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Target's Rural Expansion Plan - Experts Call It a "Strategic Disaster" That Shouldn't Have Happened · Omni Talk Retail

• 0:00
  Wrap
• 0:00
  this
• 0:00
  show
• 0:00
  up.
• 0:01
  It's
• 0:01
  already
• 0:01
  been
• 0:01
  so
• 0:02
  great.
• 0:02
  Target
• 0:03
  has
• 0:03
  unveiled
• 0:04
  a
• 0:04
  new
• 0:04
  small
• 0:05
  town
• 0:05
  store
• 0:06
  expansion
• 0:06
  strategy.
• 0:07
  According
• 0:07
  to
• 0:07
  Modern
• 0:08
  Retail,
• 0:08
  the
• 0:08
  Minneapolis
• 0:09
  based
• 0:09
  company
• 0:09
  is
• 0:10
  increasingly
• 0:10
  focusing
• 0:11
  on
• 0:11
  full
• 0:11
  size
• 0:12
  store
• 0:12
  development
• 0:12
  in
• 0:13
  smaller
• 0:13
  markets
• 0:13
  in
• 0:13
  rural
• 0:14
  communities,
• 0:14
  a
• 0:15
  departure
• 0:15
  from
• 0:15
  its
• 0:16
  previous
• 0:16
  emphasis
• 0:17
  on
• 0:17
  small
• 0:17
  format
• 0:18
  urban
• 0:18
  locations
• 0:20
  that
• 0:20
  dominated
• 0:20
  its
• 0:21
  expansion
• 0:21
  narrative
• 0:22
  from
• 0:22
  2016
• 0:22
  to
• 0:23
  2021.
• 0:23
  Almost
• 0:24
  all
• 0:24
  of
• 0:24
  Target's
• 0:25
  plan
• 0:25
  stores
• 0:25
  are
• 0:25
  set
• 0:25
  to
• 0:26
  exceed
• 0:26
  100,000
• 0:27
  square
• 0:27
  feet,
• 0:28
  supporting
• 0:28
  the
• 0:28
  company's
• 0:29
  quote
• 0:29
  stores
• 0:30
  as
• 0:30
  hubs
• 0:30
  quote
• 0:31
  fulfillment
• 0:32
  strategy
• 0:32
  that
• 0:33
  has
• 0:33
  become
• 0:33
  central
• 0:33
  to
• 0:34
  its
• 0:34
  omnichannel
• 0:34
  operations
• 0:35
  since
• 0:35
  2017.
• 0:36
  Target's
• 0:37
  growth
• 0:37
  ambitions
• 0:38
  remain
• 0:38
  robust
• 0:38
  with
• 0:39
  plans
• 0:39
  to
• 0:39
  open
• 0:39
  approximately
• 0:40
  300
• 0:41
  new,
• 0:42
  predominantly
• 0:42
  full
• 0:43
  size
• 0:43
  stores
• 0:44
  over
• 0:44
  the
• 0:44
  next
• 0:44
  decade.
• 0:45
  The
• 0:45
  retailer
• 0:46
  opened
• 0:46
  23
• 0:46
  locations
• 0:47
  in
• 0:47
  2024
• 0:48
  and
• 0:48
  has
• 0:48
  scheduled
• 0:49
  about
• 0:49
  20
• 0:49
  new
• 0:50
  openings
• 0:50
  for
• 0:50
  2025,
• 0:51
  according
• 0:51
  to
• 0:52
  its
• 0:52
  most
• 0:52
  recent
• 0:53
  annual
• 0:53
  report.
• 0:54
  Well,
• 0:54
  Target
• 0:55
  already
• 0:55
  reaches
• 0:55
  roughly
• 0:56
  75%
• 0:56
  of
• 0:57
  Americans
• 0:57
  within
• 0:58
  a
• 0:58
  10
• 0:58
  mile
• 0:58
  radius.
• 0:59
  As
• 0:59
  CEO
• 1:00
  Michael
• 1:00
  Fidelke
• 1:01
  noted
• 1:01
  in
• 1:01
  March,
• 1:01
  this
• 1:02
  still
• 1:02
  trails
• 1:02
  Walmart's
• 1:03
  impressive
• 1:04
  90%
• 1:04
  proximity
• 1:05
  metric.
