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Target doubles down on store remodels; rolling out next-day delivery

Target Corp. is increasing its store remodel activity and expanding its next-day delivery service of online orders.

Target on Thursday announced that it will increase the number of store remodels to more than 1,000 by the end of 2020. (The company originally said it would remodel 600 stores by 2019.) In addition to the 110 stores it remodeled in 2017, Target plans to fully renovate more than 325 locations in 2018, 350 in 2019 and 325 in 2020.

The revamped stores will feature Target’s most ambitious store redesign to date, and will feature its next-gen design elements, including digital and technology upgrades, elevated merchandise presentations and convenient fulfillment services. The remodels will be customized, with guest feedback being applied to each new remodel, the retailer said.

On the new store front, Target is opening 11 small-format stores this week, with locations in New York City (for photos, click here) , Chicago, Los Angeles, Philadelphia and Minneapolis, bringing its small-format store portfolio to 55. Target also is opening a traditional store in Honolulu this week.

Looking ahead to next year, Target will open 35 new stores in 2018 (up from a total of 32 locations this year.) The retailer's first Vermont location is due to open in South Burlington in fall 2018, bringing Target to every state in America.

“We’re elevating every aspect of how we serve our guests, including reimagining hundreds of stores, opening new small-format stores, introducing new and exclusive brands, pursuing an aggressive digital strategy and transforming the way we replenish our stores and get products to our guests,” said chairman and CEO Brian Cornell. “As we open more small-format stores in new neighborhoods across the country, we’ll be even closer to our guests, and our reimagined stores will provide elevated inspiration and ease, along with serving as hyperlocal distribution centers to fulfill digital orders faster.”

Target said it also is expanding its Target Restock program nationwide next year. The program provides next-day delivery of essentials ordered online. This includes an assortment of more than 15,000 items, such household essentials, dry grocery items, school supplies and baby food.

The new format stores and Restock program coincide with Target’s goal of delivering an easier and more convenient shopping experience, as well as offering the capacity needed to support digital growth. Specifically, these efforts will help Target leverage its store network to fulfill online orders faster. Target is also increasing store team member staffing and training to deliver elevated service and expertise, the retailer said.

Another initiative in the works is the expansion of its new curbside pickup service.  Earlier this month, Target debuted a new service that enables guests to have their digital orders brought out to their cars by a store team member. The program is being rolled out to customers throughout Minnesota’s Twin Cities area this month.
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