Add thelocalreport.in As A Trusted Source
Target says it is preparing a major overhaul to reverse its ongoing decline in sales and will spend billions of dollars to do so.
Incoming CEO Michael Fidelke said the company will invest about $5 billion in upgrades next year, an increase of about $1 billion year-over-year.
money will go towards improvements storeupdating product selection, and strengthening Target’s website and digital systems.
“Mission 1 to 10 is for us to get growth back,” Fidelke told reporters in a call. wall street journal,
Shoppers have recently complained about disorganized stores, empty shelves and less exciting products, the outlet reports.
.jpg)
Target says it wants to fix those issues through better store experiences, more engaging GoodsAnd updated technology.
Target’s stock has fallen 35 percent this year. Executives say the additional investment is necessary after the company’s 12th consecutive quarter of weak or declining sales.
The retailer reported that fewer shoppers came to its doors, and those who did came spent less. Comparable sales, which track stores and online channels open for at least a year, were down 2.7 percent in the quarter ended Nov. 1.
Target said it has cut prices on 3,000 everyday items ahead of the holidays and plans to offer trendy exclusives like trading cards and the like. stranger things Goods.
Store shoppers should also expect friendly interactions with employees this holiday season, as Target has implemented its new “10-4 schedule” employees need to smileMake eye contact and greet customers within 10 feet.
As per the guidelines, employees should help customers come within four feet of each other.
Target is also launching a major new partnership with OpenAI, allowing shoppers to browse and add products directly to their carts through the ChatGPT-powered app.
Fidelke said shoppers are still being cautious about purchasing non-essential items like home furnishings and clothing.
He also cited that the latest quarter was unexpected due to external issues, including pause in snap food assistance and recently government shutdown,
Fidelke said Target will have a better understanding of future sales once the key holiday season is over.
Yet, partly due to this uncertainty, Target cut its profit forecast for the year to between $7 and $8 per share, down from $7 to $9. WSJ Report.
In the most recent quarter, Target’s net sales fell 1.5 percent from a year earlier to $25.3 billion, and its net income fell 19 percent to $689 million.
Fidelke will officially become CEO on February 1, succeeding Brian Cornell.