Target Corporate Strategy Essay

Corporate Strategy
CEO Brian Cornell, COO John Mulligan, and CFO Cathy Smith have announced that Target is investing over $7 billion in capital and around $1 billion in annual operating profits in order to, “grow sales faster, gain market share, and adapt to guests rapidly changing preferences”. Targets corporate strategy is to create a new image for all their retail stores. Over the next three years they hope to renovate over 600 locations to make for a more digital and convenient shopping experience. In result there will no longer be backrooms with overstocked product that cannot even be moved on the sales floor. Instead their back rooms will be used as a distribution center and guests will get their orders shipped to them directly from the retail store. Not only is this strategy cost effective but it also ensures that their customers get their orders sooner. They have also recently introduced a new system that allows team members to, “search their inventory, take payments from a mobile POS, as well as arrange deliver - all from the sales floor”. Corporate hopes that this strategy and system will be implemented

In 2017 Target decided to enhance their digital infrastructure by increasing their speed, stability, as well as their performance and capacity in order to double their digital sales. Target also, “provides guests with a streamlined experience by combining Cartwheel - a popular savings app with [their] flagship Target app” which allows customers to conveniently shop at discounted prices. Along with their digital changes Target is also focusing on introducing new exclusive brands that they believe customers will love. After the success of brands such as Cat & Jack and Pillowfort, Target has decided to introduce over 12 new brands across various departments to help expand profitable