Eye on Retail: Target's new-look milestone
Target Corp. has hit an important milestone in its ongoing effort to update its store and customer experience.
The discounter has completed its 1,000th store remodel, featuring its latest in-store design. Target said its “stores-first” strategy has paid off — from a 2% to 4% sales bump in updated stores in the first year post-remodel to increased loyalty from new and existing customers.
The company’s 2022 remodel program is its most ambitious yet, with nearly 200 full-store remodels planned through the year. In addition, Target is undertaking almost 200 fulfillment remodels, which specifically focus on building capacity for its same-day services such as Order Pickup and Drive Up.
Also, at another nearly 200 select stores, the company will add Drive Up canopies to the exterior that improve safety and better protect employees and customers from the elements.
“We know that when guests use our same-day services, they’re more likely to shop Target more often, and our investment in these areas is just another way we’re putting our guests’ needs first,” the company said.
As its remodeling program continues, the retailer said it plans it leverage the insights and learnings it has gained from the past 1,000 renovations. Here are some specifics.
Welcoming
Elements such as wood, wood tones and specialty lighting are being used to create warmth and make customers feel welcome. Target has also made changes to its in-store marketing, with a goal to ensure its signage better reflects the community around it “so our guests feel represented and welcomed whenever — and however — they shop with us.”
Layouts
Target has learned that if renovation layouts are similar to the original, customers can easily find their favorite items. Consequently, it is keeping key store categories in the same place so shoppers get accustomed to their renovated store’s layout.
More in store
Alongside full-store renovations, Target has added our shop-in-shop experiences such as Ulta Beauty, Disney and Apple to select locations, along with Starbucks. There are currently more than 1,700 Starbucks already in place.
Target said it is keeping the planet in mind as it undertakes remodels, we’re keeping the planet in mind, too. It has made “smart” shifts to aspects of the store as part of its Target Forward goals, including switching each of its stores over to natural refrigerants by 2040, helping to lower emissions across the business. It is also expanding on the 150 locations that currently offer electrical vehicle charging stations with additional installs at select stores across the country.
Also, by keeping renovation timelines short and limiting disruptions, it is seeing more frequent trips to stores from existing customers, who tell us they love the updates and the new brands and products they’ve discovered.
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This article first appeared in Chainstoreage.com, sister publication of HBSDealer.