Target Corp. plans to add 600 stores by 2010, expanding the chain to 2,000 stores.
Target execs think the retailer can double its size to 4,000 stores and triple sales volume to more than $140 billion before it has saturated the U.S.
An estimated 150 of the new stores will be SuperTargets, with full grocery stores. The chain now has 1,331 stores, 141 of them SuperTargets; total sales neared $47 billion last year.
By contrast, Wal-Mart Stores has 3,720 U.S. stores, 1,761 of them Wal-Mart Supercenters. Its net sales were $285.2 billion for the year ended Jan. 31, 2005, up 11.3%.
Minneapolis-based Target — and other retailers eager to expand — could benefit from a brisker real estate market as consolidating chains close some stores. Retail sites are likely to open up as Federated Department Stores completes its purchase of May Department Stores Co., and Sears Holdings Corp. realigns its portfolio following the March merger of Sears, Roebuck & Co. with Kmart Holding Corp.
Target’s total revenues hit $11.48 billion for the quarter ended April 30, up 12.7% from first-quarter 2004. Same-store sales rose 6.2%; new stores and credit card operations contributed the rest of the growth.
“We are pleased with our first quarter results,” said Target Chairman-CEO Bob Ulrich in a statement. “Our performance reflects our discipline in executing our strategy and our success in delighting our guests with the right combination of innovation, design and value. We are optimistic about our ability to sustain our competitive advantage.”
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