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MINNEAPOLIS-Target Corp. recently disclosed its expansion plans for this year, and confirmed at its annual meeting that it would keep the pace for at least the next five years.
In a recent filing with securities regulators, the locally based discount retailer said it expects to invest $3.2 billion to $3.4 billion, mostly in new store square footage, as well as in distribution infrastructure and systems to support this growth.
The company plans to increase its overall square footage by about 8%, as it will add from 105 to 110 new stores. The company had about 165 million sf in overall space at the end of its fiscal year on Jan. 29. That will be partially offset by store closings and relocations. In addition, the company expects to substantially remodel about 75 stores, some of which will also be expanded.
Target currently has 1,330 stores, including 141 SuperTarget stores that sell groceries. That means over the next five years, the discounter plans to add more than 600 new stores. After Target sold off its Marshall Field's and Mervyn's department store chains last year, some industry observers thought the company would immediately escalate its expansion plans, but the company says it prefers steady growth so it does not outrun its management resources or pay too much for property.
The company's highest concentration of stores is in Minnesota, Iowa, Illinois and North Dakota, as well as California, Arizona, Colorado, Maryland, Nebraska, New Jersey, where it has more than 10% of general merchandise sales. The retailer has the most growth potential in the southeast, where in many states it has less than 2.5% of the general merchandise sales--including the states of Arkansas, Mississippi and West Virginia.
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