Target Corporation (NYSE: TGT) Over the past couple of months, Target has decided to focus its efforts internally by choosing to reinvest in itself and lay low. After Amazon.com, Inc.(NASDAQ: AMZN) recently announced that they are acquiring Whole Foods and made continued efforts for stronger services, there has been a decrease in foot traffic in Target and Walmart stores and an extreme increase in competition. As a result, Target’s stock fell nearly 28 percent this year.
Target did not make any new advancements to increase profits, whereas Wal-Mart Stores Inc (NYSE: WMT) expanded their grocery and digital sectors by purchasing Jet.com and bought Bonobos as well as Moosejaw to boost retail segments.
Despite all of this, Target still wanted to focus on their plan to bring $7 billion into its business over the next three years. By doing so, their assets would be rationalized and costs would be cut allowing them to pick up market share over the long run. Over the next two years, they also plan to launch 12 other private label brands after making their own brand with Cat & Jack children’s clothing. They hope that exclusive merchandise will bring more shoppers into stores.
Another move they plan on making is building many smaller stores located in urban markets. This will boost sales productivity that would be twice as more than Target’s larger stores placed in suburban areas. 30 smaller stores are planned to be built and 100 remodels will be completed in the next year.