After announcing its plans of opening 2 new stores in California, one each in Fresno and Rocklin, Target Corporation (TGT) laid out plans to open a new outlet in San Jose in Mar 2014. This 140,000 square feet store marks the company’s 17th outlet in the San Jose area and would help generate 300 new jobs.
The Fresno Northwest store and Rocklin store would cover an area of 140,000 square feet and136,000 square feet, respectively, and each store would hire about 180–200 employees.
The move reinforces the company’s strategic initiative to consolidate its position in regions where it generates strong sales. Moreover, the expansion of its store base will facilitate it to effectively penetrate into its target markets and gain a competitive advantage over its peers.
Alongside, Target is seeking promising expansion opportunities in international markets such as Canada and Latin America and has introduced smaller-format stores called CityTarget, similar to that of its biggest rival, Wal-Mart Stores Inc. (WMT).
Moreover, the company plans to sustain its remodelling program at existing general merchandise locations by the addition of an expanded food section along with a greater assortment of dry dairy and frozen items, improved store layout and enhancement of in-store shopping experience across departments such as apparel, home, beauty, shoes and baby.
Further, Target earlier announced its year-round price matching policy with the aim of offering its patrons the facility to match the prices being offered by online retail giants. The company will match prices with Amazon.com Inc.’s (AMZN) Amazon.com, Wal-Mart’s 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.
Currently, this Zacks Rank #4 (Hold) company operates through 1,832 stores.
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