MINNEAPOLIS, March 3 (UPI) -- Target is planning to cut "several thousand" jobs over the next two years as part of a restructuring to save the retailer $2 billion.
The announcement was made Tuesday during a meeting for Target Corporation investors.
The move is part of Target's plan to focus more on online sales.
"Guests who shop Target in stores and online generate three times the sales compared to guests who shop in stores only," a news release from the company said. "Continued enhancements in technology, supply chain and inventory management will create a shopping experience that is rooted in ease and inspiration. This will help spur Target's continued annual growth in digital channel sales of 40 percent, as well as contribute to a total projected sales growth of 2 to 3 percent and comparable sales growth of 1.5 to 2.5 percent in 2015."
The company said it also plans to tailor the shopping experience to enhance local demographics and climate, as well as increase the number of TargetExpress stores in rapidly growing, dense urban areas.
"While we're in the early days and there's no doubt that transformation can be challenging, we're taking the steps necessary to unleash the potential of this incredible brand," Target CEO Brian Cornell said. "I'm encouraged by our early momentum, and am confident that by implementing our strategy, simplifying how we work, and practicing financial discipline, we will ignite Target's innovative spirit and deliver sustained growth."
Target's stock closed at 78.02 Tuesday, or 0.44 percent up from opening.