Target prototype rocks out
Thomas Russell -- Furniture Today, May 13, 2004
MINNEAPOLIS – Target's T-2004 prototype stores that opened in March exceeded sales projections by 20 percent, executives said during the company's first quarter conference call today.
The better-than-expected response resulted in some significant out-of-stocks, but the company has now adjusted its supply chain flow to address the situation, executives said.
"We've found over a period of time it's much easier for us adjust upward rather than overstocking the stores," said Bob Ulrich, chairman and CEO.
According to Gregg Steinhafel, president, the company is "moving quickly to incorporate the essential elements" of the prototype into other stores.
Last fall, Target retrofitted about 80 stores to incorporate elements of T-2004, he added. This year, Target will retrofit 130 additional stores. In addition, by year-end there will be 200 Target stores that fully reflect the prototype, including new units and full remodels.
"It's too preliminary to put too much weight at this time," Steinhafel added, noting the stores have been open for less than two months.
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