) is all set to serve the residents of East Peoria, Illinois, by
opening its first store in the region. The company stated that this
135,000 square feet new offering is slated to open in March 2013
and will employ about 150-200 employees.
The company capitalizes on its extensive network of stores to
effectively penetrate its target markets and gain a competitive
advantage over its rivals and drive sales. Moreover, to enhance the
shopping experience of customers, Target is adapting to the demands
of time and considering consumer-oriented strategies to improve
store sales productivity.
The company is focusing on store renovations and plans to
sustain its remodeling program at existing general merchandise
locations, which include an expanded grocery offering, improved
store layout and enhancement of in-store shopping experience across
departments, such as apparel, home, beauty, shoes and baby.
In order to tap the urban markets where real estate remains a
constraint, Target introduced smaller-format stores called City
Target similar to its biggest rival,
Wal-Mart Stores Inc.
). The company stated that the new stores will vary in size from
60,000 to 100,000 square feet compared to its typical format of
125,000-180,000 square feet.
Moreover, Target is eyeing opportunities in international
markets, such as Canada and Latin America. The company has plans to
open 125 to 135 stores in Canada by 2013 and 2014. We believe,
store openings outside the United States will definitely boost the
company's top and bottom lines and better its cash flow generation
Currently, we have a long-term 'Neutral' rating on the stock.
However, Target, which competes with
Costco Wholesale Corporation
), holds a Zacks #2 Rank, which translates into a short-term 'Buy'
COSTCO WHOLE CP (COST): Free Stock Analysis
TARGET CORP (TGT): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis
To read this article on Zacks.com click here.