Home / Business and Economy / Target Bets Big on $1B Facelift Amid Sales Slump
Target Bets Big on $1B Facelift Amid Sales Slump
19 Nov
Summary
- Target is investing $1 billion to remodel stores and refresh merchandise.
- Comparable sales declined 2.7% last quarter, missing analyst expectations.
- Incoming CEO aims for rapid return to growth despite economic pressures.
Target is committing an additional billion dollars to enhance its store fleet, aiming to reignite growth after a challenging period. The Minneapolis-based retailer reported its tenth quarter of negative or flat comparable sales in the last twelve, and anticipates a further decline in the crucial fourth quarter. Incoming CEO Michael Fiddelke has stated that the company is far from satisfied with its current performance.
The retailer's third-quarter comparable sales fell by 2.7%, falling short of analyst predictions, although earnings per share exceeded expectations. Fiddelke cited a significant drop in September as a primary reason for the shortfall. To address these issues, Target plans to increase annual capital expenditures from $4 billion to $5 billion, focusing on store renovations, merchandise assortment, and floor plan changes.
