Target Corp. (TGT) announced the opening of four new stores, including 2 stores in New York and one each in California and Florida. Of these, the stores in New York and California will open doors in Jul 2014, while the Florida location will start operations in Oct 2014.
In New York, one of the company’s new stores will be located in the new Throggs Neck mall in Bronx-Throggs Neck, occupying about 165,000 square feet. The mall is situated close to the crossroads of Lafayette Avenue and Hutchinson River Parkway, towards the north of Bronx-Whitestone Bridge. This store will mark the company’s 3rd store in Bronx.
The company’s another New York location will be situated in proximity to the crossroads of Sunrise Highway and Broadway Avenue in Sayville. Occupying a floor space of nearly 144,000 square feet, this store will mark Target’s 21st outlet in Sayville. Including the new Bronx and Sayville stores, Target will now operate 60 stores in New York.
The upcoming Californian store will be located at the Shoppes at Westlake Village mall in Russel Ranch Road, Westlake Village. This will be the first Target store in the city, occupying a space of roughly 138,000 square feet.
Lastly, Target’s new store in Florida will be placed close to the crossways of Northwest 102nd Street and Flagler Avenue in Miami. Spanning nearly 140,000 square feet, this will be the company’s 31st outlet in the Miami-Fort Lauderdale region.
In order to enrich its customer’s shopping experience, all four stores will make daily necessities and exclusive assortment of several brands available. Moreover, the stores will stock select freshly prepared and packaged meat and pre-packed baked items apart from a Starbucks section and a Target Pharmacy, adding to shoppers’ convenience.
This general merchandise and food discount stores operator will deploy nearly 200-250 workers each in its Bronx-Throggs Neck and Sayville outlets. The Westlake and Miami stores will hire approximately 150–200 and 200 members, respectively.
Along with the expansion of its retail store business, Target is also capitalizing on the thriving beauty industry by extending its Beauty Concierge program to 95 outlets, covering the San Francisco Bay region, Dallas-Fort Worth, New Jersey and New York. Its focus on the beauty industry is also evident from its acquisition of DermStore Beauty Group. However, going forward, the company intends to focus on its core businesses.
Moreover, Target had announced its year-round price matching policy with the aim of offering its patrons the facility to match the prices offered by online retail giants. The departmental retailer will match prices with Amazon.com Inc.’s (AMZN) Amazon.com, Wal-Mart Stores Inc.’s (WMT) Walmart.com, Best Buy Co. Inc.’s (BBY) BestBuy.com, and Toysrus.com. Target believes that its price matching policy coupled with the REDcard reward program would provide it an edge over its competitors.
The company is expected to announce its third-quarter fiscal 2013 results on Nov 21, 2013. Our proven model does not conclusively show that Target is likely to beat the Zacks Consensus Estimate this quarter. This is because the company carries a Zacks Rank #3 (Hold) and an Earnings ESP of -3.23%. For a stock to outperform, it needs both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3.
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