US variety retailer Target Corp has announced plans to invest $4 billion (€3.8 billion) to $5 billion (€4.7 billion) in 2023 to focus on creating a 'differentiated guest shopping experience', which it says will result in long-term growth.
The investment will see the expansion of its guest-centric services, operations network of stores and supply chain facilities, digital experiences and other capabilities.
Michael Fiddelke, chief financial officer of Target Corporation said, "Investments in our shopping experience and frontline team have deepened our guests' engagement with Target during the last few years, which is reflected in our continued traffic and sales growth.
"This year, we'll continue investing in our long-term strategic initiatives that propel our market share and profit growth over time. Coupled with our teams' ongoing efforts to scale our business with greater simplicity, we are confident in our ongoing ability to meet the evolving needs of our guests and deliver value for our shareholders."
The retailer aims to launch or expand more than 10 private-label brands to offer thousands of new products at competitive prices.
It plans to introduce more items starting at $3, $5, $10 and $15 to cater to 'value-conscious' shoppers.
Target will also focus on more promotional offers, introduce enhancements to its Target Circle loyalty programme and launch a new advertising campaign on how Target delivers affordable joy.
The retailer plans to expand its Drive Up Returns service across the US.
Drive Up Returns is available on purchases made through Target.com accounts and allows customers to return most new, unopened items within 90 days of purchase from their cars, at no cost.
Target will also open 20 new stores in various formats to reach new shoppers.
These stores will feature new design elements reflecting the local community, experiences highlighting new brands, assortment and services, and sustainability measures.
By the end of 2026, Target aims to expand its sortation centre network from nine to more than 15, as it seeks to expand next-day delivery capabilities across major US markets.
The move will enable the retailer to deliver digital orders faster, more efficiently and at a lower cost, with up to 40% of orders fulfiled by its last-mile delivery capability arriving next day.