Retail chain Target will approach U.S. $100 billion in sales in 2010, nearly doubling its current size and becoming a much more substantial competitive force, according to projections from market research firm Retail Forward. Much of Target's sales growth will come from adding about 600 new stores in the next 5 years, but it must also grow sales at existing stores, get more from existing customers and generate more sales from its online business.
In the recent report, Target 2010: Growth and Outlook, the research firm points out what it says are the company's growth challenges and opportunities. The retailer needs to figure out how to convert monthly shoppers into more frequent shoppers.
"During the next five years, expect to see Target boost its multi-channel efforts, further strengthen its customer loyalty programs, and continue to push the envelope with buzzworthy marketing efforts that convey the retailer's uniqueness," said Jennifer Halterman, Retail Forward consultant and author of the report.
Target will need to grab increasing share in more categories and take sales from other competitors and channels.
"Suppliers could hit the bull's-eye by teaming with Target to grow their businesses," she continues. "Suppliers wanting to work with Target or protect their positions need to look for ways to spot trends quickly, deliver the unique and different, design store-specific strategies and provide shopper insights," Halterman concluded.
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