Target Corporation (TGT) laid out plans to open a new outlet in King of Prussia, Pa. in Jul 2014. This 165,000 square feet store marks the company’s first store in the city, and is expected to generate 200 to 250 new jobs. The store will be part of the Valley Forge Shopping Center.
The move reinforces the company’s strategic initiative to consolidate its position in regions where it sees opportunity to generate strong sales. Moreover, the expansion of its store base will facilitate it to effectively penetrate into its target markets and gain a competitive advantage over its peers.
Alongside, Target is seeking promising expansion opportunities in international markets such as Canada and Latin America and has introduced smaller-format stores called CityTarget, similar to that of its biggest rival, Wal-Mart Stores Inc. (WMT).
Moreover, the company plans to sustain its remodeling program at 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.
Further, Target announced its year-round price matching policy with the aim of offering its patrons the facility to match the prices being 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.
Currently, this Zacks Rank #3 (Hold) company operates through 1,856 stores comprising 1,788 in the United States and 68 in Canada.
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment