Five shifts in focus aim to bring shoppers ‘affordable joy’ through convenience and cost as CEO talks ‘spiral inflation’

TARGET is focused on changes that bring customers “affordable joy”, the company’s CEO revealed.

Target CEO Brian Cornell said on a fourth-quarter earnings call on Tuesday that the company beat expectations in the fourth quarter of 2022.

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Target posted revenue of $31.4 billion in the fourth quarter.

This exceeded forecast revenue by $30.46 billion.

Cornell addressed the company’s successes and also shared its future plans on the call.

“Although consumers have begun to adopt post-pandemic behaviors… The spiraling inflation has forced families to suspend discretionary shopping and focus most of their spending on basic necessities,” Cornell said.

“There’s been a rapid escalation to the most expensive operating environment we’ve seen in decades.

“Giving value is absolutely paramount right now. Being able to deliver affordable joy sets us apart in the market.

“And that’s a clear short-term benefit and that remains our long-term goal.”

Cornell said on the call that the company is “not standing still” when it comes to store renovations, expansion plans and investments in a larger supply chain.

He added that the company will continue to invest in stores and continuously improve its digital offerings in the coming months.

On the brand side, Cornell highlighted existing successful brand partnerships, including those with Starbucks, Apple and Ulta Beauty.

Cornell also shared that the company is “not slowing down” when it comes to its own brands.

Target has added 17 of its own brands since 2019, according to the CEO.

Cornell also pointed out that Target’s digital business has nearly tripled since 2019.

As a result, customers may continue to see more curbside pickup options when shopping.

“Going forward, we are focused on executing our long-term strategy, including continued differentiation through affordability, assortment, ease and convenience,” Cornell said.

“At the same time, we are carefully planning our short-term business to ensure we remain agile and responsive to the current operating environment.”