Target Stores will add 80 to 85 new stores this year at a cost of $3.2 billion to $3.4 billion.
Meanwhile, Target continues to seek a buyer (or buyers) for its Mervyn’s and Marshall Field’s divisions. Target hired Goldman Sachs in March to look at options for the struggling divisions; divestiture seems the most likely option.
Minneapolis-based Target plans to build 95 to 100 new Target stores this year, and will close or relocate to 10 to 20 for a net addition of 80 to 85 stores. The chain operates 1,249 stores, 101 of them added in 2003.
Target also plans to add more consumable items and step up in-store merchandising of everyday essentials to spur more frequent trips, the company reported. Key categories are food, HBC, paper products and pets and new store design will accommodate bigger departments for these categories. Target also will add solutions-based departments for shoppers undergoing major lifestyle changes, such as Mom and Baby and moving or new households, and merchandise consumer electronics with toys and sporting goods under an “entertainment world” umbrella.
Target Corp. reported 2003 revenues of $48.1 billion. Target’s net retail sales for the five weeks ended April 3 rose 13.2% to $4.4 billion over the same five-week period ended April 5, 2003. Comparable-store sales rose 7.3%, Target reported.
Mervyn’s and Marshall Field’s have fared worse. Mid-scale department store Mervyn’s had sales of $3.6 billion in 266 stores last year. Upscale Marshall Field’s brought in $2.6 billion through its 62 stores in 2003.
“We have dedicated significant effort to increasing sales and profits at Mervyn’s and Marshall Field’s over many years and we continue to believe that both these businesses are valuable ongoing operations,” said Chairman-CEO Bob Ulrich in a statement.
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