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MINNEAPOLIS -- Target Corp. here will approach $100 billion in sales in 2010, nearly doubling its current size and becoming an even bigger competitive force, projects management consulting and market research firm Retail Forward in a new report on the chain.
Much of Target's sales growth will come from adding about 600 new stores in the next five years, said Columbus, Ohio-based Retail Forward. However, in order to meet its growth goals, Target must follow a multi-pronged approach in the next five years: Open new stores, grow sales at existing stores, get more from existing customers and generate more sales from its online business.
In the recently released report, "Target 2010: Growth and Outlook," Retail Forward assesses Target's outlook and provides key insights into the company's growth challenges and opportunities. It said expansion opportunities remain, for now, for the chain, but after 2010, Retail Forward's market saturation analysis indicates that Target will need to look beyond the biggest metro areas for growth.
Raising store productivity and shopping frequency should help Target get more sales out of existing stores, Retail Forward said. Moving toward 2010, Target remains challenged to raise year-to-year store productivity levels in order to meet growth objectives, and it needs to figure out how to convert monthly shoppers into more frequent shoppers.
Target will need to maintain its focus on brand management, new categories and new processes as well as continue to develop well-executed marketing, merchandising and multi-channel initiatives, the research and consulting firm said.
In order for the $100 billion mark to be within its grasp by 2010, Target will need to be in more geographies, grab increasing share in more categories and take sales from other competitors and channels. Apparel and accessory stores, drug stores, supermarkets and department stores should be on guard.