Target to invest $4 billion to speed new stores and remodels, expand ability to fill online orders

An individual sporting a protecting masks walks previous a Target Corp. retailer on the Grossmont Center Mall in La Mesa, California, U.S., on Thursday, Feb. 11, 2021.

Bing Guan | Bloomberg | Getty Images

Target mentioned Tuesday that it hopes to construct on its latest development by investing about $4 billion yearly over the following a number of years to speed alongside new stores, rework current ones and improve its ability to rapidly fulfill online orders.

Investors and analysts had been left with out a key piece of data, nevertheless: An outlook for the yr. The firm declined to present steerage, saying Covid-19 made it troublesome to predict client spending.

Shares had been down almost 5% early Tuesday, regardless of Target beating fourth-quarter earnings expectations.

At a digital investor day on Tuesday, Target CEO Brian Cornell made the case that the retailer’s latest outcomes aren’t a pandemic-related blip, however the payoff of its long-term enterprise technique. He pointed to investments and choices it has remodeled the previous 5 years akin to its rising assortment of personal label manufacturers, its partnerships with common nationwide manufacturers and utilizing its stores as hubs to fulfill online orders.

“Far from being a fluke, this performance is further proof that we built a business model that is working as intended, one that puts Target in a category of its own,” Cornell mentioned.

He informed buyers that continued uncertainty will not distract the corporate within the coming months.

“I recognize the frustration, not being more precise, particularly on the top line as we think about sales, but I can guarantee you our entire leadership team and every part of this organization is focused on retaining and growing market share, no matter what the variables are we have to face,” Cornell mentioned.

New stores, distribution facilities

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