Target focuses on strategic growth
MINNEAPOLIS Target is set to outline its growth opportunities for the next five to 10 years during a meeting Thursday with members of the financial community.
Target said that during its financial community meeting, held in Philadelphia, the company will address the following initiatives:
- Continued growth within existing stores, which will be achieved through a substantial store remodel effort. Target expects to invest approximately $1 billion in the renovation of about 340 existing stores in 2010, incorporating a variety of new merchandise initiatives, including expanded grocery content in general merchandise stores; and enhanced layout, assortment, and in-store experience in a variety of other merchandise areas including beauty, home, electronics and video games.
- New construction of traditional Target store formats in existing trade areas. Target’s plans include fewer than 10 additional locations in 2010, net of closings and relocations, with the opportunity to increase that number in 2011 and beyond. The exact number and pace of these new store openings beyond this year will depend on a number of factors, including the economic and real estate environment, as well as internal operational performance.
- Development of a smaller store format with an edited merchandise assortment which meets the needs of guests in dense urban markets, and fits within the real estate constraints of these areas. Target plans to test this concept within the next few years.
- Expansion outside the United States, with initial growth most likely in Canada, Mexico or Latin America beyond a 3- to 5-year horizon.
“As we approach each of these growth opportunities, Target will apply the same rigorous financial discipline that we have applied historically, ensuring a returns-based approach and the prudent use of capital,” said Gregg Steinhafel, chairman, president and CEO of Target. “We are excited about the growth potential for Target and believe we have the capital, talent, and right blend of discipline and innovation to deliver meaningful value to our guests and shareholders.”
NCR brings DVD kiosks to Brookshire Grocery
DULUTH, Ga. NCR is gearing up to install Blockbuster Express-branded DVD-rental kiosks in a regional grocery store chain.
The kiosks will be installed in Brookshire Grocery stores throughout Texas, Louisiana, Arkansas and Mississippi. NCR anticipates fully deploying to the chain within the first three months of 2010.
NCR’s kiosks hold more than 900 DVDs, giving customers a great choice of new releases and classic titles. NCR began deploying Blockbuster Express kiosks in Brookshire Grocery in 2009, with about 100 kiosks installed at the chain at the end of the year.
“For more than 80 years, Brookshire Grocery has strived to give our customers a great shopping experience. Through our new relationship with NCR, we are able to give our customers the convenience and savings associated with BLOCKBUSTER Express DVD rentals,” said Don Gaynier, Brookshire Grocery. “We considered many of the leading DVD kiosk providers, and we were most impressed with NCR’s rapid growth in the space.”
No membership is required to rent a DVD at a Blockbuster Express kiosk – customers simply swipe their credit card and are charged $1 per night until they return the DVD. For a full list of titles available through Blockbuster Express kiosks, visit www.blockbusterexpress.com.
CVS/pharmacy’s ExtraCare cardholders save big in 2009
WOONSOCKET, R.I. CVS/pharmacy announced Tuesday that ExtraCare cardholders received a combined total of more than $1.9 billion in savings and rewards throughout 2009.
In addition, the pharmacy retailer kicked off on Jan. 17 a special promotion, dubbed “I Heart My Double Bucks!” The promotion offers double Extra Bucks rewards to customers purchasing prescriptions and CVS/pharmacy brand health, household, beauty and personal care products. By presenting a Double Bucks certificate along with their ExtraCare card in-store or by signing up for the offer online, shoppers will earn twice the amount of Bucks with $2 Extra Bucks for every two prescriptions filled and will earn 4% back on all CVS/pharmacy brand purchases instead of the usual 2%. Shoppers who sign up for Double Bucks will earn 4% back when purchasing any CVS/pharmacy brand product.
In the final quarter of 2009 alone, ExtraCare cardholders earned a total of $76 million in savings. With more than 62 million active cardholders, CVS/pharmacy’s ExtraCare Rewards program remains the largest retail loyalty program in the United States.
Seniors led the charge as the fastest growing demographic of rewards program users with more than 7.3 million to date and growing. Meanwhile, Los Angeles took the lead as the community with the highest number of Extra Bucks in the last three months of 2009 with shoppers there earning more than $6.5 million.
The program itself saw an increase of 10 million active card users from December 2008 to December 2009. Both the number of men and women who signed up for a card increased substantially, growing by 8.7% and 7.9%, respectively, since last year.
“In 2009, Americans continued to cut costs and look for new ways to help stretch their dollar,” stated Bari Harlam, VP marketing for CVS/pharmacy. “Through our ExtraCare loyalty program, we were able to deliver real value to CVS/pharmacy customers consistently throughout the year. In 2010 we’re raising the bar even higher for ExtraCare members as we focus on providing additional savings on the products our customers need and value most like prescriptions and over-the-counter medications.”