Target unveiled its plans for 2023 at its annual Financial Community Meeting in New York, emphasizing its focus on offering a unique shopping experience to position the company for long-term growth.
The company plans to invest $4-5 billion this year to expand its customer-centric services, operations network of stores and supply chain facilities, digital experiences, and more. Target will also expand Drive Up Returns this spring, which allows Target.com customers to return most new, unopened items within 90 days of purchase, from their car.
“Investments in our shopping experience and frontline team have deepened our guests’ engagement with Target during the last few years, which is reflected in our continued traffic and sales growth,” said Michael Fiddelke, chief financial officer of Target, in a statement. “This year, we’ll continue investing in our long-term strategic initiatives that propel our market share and profit growth over time. Coupled with our teams’ ongoing efforts to scale our business with greater simplicity, we are confident in our ongoing ability to meet the evolving needs of our guests and deliver value for our shareholders.”
The retailer plans to launch or expand over 10 owned brands, introducing thousands of products to market at low prices. Additionally, it will appeal to value-conscious shoppers with more items starting at $3, $5, $10, and $15. In addition, the retailer indicated it will offer more promotions, enhance its loyalty program, and launch a new advertising campaign centered around driving value.
This year, Target plans to open about 20 new stores in a variety of sizes as it seeks to reach new consumers. Many of the new stores will include new design elements that reflect the local community, and highlight new brands, assortment and services, and sustainable features. The retailer is also investing in remodels and expansions of roughly 175 of its existing stores.
In addition, Target revealed an expansion of its efficiency efforts, aimed at simplifying its operations and enhancing its team and customer experience while fueling growth. It intends to achieve $2 billion to $3 billion in cost savings over the next few years.