Target Expands into California
Target Corporation (TGT), the operator of general merchandise and food discount stores in the United States, announced it plans to open 2 new stores in California, one each in Fresno and Rocklin.
The 140,000 square feet Fresno Northwest store and the 136,000 square feet Rocklin store are slated to open in Mar 2014, while 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 remodeling 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 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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