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Target Aims for $100 Billion, with Suppliers' Help Dec 26, 2006 |
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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.
Supplier Implications
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.