Target joins crowd of big US retailers seeking store expansion
By Siddharth Cavale
NEW YORK (Reuters) — Opening new stores is back in style — at some U.S. retail chains.
Executives at several major retailers in recent weeks have touted the chains' efforts to gain market share by adding new locations. Target, for instance, is adding 300, Walmart (NYSE:WMT), 150; Sam's Club, 30; Bloomingdale's, 15 and Bluemercury at least 30.
This new expansion marks a major change in strategy following years of store closures and warnings of a «retail apocalypse» caused by the rapid growth of online shopping, particularly during the pandemic.
Shoppers have continued to visit stores, even if just to pick up their online orders or have a Starbucks (NASDAQ:SBUX) coffee. This has occurred even as some famous retail names have filed for bankruptcy protection, from J.C. Penney to Lord & Taylor to Bed Bath & Beyond (OTC:BBBYQ).
Walmart and Target have hailed consumers' fondness for store pickup and delivery services for driving visits and sales in their most recent results. Walmart said online order pickup and delivery offerings helped drive its traffic up 4%. Target said «Drive-up» was popular in recouping about 240 basis points of traffic in the holiday quarter versus the prior quarter.
Target said on Tuesday that it would open more than 300 predominantly full-size stores over the next decade, for instance. The Minneapolis-based chain plans to add more sections for food in the new stores, after generating $8 billion in additional sales from that category since 2019. Once developed, the new Target stores are expected to boost sales by $15 billion annually.
It also intends to remodel nearly 2,000 existing stores. The remodels will range from full-scale renovations to less dramatic upgrades, adding new
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