Steinhafel: Target on Track for $100 Billion Annual Sales
MINNEAPOLIS-Target is in gear to achieve its goal of $100 billion in annual sales by 2017, according to Gregg Steinhafel, chairman, president and CEO.
Speaking on Wednesday at the retailer's annual shareholders meeting, Steinhafel told the attendees that Target's financial results for its most recent fiscal year, plus its results for this year's first quarter, show that "we are on the right track" to reaching that annual sales goal. For fiscal 2011, Target recorded net sales of $68.5 billion, up 4.1 percent from the prior year and including a 3 percent increase in same-store sales. In the first quarter of the current fiscal year, Target posted a sales gain of 6.1 percent to $16.5 billion, including a same-store sales rise of 5.3 percent.
Steinhafel said that to reach the $100 billion sales goal in the next five years, the company needed to average a 3 percent comparable-store increase per year.
He went on to summarize some of Target's key strategic initiatives down the road. Next month, Steinhafel said, the company will open its first CityTargets, the new smaller format, in Chicago, Los Angeles and Seattle. This fall, a second CityTarget in Los Angeles is scheduled to open, along with one in San Francisco. Next year, a third Los Angeles location will open, along with one in Portland, Ore.
Other initiatives include continuing investments in target.com to create features and tools that focus on value and to increase site stability and usability. Also, Target's first store in Canada is scheduled open in spring 2013, and the company is currently building three distribution centers and establishing relationships with the vendor community north of the border.