Target Corporation (TGT - Analyst Report) as part of its P-fresh remodel program, which facilitates the company to sustain sales momentum and continue to drive traffic through fresh offerings and enhanced customer shopping experience plans to introduce a new section dedicated to grocery starting with its remodeled stores in Detroit.
The company is expected to allot 10,000 square feet area to fresh grocery.
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.
During fiscal 2011, Target remodeled 400 locations, bringing the total count to 900 stores. In fiscal 2012, the company plans to complete about 230 more general merchandise remodels in the U.S. that will result in more than 1,100 remodeled stores by the end of the year.
Alongside, Target is seeking promising expansion opportunities in international markets such as Canada and Latin America and revealed its plans to introduce smaller-format stores called CityTarget, similar to that of its biggest rival, Wal-Mart Stores Inc. (WMT - Analyst Report).
Moreover, 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 - Analyst Report) Amazon.com, Wal-Mart’s Walmart.com, Best Buy Co. Inc.’s (BBY - Analyst Report) 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.
Going forward, the company expects its fourth quarter earnings to meet or exceed the lower end of its earlier announced guidance range of $1.64 – $1.74 per share. Moreover, the company expects low single-digit increase in its January comps.
Currently, Target holds a Zacks Rank #3 (Hold).