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Target takes aim at in-store, E-Commerce, and fulfillment improvements

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It's no secret that Target has been making waves and posting record numbers before and even during the COVID-19 pandemic. To reflect the retailer's recent years of sales growth, and a record breaking 2020, the corporation has announced a lofty new financial plan to keep the ball rolling.

Target plans to begin setting aside around $4 billion annually for the next few years, to accelerate the development of new stores and remodel existing locations. Part of this budget will also go toward improvements to both Target's E-Commerce capability and fulfillment services. Michael Fiddelke, CFO of Target, had this to say about the recent announcement:

“2020 was a record-breaking year thanks to the work of our team and their commitment to serving our guests amidst unprecedented demand. As we head into 2021, we are building on the aspects of our differentiated model that make Target the preferred one-stop-shop for millions of guests.”

Enhanced partnerships

The new financial allocation surfaced among several early 2021 announcements from Target. One of which is the addition of yet another big name to its list of enhanced in-store shopping experiences: Apple. After finding success with brands like Disney, Ulta Beauty, and Levi Strauss & Co., Target has moved to bestow more in-store real estate upon the tech giant, and will even have special Apple trained associates to guide customers through the enlarged section.

E-Commerce & Fulfillment

In addition to adding new stores and speeding along remodels, Target has stated that some of the new budget will be allocated to growing E-Commerce functionality like delivery and pick up. Target emphasized plans to scale the company's last-mile and replenishment capabilities, as well as projecting the opening of five more of its 'sortation centers' this year. In short, this means pulling the sorting activity out of store backrooms and consolidating it at one facility, which allows store teams to more efficiently fulfill online orders, and reduces the load on external carriers.

In-store vs. Online

Online shopping may be the preferred way to shop for many, but plenty of people still prefer the in-person shopping experience. Holding an item in your hand or trying on apparel isn't possible online which can prevent customers from pulling the trigger on a purchase. What do you think about Target’s decision to invest in brick-and-mortar experiences? Is the company smart to continue growing their physical presence while others focus more on E-Commerce? Let us know what you think! Email us: or give us a call: (303) 536-5505.


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