Target to invest more to grow footprint, raise salaries, and expand Drive Up delivery service
The announcement comes as the disco...
Target has revealed that it is going to spend an additional $1bn in 2018 to keep up with rivals Walmart and Amazon.
The announcement comes as the discount chain posted strong sales results in its fourth fiscal quarter, noting that comparable sales roles were up 3.6% during the critical Black Friday and Christmas period that ran from November to January.
The retailer also reported a 3.2% increase in foot traffic and online growth of 29%, which was ahead of analyst estimates.
- Aldi to pilot outposts in Kohl’s stores
- Tesco completes Booker takeover in £4bn deal
- Supervalu Inc names new CFO
Target said that the extra spending will include raising employee pay from $11 to $12 an hour, remodelling over 300 stores and building around 30 new small stores.
The US company also intends to accelerate e-commerce growth by expanding its home delivery thanks to its newly acquired Shipt stores.
In the competitive retail market, Target also said that it was going to expand its Drive Up offering to around 1,000 US stores this year.
This programme allows customers to order items through the company’s app, drive up to a store and employees will bring the purchases out to their car.
“Our fourth quarter results demonstrate the power of the significant investments we’ve made in our team and our business throughout 2017,” said Brian Cornell, chairman and chief executive officer of Target Corporation.
“[We plan] to continue investing in our team and make 2018 a year of acceleration in the areas that set Target apart- our stores, exclusive brands, and rapidly-growing suite of fulfillment options.
He added: “While we have a lot left to accomplish, our progress in 2017 gives us confidence that we are making the right long-term investments to best position Target for profitable growth in a rapidly changing consumer and retail environment.”
Jim Donald appointed the CEO of Albertsons
Donald, who previously worked as the company...
The Idaho-based grocery chain, Albertsons, has appointed Jim Donald as its new Chief Executive Officer.
Donald, who previously worked as the company’s President and Chief Operating Officer, will keep his presidential role.
The new CEO will replace Bob Miller, who will continue in his position as Chairman of the Board.
“Jim Donald has built an exceptional career in retail,” remarked Bob Miller.
“His knowledge of our company and industry is unmatched, and I know his contributions will be invaluable as we enter the next chapter of Albertsons Companies.”
“We look forward to tapping his experience in leading large consumer brands as we work every day to meet our customers’ needs, both in-store and online.”
- Read the latest issue of Food Drink & Franchise here
In his career, Donald has held positions such as the CEO of Starbucks and the CEO of Pathmark Stores.
The newly-appoint CEO also worked for Albertsons for 15 years, starting 1976, becoming the Vice President of Operations in Arizona.
“Albertsons Companies is uniquely positioned to operate in both a 'four walls' traditional environment and the 'no walls' world of technology,” stated Jim Donald.
“We serve 34 million customers each week across our 2,300-plus stores and serve 5.5 million patients in our 1,700-plus pharmacies.”
“That's a significant food, health and wellness footprint. We're well positioned to serve the evolving needs of today's customer, wherever and whenever they choose to shop with us.”
“I am looking forward to leading this dynamic company as we focus on innovation and customer-centric retailing in all its forms.”