Target plans new U.S. stores, expansion into Canada

01/13/2011 05:09:13 PM
Bruce Blythe

Target Corp. said it will open 21 new stores in 13 states this year and remodel 400 existing locations, and also plans to expand into Canada by 2013.

Most of the new or remodeled U.S. stores will include PFresh departments, which sell fruits, meats vegetables and other fresh foods.

“With the addition of an expanded fresh food assortment, our new stores will offer guests everything they need in one convenient location,” John Griffith, an executive vice president with Minneapolis-based Target, said in a news release.

Last year, Target planned to have PFresh departments in about 850 of its 1,750 U.S. stores by the end of 2011.

In a news release today, Target said it will pay $1.85 billion to Hudson Bay Co. for leases on as many as 220 stores run by Zellers Inc., a Canadian discount retailer. Target plans to convert 100 to 150 of those into Target stores throughout Canada in 2013 and 2014.

“This transaction provides an outstanding opportunity for us to extend our Target brand, Target stores and superior shopping experience beyond the United States for the first time in our company’s history,” Gregg Steinhafel, the company’s chief executive, said.

In the U.S., five of Target’s new stores this year will be in California and two will be in Pennsylvania, with others planned for states including Hawaii, Ohio, North Carolina and Wisconsin, the company said. During the first nine months of 2010, Target opened 13 new stores and remodeled another 341.

While traditional Target locations carry no perishable items, the PFresh stores sell fresh produce, including bananas, seasonal fruit, berries, bagged salads and baby carrots. Target launched the PFresh format in 2008.

Target fared better than many other retailers as the economy struggled. For the quarter ending Oct. 30, Target reported net earnings of $535 million, up 23% from the same period a year earlier. Sales rose 2.7% to $15.2 billion.

During the same quarter, Target’s comparable-store sales rose 1.6%. Comparable-store sales, a widely followed measure of retailer performance, reflect stores open at least a year.



Comments (1) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left

NancyKrchniak    
Bonita Springs Florida  |  June, 11, 2012 at 12:55 PM

Our beautiful Taqret Store has been closed for two years much to our unhappiness. It is a big store but very user friendly and an Office Max closed next to it because its business sort of died because Target closed shop so now there is even more space available for use to reopen or remodel.If you are considering remodelng some of your old properties, please consider the Bonita Springs store.You would find a really good market for everything you sell. Thank you.

Join the conversation - sign up for FREE today!
FeedWind
Feedback Form
Leads to Insight