X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

For more retail coverage, click GlobeSt.com/RETAIL.

MINNEAPOLIS-Target Corp. recently disclosed its expansion plans for this year, and confirmed at its annual meeting that it would keep the pace for at least the next five years.

In a recent filing with securities regulators, the locally based discount retailer said it expects to invest $3.2 billion to $3.4 billion, mostly in new store square footage, as well as in distribution infrastructure and systems to support this growth.

The company plans to increase its overall square footage by about 8%, as it will add from 105 to 110 new stores. The company had about 165 million sf in overall space at the end of its fiscal year on Jan. 29. That will be partially offset by store closings and relocations. In addition, the company expects to substantially remodel about 75 stores, some of which will also be expanded.

Target currently has 1,330 stores, including 141 SuperTarget stores that sell groceries. That means over the next five years, the discounter plans to add more than 600 new stores. After Target sold off its Marshall Field’s and Mervyn’s department store chains last year, some industry observers thought the company would immediately escalate its expansion plans, but the company says it prefers steady growth so it does not outrun its management resources or pay too much for property.

The company’s highest concentration of stores is in Minnesota, Iowa, Illinois and North Dakota, as well as California, Arizona, Colorado, Maryland, Nebraska, New Jersey, where it has more than 10% of general merchandise sales. The retailer has the most growth potential in the southeast, where in many states it has less than 2.5% of the general merchandise sales–including the states of Arkansas, Mississippi and West Virginia.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.