The goal is to close two of its San Francisco Bay Area locations this summer, despite the company’s tremendous growth as the pandemic progresses.
One location on Ocean Avenue in San Francisco and Stevens Creek Boulevard in Cupertino will be closed on June 26th. However, all eligible team members are given the opportunity, according to the company, to switch to different stores in the area.
|TGT||TARGET CORP.||208.55||+2.79||+ 1.36%|
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
“The decision to close a deal is always difficult,” Target told FOX Business in a statement. However, the decision comes after “a rigorous annual process to evaluate the performance of each business in the portfolio and to maintain the overall health of the business,” the company said.
Shoppers wear protective masks in a Target Corp store on Saturday, Aug. 15, 2020. in New York, USA. (Jeenah Moon / Bloomberg via Getty Images)
The closings come after a year the big box store thrived despite the swirling retail environment that forced many of its competitors to close.
The stock has gained 108% over the past 12 months.
Get FOX BUSINESS on the go by clicking here
Target extended its sales streak through the vacation quarter, and sales rose more than $ 15 billion. This has exceeded the company’s annual sales growth over the past 11 years combined.
Online sales rose nearly $ 10 billion last year as the habits of millions changed due to the spread of the highly contagious virus. Fourth quarter earnings rose 66% and revenue 21%, both of which exceeded Wall Street’s expectations.
To keep up with increased demand, the company announced plans to not only refresh its stores, but add new ones as well.
GOAL FOR THE OPENING OF MINI APPLE STORES IN SELECTED LOCATIONS
Although the company is closing two locations, it will expedite the construction of small-format stores and plans to add 30 to 40 new stores this year.
This is an increase from just 29 last year. Target will also accelerate the pace of its Store Remodel program. This year 150 stores will be rebuilt and 200 stores the following year.
The Associated Press contributed to this report.