With the aim of solidifying its store base in Canada, Target Corporation (TGT), the operator of general merchandise and food discount stores, announced plans to open 20 new additional stores spread across Alberta, British Columbia, Ontario and Saskatchewan. The stores are slated to be opened from Jul 16 to Jul 30.
The company has been focusing on the Canadian market for quite some time now and intends to strengthen its position in the region by opening 124 stores in 2013.
We believe that store expansion outside the United States will definitely boost the company’s top and bottom lines and improve its cash flow generation capability. The broadening of its store base facilitates Target to effectively penetrate into its desired markets and gain a competitive advantage over its peers.
The stores will carry items ranging from beauty and apparel to home, grocery, and personal care. Some of the brands that would find shelf space in the Target stores include Nate Berkus Collection, the Sonia Kashuk Collection, Giada De Laurentiis and Shaun White apparel. The stores would also feature a wide range of Target owned and exclusive brands, such as C9 by Champion, Circo, Archer Farms, Market Pantry and Up & Up.
Besides seeking promising expansion opportunities in international markets, the company introduced smaller-format stores called CityTarget, similar to that of its biggest rival, Wal-Mart Stores Inc. (WMT).
Alongside, Target 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.
The company also 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 (Sell) company operates through 1,832 stores.
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