Target's (NYSE:TGT) stock was sent lower on Tuesday after falling short of its fourth-quarter revenue estimates, while renewed coronavirus fears undercut the stock even more. Executives weren't deterred, however, from publicly laying out its top strategic initiatives for 2020 in a press release posted Tuesday afternoon. The company is going to focus on improved same-day deliveries and pickups, small format stores, remodels, and more improvements to its supply chain.
None of the initiatives were surprises. Speed, for instance, has turned into a key battleground for retailers, most of which are looking for any way to fend off behemoth Amazon.com and push back against Walmart (NYSE:WMT), which has done very well with curbside pickup. Target acquired delivery and shopping service Shipt in 2017, and has used it wisely to offer same-day deliveries in select markets. Meanwhile, sales through the company's Drive Up and Order Pickup services grew more than 500% and almost 50%, respectively, according to the news release.
Small format stores are another way Target has differentiated itself from key competitors. More than 100 of these locations are now up and running, and are doing well because they're locally focused -- an idea that Walmart may not handle as well. Target is planning to open almost three dozen new small format stores in 2020, which will mark the biggest annual growth spurt yet for the initiative.
As for remodels, the company intends to overhaul and update another 300 locations this year as part of a plan to remodel 1,000 stores at a total cost of around $9 billion. These remodels reportedly improve store revenue between 2% and 4%.