• 1:06
  Christisa,
• 1:07
  we're
• 1:07
  going
• 1:07
  to
• 1:07
  go
• 1:07
  to
• 1:07
  you
• 1:08
  first
• 1:08
  on
• 1:08
  this.
• 1:08
  Do
• 1:09
  you
• 1:09
  agree
• 1:09
  that
• 1:09
  Target
• 1:10
  will
• 1:10
  find
• 1:10
  profitable
• 1:11
  growth
• 1:11
  by
• 1:11
  expanding
• 1:11
  into
• 1:12
  rural
• 1:12
  markets?
• 1:13
  I
• 1:13
  know
• 1:13
  you
• 1:13
  have
• 1:13
  a
• 1:13
  hot
• 1:14
  take
• 1:14
  on
• 1:14
  this
• 1:14
  one
• 1:14
  yourself.
• 1:15
  So
• 1:15
  as
• 1:16
  bullish
• 1:16
  as
• 1:16
  I
• 1:16
  was
• 1:16
  about
• 1:17
  target
• 1:17
  360,
• 1:18
  I
• 1:18
  think
• 1:18
  the
• 1:18
  jury's
• 1:19
  out
• 1:19
  for
• 1:19
  me
• 1:19
  on
• 1:20
  this
• 1:20
  one.
• 1:20
  I
• 1:20
  think
• 1:21
  a
• 1:21
  couple
• 1:21
  things
• 1:21
  that
• 1:21
  I've
• 1:22
  been
• 1:22
  thinking
• 1:22
  about.
• 1:22
  One
• 1:23
  is,
• 1:23
  you
• 1:23
  know,
• 1:24
  when
• 1:24
  you
• 1:24
  think
• 1:24
  about,
• 1:26
  you
• 1:26
  know,
• 1:26
  store
• 1:26
  expansion,
• 1:27
  you
• 1:27
  know,
• 1:28
  specifically
• 1:28
  Target
• 1:29
  in
• 1:29
  rural
• 1:29
  markets,
• 1:30
  it
• 1:30
  really
• 1:30
  for
• 1:31
  me
• 1:31
  is
• 1:31
  location
• 1:31
  specific.
• 1:32
  Does
• 1:33
  a
• 1:33
  Target
• 1:33
  store
• 1:33
  fill
• 1:34
  the
• 1:34
  need
• 1:35
  for
• 1:35
  a
• 1:35
  consumer
• 1:35
  in
• 1:36
  that
• 1:36
  market
• 1:36
  or
• 1:36
  is
• 1:36
  it
• 1:36
  another
• 1:37
  Choice
• 1:37
  to
• 1:37
  Walmart,
• 1:38
  etc.
• 1:38
  Now
• 1:39
  if
• 1:39
  they're
• 1:39
  looking
• 1:39
  at
• 1:39
  it
• 1:40
  to
• 1:40
  say,
• 1:40
  okay,
• 1:40
  this
• 1:41
  is
• 1:41
  going
• 1:41
  to
• 1:41
  be
• 1:41
  a
• 1:41
  superstore
• 1:42
  and
• 1:42
  we
• 1:42
  can
• 1:42
  pull
• 1:43
  inventory
• 1:43
  and
• 1:43
  speed
• 1:43
  up
• 1:44
  our
• 1:44
  fulfillment
• 1:45
  in
• 1:46
  some
• 1:46
  of
• 1:46
  these
• 1:46
  markets
• 1:46
  because
• 1:47
  we
• 1:47
  all
• 1:47
  know
• 1:47
  that
• 1:47
  fulfillment
• 1:48
  times
• 1:48
  are
• 1:49
  lower
• 1:50
  or
• 1:51
  they're
• 1:51
  slower,
• 1:51
  I
• 1:52
  should
• 1:52
  say,
• 1:52
  for
• 1:53
  some
• 1:53
  of
• 1:53
  these
• 1:53
  customers,
• 1:53
  then
• 1:54
  that
• 1:54
  could
• 1:54
  be
• 1:54
  a
• 1:54
  really
• 1:54
  good
• 1:55
  thing.
