We’re always excited when we open the doors to a new or freshly-remodeled Target store—but this summer brings two extra special milestones: We cut the ribbon on our 100th small-format store, and we surpassed our 500th store remodel.
“In 2017, we made a big bet on putting our stores at the center of how we serve our guests,” says Target’s Chief Operating Officer John Mulligan. “Fast forward to today, and our investments in small formats and remodels have allowed us to reach more guests than ever before with an easy and inspiring shopping experience, while offering industry-leading same-day services like Order Pickup and Drive Up around the country.”
And we’re not done yet—not even close. In a world where consumers have more choices than ever, meaningful store experiences stand out—which is why we’re investing in our stores and our team to better serve our guests. We’re on track to remodel 1,000 stores by the end of 2020 and will open dozens of small formats each year.
Our small-format stores in big cities, suburbs and near college campuses help us bring the magic of the bullseye to new guests in areas where a traditional-sized Target wouldn’t fit. And with 500 remodels across the country, we’ve reimagined our stores to be even more inspiring and easy to shop for guests, enhancing key areas like food & beverage and apparel, home décor and furniture, and adding space for guest-favorite pickup services – like Order Pickup and Drive Up.
In fact, these investments are making in-store shopping even better for our guests, while also allowing us to fill online orders faster than ever. And that means our stores are working harder than ever—driving guest traffic and sales and supporting the majority of our digital growth.
How’d we get there? By testing little by little, learning what worked and what didn’t, and then refining our approach before scaling small formats and remodels across the country.
We started testing stores that were smaller than a traditional Target in 2012, developing an approach to localize assortments and design features that made sense for the neighborhood. We also had to make changes to our supply chain, making sure small-format stores were well-stocked and ready for guests even though they didn’t have much backroom space to store extra products. That included careful planning, more frequent deliveries and smaller trucks. After we opened our first 30 small-format stores in five years, we took what we learned and amped up the pace, opening another 30 stores in 2017 alone. We did it again in 2018 and 2019, and we’re on pace to open nearly 30 more each year for the foreseeable future.
We took time to test and learn with remodeling stores too. For years, we tried different in-store innovations and design concepts – which included testing all of our thinking in one market a few years ago to see how guests would react. Then, in 2017, we took what we learned and put it all together for our next generation store design. And we continue to refine that concept as we remodel stores nationwide—lessening the disruption guests feel during the remodel process and leaning into the elements that resonate with them the most. Along the way, we’ve learned how to give all our remodels a fresh look and feel, while putting them at the center of how we get guests their digital orders.