Target's massive overhaul of stores reaches halfway point

Target Corp. recently finished remodeling its 1,000th store, passing the halfway point in a chainwide renovation that began before the pandemic and has cost billions of dollars.

This year is the most active yet in Target's massive program. Nearly 200 full-store remodels and 200 fulfillment-related remodels, which add features like canopies in drive-up areas, are scheduled for completion.

Amid logistics challenges and ever-changing customer demand, Target executives say they remain committed to remodeling nearly all of its approximately 1,900 store locations.

"The remodel program is our vehicle to really invest in continuing to elevate the store experience for our guest in discovery but also to invest in ease for our guest," John Conlin, Target's senior vice president of properties, said in an interview with the Star Tribune.

Target, which last month celebrated the 60th anniversary of its first store, located in Roseville, is putting the finishing touches on its latest remodeled store in Grand Forks, N.D.

Remodeling stores usually leads to higher sales for retailers. Target's updated stores experience a sales bump of 2 to 4% in the year on average after improvements are made, executives said.

In 2017, Target announced it would spend about $7 billion over three years to update hundreds of stores, open new locations, and make upgrades throughout its logistics. As it added stores to the remodeling list, the cost climbed to around $9 billion by early 2020.

Target stores try to strike a balance between new and innovative and comfortable and warm, Conlin said. In some of its most recent renovations, Target has introduced more warm materials, such as wood siding on its display cases and paneling on its walls.

In the updated stores, Target has experimented within various product categories. In home goods, customers can now find full room setups of furniture and put-together displays of popular lifestyle brands, like Hearth & Hand with Magnolia.

Target created more engaging displays of its own brands and mini stores for partners like Disney and Ulta Beauty. Target plans to open more than 250 additional in-store Ulta Beauty makeup sections by the end of the year.

One of Target's most noticeable pandemic adoptions has been its addition of more efficient ways for customers to pick up orders through its traditional guest services area and via parking lot drive-up.

As it started fresh grocery pick-up in 2020, Target added refrigeration units at the front of stores. Those will continue to be improved with walk-in refrigerators and freezers added to select stores this year.