• 1:55
  But
• 1:55
  again,
• 1:56
  it
• 1:56
  really
• 1:56
  comes
• 1:56
  down
• 1:56
  to
• 1:57
  each
• 1:57
  market,
• 1:58
  each
• 1:58
  specific
• 1:59
  market
• 1:59
  and
• 1:59
  what
• 2:00
  is
• 2:00
  the
• 2:00
  real
• 2:00
  need.
• 2:01
  You
• 2:01
  know,
• 2:01
  funny
• 2:02
  story,
• 2:02
  you
• 2:02
  know,
• 2:03
  Kmart,
• 2:03
  I
• 2:03
  don't
• 2:03
  know
• 2:03
  if
• 2:04
  you
• 2:04
  guys
• 2:04
  know
• 2:04
  this.
• 2:04
  One
• 2:04
  of
• 2:05
  the
• 2:05
  last
• 2:05
  stores
• 2:06
  was
• 2:06
  in
• 2:06
  the
• 2:07
  Hamptons,
• 2:07
  you
• 2:08
  know,
• 2:08
  at
• 2:08
  the
• 2:08
  eastern
• 2:08
  end
• 2:08
  of
• 2:09
  Long
• 2:09
  Island.
• 2:09
  And
• 2:10
  now
• 2:10
  Target
• 2:10
  is
• 2:11
  actually
• 2:11
  filling
• 2:11
  the
• 2:11
  space.
• 2:12
  So
• 2:12
  while
• 2:13
  affluent,
• 2:13
  it
• 2:14
  is
• 2:14
  also,
• 2:15
  it
• 2:15
  is
• 2:15
  also
• 2:15
  rural.
• 2:16
  So
• 2:17
  as
• 2:17
  I
• 2:17
  think
• 2:17
  about,
• 2:17
  you
• 2:18
  know,
• 2:18
  yacht
• 2:18
  rock
• 2:19
  and
• 2:19
  white
• 2:19
  pants,
• 2:19
  et
• 2:20
  cetera,
• 2:20
  going
• 2:20
  into
• 2:20
  Memorial
• 2:21
  Day,
• 2:21
  I
• 2:22
  know
• 2:22
  a
• 2:22
  bunch
• 2:22
  of
• 2:22
  people
• 2:23
  out
• 2:23
  there
• 2:23
  are
• 2:23
  very
• 2:24
  in
• 2:24
  rose.
• 2:25
  I
• 2:25
  know
• 2:25
  a
• 2:25
  bunch
• 2:25
  of
• 2:26
  folks
• 2:26
  and
• 2:26
  consumers
• 2:27
  are
• 2:27
  super
• 2:28
  excited
• 2:28
  that
• 2:29
  Target
• 2:29
  is
• 2:29
  coming
• 2:29
  to
• 2:30
  fulfill
• 2:30
  that
• 2:30
  need.
• 2:30
  But
• 2:31
  again,
• 2:31
  that
• 2:31
  is
• 2:32
  a
• 2:32
  market
• 2:32
  specific
• 2:33
  opportunity
• 2:34
  that
• 2:34
  may
• 2:34
  not
• 2:35
  translate
• 2:35
  across
• 2:35
  the
• 2:36
  country.
• 2:37
  Okay.
• 2:37
  Michael,
• 2:38
  what
• 2:38
  about
• 2:39
  you?
• 2:39
  Yeah,
• 2:40
  I
• 2:40
  think
• 2:40
  this
• 2:41
  is
• 2:41
  another
• 2:41
  one
• 2:41
  that
• 2:42
  I,
• 2:42
  it
• 2:43
  probably
• 2:43
  didn't
• 2:43
  come
• 2:43
  up
• 2:43
  in
• 2:43
  the
• 2:44
  innovation
• 2:44
  lab
• 2:45
  Target
• 2:46
  but
• 2:46
  it
• 2:46
  probably
• 2:46
  should
• 2:46
  have
• 2:47
  never
• 2:47
  made
• 2:47
  it
• 2:47
  out
• 2:47
  of
• 2:48
  the
• 2:48
  C
• 2:49
  level
• 2:49
  strategic
• 2:50
  planning
• 2:50
  meetings
• 2:51
  and
• 2:51
  or
• 2:52
  approve
• 2:52
  approval
• 2:53
  for
• 2:53
  the
• 2:53
  spend
• 2:54
  by
• 2:54
  the
• 2:54
  board.
