- Target is scaling back on store openings and remodels in 2020 and has withdrawn its financial guidance for the year.
- The retailer cited the coronavirus pandemic and a "highly fluid and uncertain outlook for consumer shopping patterns" as the reason for this.
- The chain is part of a pool of US retailers that have benefited more than others from the coronavirus pandemic as customers flock to these stores to stock up with the essentials.
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Target announced Wednesday that is scaling back on planned store remodels and openings in 2020 and withdrawing its financial guidance for the year.
The retailer had previously planned to remodel 300 stores in 2020. According to a statement on Wednesday, 130 stores will now be remodeled in 2020 and the remaining locations will be addressed in 2021.
Moreover, it is slowing the opening of its new smaller-format stores and expects around 15 to 20 to open this year rather than the planned 36.
The company also withdrew its financial guidance for the year, citing "the highly fluid and uncertain outlook for consumer shopping patterns and government policy related to COVID-19" as the reason for this.
Target is part of a pool of US grocery chains and big-box stores in the US that have benefited more than others from the coronavirus pandemic as customers flock to these stores to stock up with the essentials.
As a result of this, the company said it has seen a 50% increase in same-store sales of food and beverage so far in the month of March versus the year before. Sales of apparel and accessories were down 20% in the same period, however.
"Stronger-than-anticipated quarter-to-date sales have led to gross margin dollar growth ahead of prior expectations," the company said Wednesday.
However, it cautioned that: "continued sales declines in higher-margin discretionary categories could result in lower-than-expected gross margin dollar performance for the remainder of the quarter."
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