Target will spend up to $2.5 billion in its technology and supply division for next year’s sales, said the company’s CEO Brian Cornell. It was also said that Target’s annual budget for the current year would reach up to $1.8 billion.
The announcement made on Thursday by Cornell intends to better its customers’ shopping experiences as the funding will be used to keep shelves full and improve the online ordering platform. The investment will allow the retailer company to take its marketing strategies to the next level as well as expanding its general reach.
The app previously developed by Target will transform how online purchases work currently by permitting customers to receive goods delivered to their homes. While the stock in stores will not be isolated as the retailer company also plans to improve the in store experience for customers, making it easier for them to order their merchandise and pick it up.
Target executives accountable for the revamp of the brand assure that stores are being improved in order to offer more eye-catching products. And in the current marketplace it’s worth noticing how aggressive competition is, making even company giants as the retailer Target have to adapt in order to thrive.
The goal set by Target’s executives is focused on increasing sales up to 2.5% this year. At the same time, the company plans to trim down costs by reducing technology costs as well as increasing sale margins by 3% for the next year. As well as improving its dispenser chain to carry out online orders more efficiently, Target also seeks to optimize its store stocks by getting rid off unnecessary items.
Clash between Retailer Company Giants
Considering the heavy weight competitor for the Minneapolis-based retailer, Wal-Mart has a wider expending limit than Target as well as more reach nationwide. The company’s direct competitor recently copied the measures taken by Target in order to assemble its stock with more suitable products for customers, as Wal-Mart also reduced its supplies by eliminating 15 percent of its goods. Even so, Target has proven to be a powerful force in the retail marketplace as a suitable competitor for the company giant Wal-Mart.
However the battle between Wal-Mart and Target to provide a better service for customers across the United States wraps up, there’s no doubt the ultimate winner will be the American customer. Cornell’s job as CEO of Target has been remarkable considering he helped refocus the retailer’s priorities and aggressively engaged in Target’s growth in digital media and sales efficiency.
Source: The Washington Post