• 2:55
  Give
• 2:55
  us
• 2:55
  your
• 2:56
  reasons.
• 2:56
  Yeah,
• 2:56
  the
• 2:57
  challenge
• 2:57
  I
• 2:57
  have
• 2:57
  with
• 2:57
  this
• 2:58
  is
• 2:59
  I
• 2:59
  like,
• 2:59
  I
• 2:59
  like
• 2:59
  Chris's
• 3:01
  example
• 3:01
  of
• 3:02
  a
• 3:03
  Target
• 3:03
  going
• 3:03
  in
• 3:03
  near
• 3:04
  the
• 3:04
  Hamptons
• 3:04
  but
• 3:05
  clearly
• 3:05
  that's
• 3:05
  not
• 3:06
  very
• 3:06
  rural.
• 3:07
  The
• 3:07
  rural
• 3:08
  markets
• 3:09
  are
• 3:09
  a
• 3:09
  challenge
• 3:10
  and
• 3:10
  all
• 3:10
  you
• 3:10
  got
• 3:10
  to
• 3:11
  do
• 3:11
  for
• 3:11
  the
• 3:11
  template
• 3:12
  of
• 3:12
  the
• 3:12
  challenge
• 3:12
  is
• 3:12
  look
• 3:12
  at
• 3:13
  Dollar
• 3:13
  Tree.
• 3:13
  Right.
• 3:14
  I
• 3:14
  mean
• 3:15
  that
• 3:16
  story
• 3:16
  has
• 3:17
  been
• 3:17
  written,
• 3:17
  the
• 3:17
  outcome
• 3:18
  is
• 3:18
  written
• 3:18
  and
• 3:18
  it's
• 3:19
  not
• 3:19
  successful.
• 3:20
  I
• 3:20
  also
• 3:21
  think
• 3:22
  Target
• 3:22
  is
• 3:23
  best
• 3:24
  when
• 3:24
  they
• 3:24
  are
• 3:25
  sort
• 3:25
  of
• 3:25
  the
• 3:25
  antidote
• 3:26
  to
• 3:26
  Walmart.
• 3:27
  Like
• 3:27
  when
• 3:28
  Target
• 3:28
  is
• 3:28
  Walmart
• 3:30
  need
• 3:30
  Target,
• 3:30
  you
• 3:31
  have
• 3:31
  Walmart
• 3:31
  and
• 3:31
  Walmart
• 3:32
  is
• 3:32
  fantastic
• 3:33
  at
• 3:33
  it.
• 3:33
  Target
• 3:33
  has
• 3:33
  always
• 3:34
  been
• 3:34
  a
• 3:35
  step,
• 3:35
  maybe
• 3:36
  two,
• 3:36
  maybe
• 3:36
  three
• 3:37
  above
• 3:37
  Walmart.
• 3:38
  It's
• 3:39
  still
• 3:39
  sort
• 3:39
  of
• 3:39
  similar
• 3:40
  but
• 3:40
  it's
• 3:40
  always
• 3:40
  been
• 3:41
  going
• 3:42
  back
• 3:42
  to
• 3:42
  the
• 3:42
  ads
• 3:43
  in
• 3:43
  the,
• 3:43
  the
• 3:43
  early
• 3:43
  2000s.
• 3:44
  Target,
• 3:45
  not
• 3:46
  target.
• 3:47
  So
• 3:47
  it
• 3:47
  was
• 3:47
  a
• 3:47
  great
• 3:48
  access
• 3:48
  point
• 3:49
  but
• 3:49
  it
• 3:49
  provided
• 3:50
  a
• 3:50
  different
• 3:50
  experience
• 3:50
  in
• 3:51
  my
• 3:51
  opinion
• 3:51
  than
• 3:51
  Walmart.
• 3:52
  So
• 3:52
  if
• 3:52
  they're
• 3:53
  looking
• 3:53
  to
• 3:53
  expand
• 3:54
  and
• 3:54
  if
• 3:54
  you
• 3:54
  read
• 3:54
  between
• 3:55
  the
• 3:55
  lines
• 3:55
  that's
• 3:55
  basically
• 3:56
  what
• 3:56
  they're
• 3:56
  saying
• 3:56
  is
• 3:57
  we
• 3:57
  want
• 3:57
  to
• 3:57
  go
• 3:57
  more
• 3:57
  head
• 3:58
  to
• 3:58
  head
• 3:58
  with
• 3:58
  Walmart.
