Target Goes High-Tech

The Minneapolis-based retailer says its use of new technologies--such as faster card readers, specialized in-store satellite television advertising and devices that interpret 150 different languages which is used in its pharmacy--are helping to enhance customer experience.

"This technology is taking our in-store guest service to a new level," Bart Butzer, executive vice president of stores said in a webcast meeting with the financial community Tuesday.

It is also ringing up sales at the cash register. The upscale discounter, which operates 1,400 stores in 47 states, says it consistently outperforms rivals Wal-Mart, Costco and Kohls by delivering annual returns of 25% and has topped the S&P index with 22% returns during the last three years alone.

But it's not only high-tech that is keeping Target ahead of the competition. The company's determination to cut back on customer wait times at counters and cash registers is bringing in busy shoppers and its focus on collaboration between its design team, merchants and partners is keeping its merchandise on the cutting edge of style, president Gregg Steinhafel said.

"We're committed to making great design affordable to everyone," he said, noting that the firm will begin rolling out styles by new designers each quarter as it moves to keep its merchandise lines fresh and edgy. A new line of garden items is already in the works and a holiday gift collection will debut in stores by December, he said. Internet shoppers will have an even bigger selection with more than 200,000 items, up from 70,000, available to on-line holiday shoppers, he added.

Target's mix of swifter customer service, faster checkout times and trendsetting merchandise is apparently working. The company said it expects 2005 to be one of the best for revenue and earnings growth with sales for the year expected to reach $50 billion and increases in income and per share growth hitting the double digits.