Target to Focus Major Remodel Efforts on Twin Cities

Target Corp. revealed its plans to continue remodeling stores across the country, with a special focus on the Twin Cities. 

After the retailer voiced its efforts to open 35 new stores in 2018 and accelerate the number of store remodels to more than 1,000 by the end of 2020 following the opening of a new small-format store in Midtown Manhattan’s Herald Square in October, Target is now upping its game with plans to invest $250 million in Minneapolis and St. Paul, Minn., remodels this year. The retailer will also make strides toward its 2020 goal with the remodeling of about 325 stores in 2018, which will include locations such as New York, Los Angeles and Chicago. 

“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, SVP of 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.”

Target officials said the updated Twin Cities stores will be modeled after its Nicollet Mall flagship in downtown Minneapolis, one of 110 stores that were remodeled in 2017. Last year, the retailer made major investments in the Dallas-Fort Worth area, which officials said helped inspire the "new wave" designs. For example, 40 of the remodeled Texas locations feature nursing rooms, which will be included in every 2018 remodel. 

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The remodeled stores will keep the needs of local guests in mind while pulling from elements of the next-generation design. Sustainability is also at the forefront of the remodeling efforts, with features such as LED lighting and solar panels being installed where possible.

Target's next-generation design features a modern aesthetic and enhanced merchandising presentation that "showcase trends and top-of-mind products for the season." The retailer will also continue to up its digital game following its acquisition of Shipt in December, with bigger order pickup counters or a drive-up lane in the parking lot featured in many of the remodels.

Of particular note, the remodels will have two separate entrances, with each side of the store designed for a specific purpose. One half of the store will focus on "ease" with features such as grab-and-go grocery items and an order pickup counter, and the other will focus on "inspiration" with elevated product and brand displays for shoppers to browse.

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According to officials, stores will remain open during the remodels and staff will work to ensure customers are able to find the items they need during the transition. 

“It’s our store teams who truly bring these new shopping experiences to life for our guests,” said Joe Contrucci, SVP of stores. “So they’re prepped—and really excited—to provide exceptional service before, during and after the remodel.”

In financial results announced separately Tuesday, Target said same-store sales improved by 3.6% in the quarter on a 3.2% increase in store traffic and with the help of 29% growth in online revenue. Margins, however, were down on higher fulfillment costs. Target said it expected low-single-digit comps for the full year.