• 3:59
  I
• 3:59
  think
• 3:59
  that's
• 3:59
  a
• 3:59
  strategic
• 4:00
  error.
• 4:01
  They
• 4:01
  need
• 4:01
  to
• 4:01
  really
• 4:02
  separate
• 4:02
  themselves,
• 4:03
  do
• 4:03
  what
• 4:03
  they
• 4:04
  do
• 4:04
  best
• 4:05
  and
• 4:05
  is
• 4:05
  putting
• 4:06
  a
• 4:06
  Target
• 4:07
  in
• 4:07
  a
• 4:07
  rural
• 4:08
  market
• 4:08
  and
• 4:09
  I
• 4:09
  think
• 4:09
  of
• 4:09
  a
• 4:10
  place
• 4:10
  where
• 4:10
  we
• 4:10
  go
• 4:10
  on
• 4:11
  vacation
• 4:11
  sometimes
• 4:12
  in
• 4:12
  the
• 4:12
  summer
• 4:12
  up
• 4:12
  in
• 4:13
  rural
• 4:13
  Maine
• 4:14
  there's
• 4:14
  a
• 4:14
  dollar
• 4:14
  general.
• 4:15
  Are
• 4:15
  they
• 4:15
  going
• 4:16
  to
• 4:16
  put
• 4:16
  a
• 4:16
  Target
• 4:16
  near
• 4:16
  there?
• 4:17
  That's
• 4:17
  never
• 4:17
  going
• 4:17
  to
• 4:17
  work.
• 4:18
  So
• 4:19
  I
• 4:19
  think
• 4:19
  it's
• 4:19
  really,
• 4:20
  it's
• 4:21
  interesting
• 4:22
  but
• 4:23
  without
• 4:24
  a
• 4:24
  well
• 4:24
  thought
• 4:24
  out
• 4:25
  plan
• 4:26
  and
• 4:26
  to
• 4:26
  Chris's
• 4:27
  point,
• 4:28
  very
• 4:28
  strategic
• 4:31
  placement
• 4:32
  in
• 4:32
  demographic
• 4:33
  areas
• 4:33
  that
• 4:34
  can
• 4:34
  support
• 4:34
  it.
• 4:35
  It's
• 4:35
  not
• 4:35
  going
• 4:36
  to
• 4:36
  work.
• 4:36
  Yeah,
• 4:37
  I
• 4:37
  would
• 4:37
  agree
• 4:37
  with
• 4:37
  you
• 4:38
  Michael.
• 4:38
  If
• 4:38
  we
• 4:38
  were
• 4:38
  talking
• 4:39
  old
• 4:39
  Target,
• 4:40
  I
• 4:40
  think
• 4:41
  now
• 4:41
  you
• 4:41
  have
• 4:41
  to
• 4:41
  look
• 4:42
  at
• 4:42
  current
• 4:42
  Target
• 4:43
  and
• 4:43
  when
• 4:44
  you
• 4:44
  put
• 4:44
  it
• 4:44
  up
• 4:44
  against
• 4:45
  a
• 4:45
  Walmart
• 4:45
  I
• 4:46
  don't
• 4:46
  think
• 4:46
  it
• 4:46
  provides
• 4:47
  the
• 4:47
  same
• 4:48
  like
• 4:48
  Walmart's
• 4:49
  come
• 4:49
  so
• 4:49
  far
• 4:50
  and
• 4:50
  improved.
• 4:50
  It's
• 4:51
  especially
• 4:51
  the
• 4:52
  new
• 4:52
  locations
• 4:52
  of
• 4:53
  Walmarts
• 4:53
  that
• 4:53
  they're
• 4:53
  going
• 4:54
  to
• 4:54
  be
• 4:54
  building
• 4:54
  as
• 4:54
  well
• 4:54
  in
• 4:55
  these
• 4:55
  rural
• 4:55
  communities
• 4:56
  like
• 4:56
  their,
• 4:57
  their
• 4:57
  store
• 4:58
  formats
• 4:58
  I
• 4:58
  think
• 4:59
  are
• 4:59
  comparable
• 4:59
  and
• 5:00
  if
• 5:00
  not
• 5:00
  better
• 5:01
  than
• 5:01
  Target.
