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The Minneapolis/St. Paul Business Journal reports that Target has disclosed exactly how much money it is spending to get traction in the e-commerce space.

The story says that "Target's share of capital expenditures for opening new stores and store remodels declined from 58 percent in 2012 to 27 percent in 2014, according to its 10-K annual report. In actual dollars, spending on new stores fell from $673 million in 2012 to $381 million in 2014. Remodeling expenses dropped from $690 million to $99 million during the same period.

"Meanwhile, the Minneapolis retailer increased its annual investment in information technology and distribution from $982 million in 2012 to $1.3 billion in 2014."

It is expected that Target will continue this trend in 2015, and it plans to open just 15 new stores, half of them small format units.

The Journal writes that "the figures highlight Target's move toward an 'omnichannel' shopping experience - one that ties together physical shopping with online and mobile methods. The company in recent months has launched mobile apps, improved shipping capabilities and lowered the threshold for free shipping."
KC's View:
This simply makes sense. Target has to try to get in the game with Amazon, and find some sort of e-parity with Walmart, which is itself spending something like a gazillion dollars in the digital space. If Target is going to be relevant to the next generation of consumers, it has to spend now on building the requisite infrastructure.

So do you.