(This Oct 29 story corrects fourth paragraph to show Target will roll out 12 more in-house brands before the end of next year, not this year, after Barron’s corrected its story.)
(Reuters) - Target Corp’s (TGT.N) growing focus on online sales and other changes at the U.S. retailer could reward investors, propelling its stock to $75-$80 during the next two years, returning 20 percent to 30 percent, Barron’s reported on Sunday.
The Minneapolis-based discount chain has been making strides to better compete with Amazon.com Inc (AMZN.O), boosting online sales to 4.4 percent of revenue in the latest fiscal year, up from 2.8 percent in fiscal 2016, Barron’s said. That is higher than roughly 3 percent at Wal-Mart Stores Inc (WMT.N), Barron’s said.
Retailers have to price well and provide items that cannot be bought elsewhere in order to beat Amazon, Barron’s reported, citing Ivan Feinseth, chief investment officer at Tigress Financial Partners.
Target recently introduced several exclusive new brands, including its Cat & Jack children’s clothing label, and is rolling out 12 more in-house brands before the end of next year, Barron’s said.
Other plans include trying to get more customers to use its credit and debit card loyalty program, known as REDcard, and focusing on new store formats, such as smaller stores for densely populated areas, Barron’s reported.
Reporting by Suzanne Barlyn; Editing by Sandra Maler