In order to expand its global footprint, Target Corporation (TGT - Free Report) has been focusing on the Canadian market for quite some time now. To materialize its plans, the company will be opening 124 stores in 2013. After unveiling the first 24 stores in Mar 2013 that are spread across Ontario, this Zacks Rank #3 (Hold) company is now aiming toward opening an additional 24 outlets in Western Canada.
Beginning today, the residents of Canada will gain access to 22 new Target stores, comprising 10 in Alberta, 9 in British Columbia and 3 in Manitoba. Two more stores will be inaugurated on May 14, one each at Alberta and British Columbia.
We believe that the opening of stores outside the United States will definitely boost the company’s top and bottom lines and improve its cash flow generation capability. 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.
Target intends to focus on its core businesses. The company plans to sustain its remodeling program at the 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. The company is also introducing smaller-format stores called CityTarget, similar to that of its biggest rival, Wal-Mart Stores Inc. (WMT - Free Report) . Target is now operating five CityTarget stores in Los Angeles, Seattle, Chicago and San Francisco, and plans to open three more outlets in fiscal 2013.
Moreover, Target announced its year-round price matching policy with the aim of offering its patrons the facility to match the prices offered by online retail giants.
The company will match prices with Amazon.com Inc.’s (AMZN - Free Report) Amazon.com, Wal-Mart’s Walmart.com, Best Buy Co. Inc.’s (BBY - Free 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.