• 5:02
  Plus
• 5:02
  I
• 5:02
  think
• 5:02
  you
• 5:02
  hit
• 5:03
  a
• 5:03
  lower
• 5:03
  price
• 5:03
  point.
• 5:04
  It
• 5:04
  gets
• 5:04
  back
• 5:04
  to
• 5:04
  what
• 5:04
  we
• 5:05
  talked
• 5:05
  about
• 5:05
  in
• 5:05
  the
• 5:05
  first
• 5:06
  headline
• 5:06
  of
• 5:07
  you
• 5:07
  know,
• 5:07
  you're
• 5:08
  going
• 5:08
  to
• 5:08
  get
• 5:08
  the
• 5:08
  everyday
• 5:09
  low
• 5:09
  price
• 5:09
  at
• 5:09
  Walmart.
• 5:10
  And,
• 5:10
  and
• 5:10
  there's
• 5:10
  no
• 5:11
  way
• 5:11
  Target
• 5:11
  can
• 5:11
  beat
• 5:12
  Walmart
• 5:12
  on
• 5:12
  price.
• 5:13
  And
• 5:13
  so
• 5:13
  what,
• 5:14
  what
• 5:14
  are
• 5:14
  you
• 5:14
  left
• 5:14
  with
• 5:15
  for
• 5:15
  the
• 5:15
  shopping
• 5:15
  experience?
• 5:16
  And
• 5:16
  I
• 5:16
  tried
• 5:17
  to
• 5:17
  even
• 5:17
  go
• 5:17
  to
• 5:18
  like,
• 5:18
  to
• 5:19
  the,
• 5:19
  yes,
• 5:19
  maybe
• 5:20
  they
• 5:20
  could
• 5:20
  just
• 5:20
  build
• 5:21
  store
• 5:21
  fulfillment
• 5:22
  centers
• 5:22
  or
• 5:22
  something
• 5:22
  in
• 5:23
  these
• 5:23
  areas
• 5:23
  to
• 5:23
  just
• 5:23
  hit
• 5:24
  on
• 5:24
  faster
• 5:24
  delivery.
• 5:25
  But,
• 5:25
  but
• 5:25
  you
• 5:25
  have
• 5:25
  Amazon
• 5:26
  coming
• 5:26
  in
• 5:26
  and
• 5:26
  doing
• 5:26
  rural
• 5:27
  delivery
• 5:27
  too
• 5:27
  and
• 5:28
  everybody
• 5:28
  knows
• 5:29
  Amazon
• 5:29
  already
• 5:30
  too.
• 5:30
  So
• 5:30
  I
• 5:30
  think,
• 5:31
  I
• 5:31
  think
• 5:31
  Target's
• 5:32
  in
• 5:32
  a,
• 5:32
  in
• 5:32
  a
• 5:32
  tough
• 5:33
  space
• 5:33
  here.
• 5:34
  And
• 5:35
  I
• 5:35
  also
• 5:35
  wonder
• 5:35
  if
• 5:35
  this
• 5:36
  isn't
• 5:36
  a
• 5:36
  bit
• 5:36
  of
• 5:36
  a
• 5:37
  PR
• 5:37
  play
• 5:37
  as
• 5:38
  well,
• 5:38
  like
• 5:38
  if
• 5:39
  they're
• 5:39
  going
• 5:39
  to
• 5:39
  these
• 5:40
  based
• 5:40
  on
• 5:40
  all
• 5:40
  of
• 5:41
  the,
• 5:41
  the
• 5:42
  footfall
• 5:42
  drop
• 5:43
  that
• 5:43
  they
• 5:43
  saw
• 5:43
  from
• 5:44
  a
• 5:44
  lot
• 5:44
  of
• 5:44
  the
• 5:45
  DEI
• 5:45
  initiatives.
