Target CEO Brian Cornell laid out his road map for the company at an investor meeting on Tuesday, including plans to cut costs, bolster food offerings and expand through new urban locations.
The Minneapolis-based company also said it would cut several thousand positions over the next two years, mainly from headquarters locations, in relation to cost-cutting efforts.
Target plans to achieve $2 billion in cost savings over the next two years, which is meant to free up capital to reinvest in key growth and profitability initiatives. The company has been working to move on from costly blunders, including a massive data breach andunsuccessful foray into Canada.
“While we’re in the early days and there’s no doubt that transformation can be challenging, we’re taking the steps necessary to unleash the potential of this incredible brand,” said Cornell, who took the top job about six months ago.
Among the priorities outlined by management were plans to significantly bolster food offerings at Target, including more natural, organic and gluten-free options, with the biggest changes to be completed next year. It’s also testing smaller, urban store formats; Of the 15 new stores planned for this year, eight will be mini Target “express” stores. It reiterated the importance of digital sales and its signature categories, which is comprised of style, baby, kids and wellness.
In an effort to boost shareholder value, the company told investors it would repurchase $2 billion in shares this year, and $3 billion in 2016 and each year beyond.
Source: Forbes | Lauren Gensler