With the announcement of the opening dates of 33 stores, Target Corporation (TGT) accomplished its goal of opening 124 stores in Canada in 2013. Of these, 31 outlets are slated to be opened on Nov 13, while the remaining 2 will be opened on Nov 22. These stores will be opened across 9 provinces, including New Brunswick, Prince Edward Island and Newfoundland, where the company debuts its stores.
We believe that the opening of stores outside the United States will definitely boost the company’s top and bottom lines and improve its cash flow generation capability. The stores will carry items ranging from beauty and apparel to home, grocery, and personal care.
Some of the brands that would find shelf space in the Target stores include Nate Berkus Collection, the Sonia Kashuk Collection, Giada De Laurentiis and Shaun White apparel. The stores would also feature a wide range of Target owned and exclusive brands, such as C9 by Champion, Circo, Archer Farms, Market Pantry and Up & Up.
Target, which carries Zacks Rank #3 (Hold) intends to focus on its core businesses. The company plans to sustain its remodeling program at the existing general merchandise locations by the addition of an expanded food section along with a greater assortment of dry dairy and frozen items, improved store layout and enhancement of in-store shopping experience across departments, such as apparel, home, beauty, shoes and baby.
Alongside, Target is seeking promising expansion opportunities in international markets such as Canada and Latin America. The company is also introducing smaller-format stores called CityTarget, similar to that of its biggest rival, Wal-Mart Stores Inc. (WMT).
Moreover, Target announced its year-round price matching policy with the aim of offering its patrons the facility to match the prices offered by online retail giants.
The company will match prices with Amazon.com Inc.’s (AMZN) Amazon.com, Wal-Mart’s Walmart.com, Best Buy Co. Inc.’s (BBY) BestBuy.com, and Toysrus.com. Target believes that its price matching policy coupled with the REDcard reward program would provide it an edge over its competitors.
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