Target ramps up spending on supply chain
NEW YORK (AP) — Target Corp. is stepping up spending on capital expenditures this year, primarily in supply network and technology, as the retailer aims to be more nimble in an era of online shopping.
The Minneapolis-based discounter told analysts Wednesday it plans to spend $1.8 billion for the current year and ramp that up next year to up to $2.5 billion. In the last fiscal year ended in January, the company spent $1.4 billion in capital expenditures.
The spending comes as Target, like other retailers, has been challenged with an infrastructure that has been stretched with shoppers buying in different ways. That has left Target struggling to keep basic products on the shelves.
Target also sees a key revenue measure increase at a faster clip for next year and beyond.