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Target “plans to remodel 340 stores, develop a smaller format for urban markets and expand overseas as the retailer pursues growth in the next five to 10 years,” according to a Reuters story.

The Wall Street Journal reports that Target will “pour $1 billion this year into remodeling its existing shops to accelerate a push into groceries. The discount-store chain on Thursday said it will open fewer than 10 new stores in 2010, down from about 60 last year and an average of a 100 a year for the past several years.”

In addition, says, Target executives told an analysts meeting that “it could have a ‘home run’ with its ‘PFresh’ concept, where it is offering an expanded selection of food. It has already seen a lift in sales and traffic at the 108 stores that have been outfitted with the new concept as shoppers snap up the food.”

Target execs also say they are considering an international expansion that would take the company into Canada and/or Latin America, but not for at least three years.
KC's View:
Not to be cynical about this, but...essentially it sounds like Target is adopting the Walmart model. (Even its new commercials seem to be like Walmart’s, except for the slightly higher production values. I was watching one the other night and was convinced it was for Walmart until the tag came on at the end.)

Which isn’t necessarily a bad idea. Though Target does have to figure out what gives its format decisions a differential advantage.