Target ramps up spending on supply network

NEW YORK (AP) — Target Corp. is stepping up spending on capital expenditures, primarily in its supply network and technology, as the retailer aims to be more nimble in an era of online shopping.

The company is also shifting more of its spending from physical stores to online investments and its supply network.

Target recorded its sixth straight quarter of increases for the key revenue measure in its most recent quarter and posted an uptick in customer traffic for the fifth quarter in a row.

[...] Target had to step up discounting that squeezed profit margins during the holiday quarter.

Cornell said that he is confident that Target's sales pace will improve as the company keeps pushing out new brands and sees the efforts of its better presentations attract shoppers.

[...] Target is launching another brand called Cat + Jack, a children's clothing line that he sees could have the potential for being a multibillion-dollar business and grow twice as fast as the industry average.

[...] overhauling the supply network is an essential part of Target's reinvention as it can lose sales by not having products that shoppers want.

John Mulligan, Target's chief operating officer, told analysts Wednesday that the number of Target.com orders that its customers chose to pick up at the store rose 60 percent last year, compared to the year before.