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Target's Plans: Renovations, Smaller Stores, Going International

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Target Corp. talked about its plan for the next five to 10 years. The initiatives including spending $1 billion on store renovations, opening smaller stores and expanding into markets including Canada, Mexico or South America. In addition, it is planning on only opening 10 new stores on a net basis in 2010.

But Chairman and Chief Executive Gregg Steinhafel said ahead of a meeting with analysts that Target will apply "the same rigorous financial discipline" in the reforms that have ensured strong returns and prudent use of capital in the past.

In November, the company had warned it could have difficulty meetings analysts' fiscal fourth-quarter earnings expectations, which were for $1.12 a share at the time. Its third-quarter earnings rose 18%, snapping a streak of eight quarterly declines, as the discount retailer saw profitability improve in both its retail and credit-card operations.

The remodeling, which is meant to boost growth in same-store sales, will include more grocery selections and changes in layout and new merchandise.

For more on the plans, there are stories at the Wall Street Journal, Business Week and the Financial Times.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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