Target Corporation (NYSE:TGT) announced that it would be expanding its remodeling plans.
The retailer said it will be remodeling a total of about 1,000 of its 1,800 stores over the coming three years. Target executives initially said that the company would be revamping about 600 stores by 2019, amounting to one-third of its locations.
The retailer than added that it would be remodeling another 325 stores or so, plus it has already complete the initial 70 or so remodels this year, according to CEO Brian Cornell.
“We’ve seen a great response from the guest,” he said. “They’re rewarding us with increased traffic. It’s given us confidence to move forward aggressively.”
Company executives say that they hope the Target remodels will boost the company’s sales by 2% to 4%, and so far, that has been the case in the stores it has remodeled.
The move is part of a broader restructuring effort from Target, which plans on shelling out $7 billion to revive the business, which has faced some difficulties in keeping up with competitors.
The company has also been looking to expand its e-commerce business at a time when the industry has been shifting towards online sales over brick-and-mortar businesses.
Target has rolled out a small urban concept store in order to help the company speed up delivery. The company’s sales per square in these locations is twice as large as other Target locations.
TGT stock popped 2% Friday.
