Target Reports Fourth Quarter Growth and Begins 28 Twin City Remodels
MINNEAPOLIS, MN – Coming off of a strong fourth fiscal quarter, Target looks toward physical reformation. In an effort to modernize, Target will spend $250 million on 28 Twin Cities remodels as part of a plan to remodel 1,000 stores nationwide by 2020, the company reported in a press release. With the remodel, Target plans to create stores with two entrances: an entrance for ease and an entrance for inspiration.
“Target’s top priority is delivering a shopping experience our guests will love, and we’re excited to make so many of our hometown stores even easier to shop. At the same time, we’re adding new features that put the spotlight on the great assortment our guests can find at Target,” said Mark Schindele, Senior Vice President for Target Properties. “We’re always testing and learning in our stores here in the Twin Cities, so while these remodels will benefit our guests, they’ll also give us the opportunity to keep learning and adjusting.”
Some remodeled stores will include nursing rooms, and many will feature sustainability efforts like LED lights and solar panels. Ramping up the competition with Amazon, many stores will have larger order pickup counters and a drive-up lane in the parking lot.
Additionally, some highlights of the fourth quarter are as follows:
- Following the Company’s post-holiday update, comparable sales grew more than 4 percent in January, leading to comparable sales growth of 3.6 percent for the fourth quarter
- Traffic grew 3.2 percent in the fourth quarter, reflecting healthy increases in both stores and digital channels
- Fourth quarter comparable digital channel sales increased 29 percent, on top of 34 percent last year, contributing 1.8 percentage points of comparable growth
- The Company saw healthy comparable sales growth across all five of its core merchandise categories in the fourth quarter
- Fourth quarter GAAP earnings per share (EPS) from continuing operations of $2.02 reflect discrete benefits related to the Tax Cuts and Jobs Act (the Tax Act)
- Adjusted EPS of $1.37, which exclude discrete benefits related to the Tax Act, were above the midpoint of the Company’s most-recent guidance range of $1.30 to $1.40
- Target returned $591 million to shareholders in the fourth quarter through dividends and share repurchases, bringing the total to $2.4 billion for full-year 2017
“Our fourth quarter results demonstrate the power of the significant investments we’ve made in our team and our business throughout 2017. Our team’s outstanding execution of Target’s strategic initiatives during the year delivered strong fourth quarter traffic growth in our stores and digital channels, which drove healthy comparable sales in every one of our five core merchandise categories,” said Brian Cornell, Chairman and Chief Executive Officer. “At our Financial Community Meeting later this morning, we will outline our plans to continue investing in our team and make 2018 a year of acceleration in the areas that set Target apart—our stores, exclusive brands, and rapidly-growing suite of fulfillment options. While we have a lot left to accomplish, our progress in 2017 gives us confidence that we are making the right long-term investments to best position Target for profitable growth in a rapidly changing consumer and retail environment.”
To follow the Target remodel as it continues, stay with us at AndNowUKnow.