Target Corporation (NYSE:TGT) Proves Admirable Values Could Be Key To Robust Financials
Target Corporation (NYSE:TGT) has been running store experiments alongside smart advertising at select locations to try to draw in customers and get them spending more. Looking at the early indicators, the efforts are paying off. The retailer posted 3Q results that matched optimistic expectations for the quarter. The management remains committed to turning around the company by broadly rolling out tests that have generated favorable results in the trial stores.
2.1% uptick in sales
Target Corporation (NYSE:TGT) started 2015 with too many tough battles to fight. The credit data breach fiasco and increasingly difficult retail environment threatened to chock life out of the company. However, strong management execution is returning hope to Target. The 2.1% year-over-year increase in 3Q sales to $17.6 billion didn’t come on nothing. Successful store experimentation, especially update to the foot category, saw the company attract more customers and give them a reason to spend more. Comparable store sales rose 1.9%, above the consensus estimate.
Broader rollout of new concepts
For some time, Target has been testing a new store presentation concept at a number of of its stores in Chicago. The store experimentations capture improved displays, additional selections and smart presentations in the food category. The updates made a difference as the company saw an increase in customer traffic and spending. With that, there are plans to expand the test with the roll out of the new concepts at 25 stores in Los Angeles. Ultimately, Target hopes to roll the new store adjustments to all its store networks to multiple the benefits that have been noted in the test locations.
Small format stores
Besides updating food department presentation at its stores, Target Corporation (NYSE:TGT) is also opening small format stores at strategic locations. For example, the company intends to open a 45,000-square-foot store in Tribeca area of Manhattan to target tourists, young families and office workers in the area. More such stores are in the cards for rollout in other strategic markets.
Customer-oriented thinking pays
With the progress that it has already made, Target Corporation (NYSE:TGT) is standing out a testimony that commitment to doing things the right way doesn’t come to nothing.
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