Behind-the-scenes with Target as it forges ahead with its rebrand.
Wesfarmers, parent company of Target, recently revealed its master plan for the retailer going forward.
The main goals for the retailer – in line with its relaunch internally and externally – are to reduce reliance on the catalogue and apply a stronger messaging on product fashion, style, quality and lower prices.
On its retail network, Target reported that it has to date made the decision made to close 15 stores on expiry of option, with a network review by state also currently underway.
Target confirmed that the plan going forward is to execute the following:
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Open or close stores on basis of market potential
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Focus on optimal store size of 4,500+ square metres
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Continue to optimise store network
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Conversion of Target Country to Target small store format
In regards to its product offering going forward, SKUs are also set to be reduced by 40 per cent by FY16, according to the retailer, with edited ranges for each season.
The role of fashion and styling will increase, with the 'Designers for Target' initiative and collections relaunched in this vein.
Shorter lead times in particular have been identified as “critical” for on-trend fashion styles, with significant progress to be achieved by FY16 through more efficient manufacturing.
Further progress is expected achieved by FY18 through leaner design and shipping processes.
Sourcing strategies for the Target brand are also on track for an overhaul, with the retailer determined to minimise it's “over-reliance” on China to date, in favour of spreading its sourcing net wider.
Target has also flagged changes ahead for its supply chain, with eight temporary storage facilities closed to date and distribution facilities to be reduced progressively from 67 to 22.
The retailer confirmed that the following supply chain systems are to be implemented by Q2 FY16.
Target revealed it will also reinvest back of house savings to fund service improvements and EBA. The retailer is also set to launch a 'Retail Leaders' program to improve its human resources across the board.