As he looks to revive Target Corp.'s faltering business, CEO Brian Cornell said Wednesday the retailer will more aggressively pounce on opportunities to profit from the large number of store closings and retail bankruptcies that have been rocking the distressed industry.
"We know there's going to be billions of dollars up for grabs," he told reporters after the Minneapolis-based retailer reported its fourth straight quarter of lower sales.
In fact, Target projects there could be as much as $60 billion in sales up for the taking as weaker players exit the industry. Gordmans, HHGregg, BCBG, Payless ShoeSource, Rue21, American Apparel, the Limited and Wet Seal are among those who have filed bankruptcy and closed some or all of their stores this year.
"Ultimately, that's going to position us to take advantage of this market share opportunity," Cornell said.
The strategy is an underpinning of Target's new road map unveiled in February that calls for remodeling hundreds of stores, launching a dozen new brands, opening new smaller-format stores and overhauling its supply chain.
Target already has seen some success in this area. After Victoria's Secret said it was going to exit the swimwear business last year, Target quickly worked with a vendor to a roll out within five months the new brand Shade & Shore.
The line — which is Target's first foray into bra-cup sizing in the category and was launched in all stores in January — has further bolstered its No. 1 market share position in swimwear, executives said.
"We didn't rest on our laurels," Mark Tritton, Target's chief merchandising officer, told analysts. "We looked at this market with declining players and saw an opportunity to win even further."