Target to invest $2 billion-$2.5 billion per year to improve supply, technology

The exterior of a Target store is seen in the Chicago suburb of Evanston, Illinois, February 10, 2015. REUTERS/Jim Young Thomson ReutersThe exterior of a Target store is seen in the Chicago suburb of Evanston, Illinois

NEW YORK (Reuters) – Target Corp said on Wednesday it will invest $2-$2.5 billion annually starting 2017, mainly to upgrade its supply chain and technology infrastructure, as it races to reduce stock shortages and pushes for online growth.

The retailer also plans to grow its comparable sales by 3 percent or more annually starting next year and expects a majority of that growth to come from its existing stores and online operations. It expects smaller format stores to contribute to the additional sales.

This year, Target will focus on improving its digital sales performance, which includes online and mobile; localize assortment in stores and open more smaller-format stores in urban markets, Chief Executive Brian Cornell said.

“We laid out a bold multi-year transformation agenda last March…and we’ll be laser focused on those initiatives in 2016,” Cornell told a meeting of analysts in New York.

(Reporting by Nandita Bose in New York; Editing by Andrew Hay)

Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.

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