• 5:46
  I
• 5:46
  also
• 5:46
  wonder
• 5:46
  if
• 5:47
  this
• 5:47
  isn't
• 5:47
  saying,
• 5:48
  okay,
• 5:48
  we're
• 5:48
  going
• 5:48
  to
• 5:48
  go
• 5:49
  and
• 5:49
  try
• 5:49
  to
• 5:49
  penetrate
• 5:50
  a
• 5:50
  new
• 5:50
  market
• 5:51
  here,
• 5:51
  but
• 5:52
  Chris,
• 5:53
  Chris
• 5:53
  Disa,
• 5:54
  you
• 5:54
  got
• 5:54
  something
• 5:54
  to
• 5:54
  throw
• 5:54
  in?
• 5:55
  I
• 5:55
  will
• 5:56
  say
• 5:57
  they're,
• 5:57
  they're
• 5:58
  adding,
• 5:59
  their
• 5:59
  desire
• 5:59
  is
• 6:00
  to
• 6:00
  add
• 6:00
  300
• 6:01
  stores,
• 6:01
  which
• 6:01
  is
• 6:02
  a
• 6:02
  15%
• 6:02
  increase.
• 6:03
  If
• 6:03
  we
• 6:03
  were
• 6:04
  talking
• 6:04
  50
• 6:04
  stores
• 6:05
  in
• 6:05
  select
• 6:05
  locations
• 6:06
  that,
• 6:07
  you
• 6:07
  know,
• 6:07
  services
• 6:08
  in
• 6:08
  need,
• 6:08
  all
• 6:09
  four,
• 6:09
  but
• 6:09
  you
• 6:10
  know,
• 6:10
  300
• 6:10
  stores
• 6:11
  is
• 6:11
  quite
• 6:11
  bullish
• 6:11
  in
• 6:11
  my
• 6:12
  opinion.
• 6:12
  Totally
• 6:13
  agree.
• 6:13
  Chris
• 6:13
  Walton,
• 6:14
  close
• 6:14
  us
• 6:14
  up.
• 6:15
  What's
• 6:15
  the,
• 6:15
  what's
• 6:15
  your
• 6:16
  thought
• 6:16
  here?
• 6:17
  Yeah,
• 6:17
  I've
• 6:17
  been
• 6:17
  on
• 6:17
  my
• 6:17
  edge
• 6:18
  of
• 6:18
  my
• 6:18
  seat
• 6:18
  waiting
• 6:18
  to
• 6:18
  chime
• 6:19
  in
• 6:19
  on
• 6:19
  this.
• 6:20
  I
• 6:20
  think
• 6:20
  I
• 6:20
  actually
• 6:20
  have,
• 6:20
  I
• 6:21
  think
• 6:21
  I
• 6:21
  actually
• 6:21
  have
• 6:21
  firsthand
• 6:22
  experience
• 6:22
  that's
• 6:23
  pretty
• 6:23
  applicable
• 6:23
  for
• 6:24
  sure
• 6:25
  to
• 6:25
  this
• 6:25
  discussion.
• 6:26
  You
• 6:26
  know,
• 6:27
  you
• 6:27
  know,
• 6:27
  I,
• 6:28
  and
• 6:28
  the
• 6:28
  reason
• 6:29
  I
• 6:29
  say
• 6:29
  this,
• 6:29
  I
• 6:29
  ran,
• 6:30
  I
• 6:30
  actually
• 6:30
  was
• 6:30
  in
• 6:31
  charge
• 6:31
  of
• 6:31
  the
• 6:31
  stores
• 6:32
  in
• 6:32
  Scotts
• 6:32
  Bluff,
• 6:33
  Nebraska
• 6:33
  and
• 6:34
  Casper,
• 6:34
  Wyoming,
• 6:35
  and
• 6:35
  they
• 6:35
  were
• 6:35
  some
• 6:35
  of
• 6:36
  the
• 6:36
  lowest
• 6:36
  volume
• 6:37
  stores
• 6:38
  at
• 6:38
  Target.
• 6:38
  And
• 6:39
  so
• 6:39
  to
• 6:39
  Chris's
• 6:39
  point,
• 6:39
  if
• 6:40
  you're
• 6:40
  going
• 6:40
  to
• 6:40
  build
• 6:40
  300
• 6:41
  of
• 6:41
  these,
• 6:41
  there
• 6:42
  just
• 6:42
  aren't
• 6:42
  that
• 6:42
  many
• 6:42
  locations
• 6:43
  that
• 6:43
  are
• 6:43
  going
• 6:43
  to
• 6:43
  pencil.
