While digital fulfillment is growing at a rapid pace — three years ago it accounted for about 7% of total Target sales and now it’s more than 10% — Cornell said the company is looking beyond that to satisfy consumer needs no matter how they are purchasing.
“Beyond our assortment, our unique storage operating model offers unmatched flexibility in how we can fulfill guest demand,” said Cornell. “Whether a guest wants to make a conventional in-store shopping trip, place a drive-up order, arrange a Shipt delivery, or simply have a box delivered to their front door, stores can fulfill every one of those needs quickly and reliably, allowing our guests to choose what works best for them in that moment.”
Mulligan said the company is looking at hundreds of fulfillment remodels this year, reconfiguring portions of the store to enhance efficiency, safety, and capacity for drive-up, in-store pickup, and ship-from-store services.
The Future Is Store Transformations and Retail Partnerships
Target is continuing to expand its partnership with Ulta. Announced in 2020, the collaboration has been steadily growing, and the company plans to invest in several hundred locations to add more Ulta shop-in-shops.
According to Christine Hennington, chief growth officer at Target, the beauty segment grew in the high single digits in the second quarter, “reflecting notable strengths in Ulta Beauty at Target.” There’s plenty of room to grow ahead, she said, as the company continues to grow the assortment, bringing in new designer fragrance brands from Coach, Clinique, Kate Spade, and more.
“Of course, we've been rapidly expanding the number of stores that feature an Ulta Beauty at Target, given the incremental traffic and sales they deliver,” said Cornell.
The company is continuing to grow its presence overall, on track to add 24 new locations in 2022. As part of this strategy, Target is undergoing a store remodel program to modernize the shopping experience and enhance staff productivity.
[Read more: Target’s New Times Square Store Showcases Its Flexible New Stores Strategy]
Mulligan said the company is 100 remodels in, with about 100 remodels to go this year. Part of this iniative? Supporting the workforce.
“These investments include the move to a starting hourly wage range of $15 to $24 across the country, enhanced health care, and wellness benefits for a larger percentage of our team; the rollout of an integrating debt-free college educational plan; and our work to enhance the growth and development opportunities available to all of our team members and the team members of color in particular,” said Mulligan.