Dive Brief:
- Furthering it’s multiyear store expansion strategy, Target is opening eight new stores this summer across California, Connecticut, Florida, New Jersey, New York and Pennsylvania, according to a company post last month. The retailer plans to open 20 this year.
- The new locations will open between July and August, with three of the spaces larger than Target’s chainwide average of 125,000 square feet.
- Target’s new stores includes the company’s eighth location in the Queens borough of New York City and its 53rd store in New Jersey. The retailer also hinted at additional openings this October.
Dive Insight:
Target’s latest store openings are an extension of its effort to open 300 over the next decade.
The mass retailer opened 23 stores last year and unveiled a strategic plan to exceed $15 billion in sales growth by 2030. The larger strategic plan includes a $4 billion to $5 billion investment this year in stores, supply chain and technology, along with a merchandise revamp featuring an emphasis on private labels and newness. Target has also invested in building out shop-in-shops with Ulta Beauty, though those expansion efforts were paused as of April, and in February announced it would develop Warby Parker shop-in-shops at five stores this year.
A positive impact from this strategic shift will be important for Target, which is eager to turn around the business after slumping sales and consumer backlash. Its latest first quarter earnings in May included a negatively revised full-year outlook and year-over-year declines in merchandise sales and comps.
Target in July also held its annual Circle Week savings event, which competes with Amazon’s Prime Day sale and Walmart Deals. This year, Target focused its weeklong sale on back-to-school shopping with additional discounts for students and teachers.
Walmart has also embarked on an ambitious store expansion plan, announcing in 2024 a five-year plan to build or convert over 150 locations and remodel 650 stores within a year. The mass retailer has turned its eye to large formats recently, opening its first Supercenter in four years this spring, with plans to open four more in 2025.
