Mar 1, 2023 - Business

Target's 2023 game plan: More deals and faster delivery

Illustration of the Target Corp. logo edited into a dollar sign.

Illustration: Brendan Lynch/Axios

With inflation still atop consumers' minds, Target is planning more discounts for shoppers this year.

Driving the news: The Minneapolis-based retailer unveiled its 2023 plan to investors on Tuesday.

Details: Target said it will launch or expand 10 private label brands, which are often lower priced than name brands. It will also enhance its Target Circle loyalty program and debut a new "affordable joy" ad campaign.

What's next: Target will also spend $4 billion to $5 billion on its stores, supply chain and e-commerce this year.

  • After piloting a drive-up return service at a limited number of stores last year, Target will add those capabilities to all 2,000 stores nationwide by the end of this summer.
  • The retailer will speed up its next-day delivery service by increasing its national network of sortation centers from nine to 15.
  • It will also open 20 new stores in 2023 and renovate 175 existing ones.

State of play: After two years of surging sales thanks to the way the pandemic changed shopping habits, big box general merchandise retailers like Target and Walmart saw sales cool last year as consumers spent more money on travel and dining.

Yes, but: Target surprised Wall Street Tuesday when it reported a 1% increase in sales at stores that had been opened for at least one year.

  • Profits, however, have shrunk due in part to excess inventory that the retailer is selling at steep discounts.

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