Target CEO Brian Cornell recently expressed his views on the closing of many Macy's stores across the country. He sees these closures as not a setback but a chance for Target to grow and expand its reach. This outlook is part of Target's long-term plan for the next decade.
During a podcast interview, Cornell was questioned about the situation with Macy's and whether America might be moving towards a future where Target is the preferred choice over the traditional department store.
Target CEO Sees Big Chance in Macy's Closures
Cornell recently expressed his optimistic view on closing Macy's stores, seeing it as a big opportunity for Target to capture more of the market. Speaking on the "Squawk Pod" podcast this Tuesday, Cornell didn't just see the closures as a simple fact but a chance to grow Target's presence and reach out to new customers.
The podcast host, Joe Kernan, asked Cornell if he viewed these closures as an opportunity. Without hesitation, Cornell answered, "Absolutely."
Cornell elaborated on his strategy, stating, "When we see that happen, we gotta say how do we lean in, how do we make sure we introduce the Target brand, our great apparel offering to those consumers." Target aims to fill the gap left by Macy's, offering customers something new and exciting.
Furthermore, Cornell shared his enthusiasm for Target's upcoming spring clothing line. His excitement suggests Target wants to attract Macy's former customers and is keen on refreshing its offerings to appeal to a broad audience.
This move could make Target a strong contender in the retail market, capitalizing on the shifting landscape caused by Macy's closures.
"We've done some great work there-on-trend, great color, great value," he remarked. He believes these efforts are key to getting Target back on a growth path for the upcoming year.
During the conversation, Becky Quick, another show host, inquired about Cornell's objectives for the next year. Cornell expanded the vision, suggesting the focus should be on the next year and decade.
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He outlined Target's ambitious plans, which include investing in store enhancements, opening new stores, remodeling current ones, and boosting the company's supply chains and technology infrastructure.
This forward-looking approach indicates that Target is not just aiming for immediate recovery but is laying down a robust foundation for sustained growth and expansion. By focusing on improving the shopping experience and operational efficiency, Target is positioning itself for long-term success in the competitive retail market.
Target to Revamp Loyalty Program
Cornell has announced plans to enhance the Target Circle Loyalty Program, which currently has around 100 million members. The program will transition to a paid membership focusing on same-day delivery, aiming to boost company growth.
This strategy reflects Target's successful expansion in the toy market after Toys R Us closed, with Target now selling one in every four toys. "When we see changes, we gotta lean in. We gotta play to win," Cornell emphasized, signaling a push towards aggressive growth tactics.
The company's shift to a more offensive strategy comes as Macy's recently announced a workforce reduction of 3.5%, or about 2,350 positions, alongside the closure of five mall-based stores, adding to last year's shutdown of at least 80 locations.
Target's move to upgrade its loyalty program and capitalize on market opportunities highlights its commitment to staying competitive in the retail industry.
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