Target Corporation (TGT - Analyst Report) will unveil its second store in Cary, N.C., in Mar 2014. This new 135,000 square feet store will hire 200 associates, and offer daily fresh produce, fresh packaged meat, pre-packaged baked goods and other exclusive branded products.
Target is also eyeing stores in international markets, such as Canada and Latin America. Canadians now have the option to shop at Target, as the company opens its much awaited stores in Ontario. The doors of the 3 pilot stores in the Canadian province opened on March 5.
Target, in order to expand its global footprint, has been focusing on the Canadian market for a long time, and plans to open 124 stores in 2013 with the first 24 outlets slated to be inaugurated in March across Ontario. We believe the opening of stores outside the United States will definitely boost the company’s top and bottom lines and improve cash flow generation capability. The stores will carry items ranging from beauty and apparel to home, grocery, and personal care.
This Zacks Rank #3 (Hold) stock is also extending its arms in the rapidly expanding cooking and kitchenware market with a view to draw more traffic by enhancing its portfolio of offerings. Target entered into 2 separate transactions to acquire CHEFS Catalog and assets of Cooking.com. The financial terms of the deals, which are expected to conclude within 30 days, were not revealed.
Target intends to focus on its core businesses. 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.
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.