• 6:44
  And
• 6:44
  I
• 6:44
  can
• 6:44
  tell
• 6:44
  you
• 6:44
  without
• 6:45
  giving
• 6:45
  anything
• 6:45
  away,
• 6:46
  the
• 6:46
  volume
• 6:46
  of
• 6:46
  those
• 6:46
  stores
• 6:47
  is
• 6:47
  like
• 6:47
  50%
• 6:48
  of
• 6:48
  what
• 6:48
  an
• 6:48
  average
• 6:49
  target,
• 6:49
  at
• 6:49
  least
• 6:49
  50%
• 6:50
  less
• 6:50
  than
• 6:50
  what
• 6:51
  an
• 6:51
  average
• 6:51
  Target
• 6:51
  store
• 6:52
  is
• 6:52
  going
• 6:52
  to
• 6:52
  be.
• 6:53
  And,
• 6:53
  and
• 6:53
  to
• 6:53
  your
• 6:54
  point,
• 6:54
  I
• 6:54
  think
• 6:54
  everyone
• 6:55
  nailed
• 6:55
  this.
• 6:55
  Like,
• 6:56
  you
• 6:56
  know,
• 6:56
  Walmart's
• 6:57
  already
• 6:57
  there.
• 6:57
  Walmart's
• 6:58
  better
• 6:58
  than
• 6:58
  it's
• 6:59
  ever
• 6:59
  been.
• 6:59
  Amazon
• 7:00
  is
• 7:00
  going
• 7:00
  there
• 7:01
  too.
• 7:01
  And
• 7:01
  so
• 7:02
  for
• 7:02
  delivery,
• 7:02
  like
• 7:02
  if
• 7:03
  that's
• 7:03
  why
• 7:03
  you're
• 7:03
  building
• 7:03
  these,
• 7:04
  why
• 7:04
  would
• 7:04
  you
• 7:04
  build
• 7:04
  stores
• 7:05
  just
• 7:05
  for
• 7:05
  delivery
• 7:05
  hubs
• 7:06
  like
• 7:06
  that
• 7:06
  Seems
• 7:06
  like
• 7:06
  a
• 7:06
  really
• 7:07
  expensive
• 7:07
  proposition.
• 7:08
  Target
• 7:09
  Tractor
• 7:10
  Supply
• 7:10
  is
• 7:10
  also
• 7:11
  there.
• 7:11
  So
• 7:13
  how
• 7:13
  does
• 7:13
  Target
• 7:13
  win
• 7:14
  this,
• 7:15
  how
• 7:15
  does
• 7:15
  Target
• 7:15
  win
• 7:16
  this
• 7:16
  battle?
• 7:16
  You
• 7:16
  know,
• 7:17
  that
• 7:17
  will
• 7:18
  return
• 7:18
  the
• 7:18
  capital
• 7:19
  that
• 7:19
  Wall
• 7:20
  street
• 7:20
  requires,
• 7:21
  given
• 7:21
  the
• 7:21
  historical
• 7:22
  performance
• 7:22
  of
• 7:22
  Target
• 7:23
  at
• 7:23
  a
• 7:23
  time
• 7:23
  when
• 7:24
  the
• 7:24
  cost
• 7:24
  of
• 7:24
  capital
• 7:24
  is
• 7:24
  also
• 7:25
  more
• 7:25
  expensive
• 7:25
  than
• 7:25
  it
• 7:26
  has
• 7:26
  been
• 7:26
  in
• 7:26
  years
• 7:26
  past.
• 7:27
  So
• 7:28
  I
• 7:28
  absolutely
• 7:28
  don't
• 7:29
  get
• 7:29
  this.
• 7:29
  It's,
• 7:30
  it's
• 7:30
  just
• 7:30
  another
• 7:31
  sign
• 7:31
  of
• 7:31
  just
• 7:32
  how
• 7:32
  lost
• 7:33
  strategically
• 7:34
  target
• 7:35
  is
• 7:35
  right
• 7:35
  now.
• 7:35
  Which
• 7:36
  Michael
• 7:36
  said
• 7:36
  right
• 7:36
  at
• 7:37
  the
• 7:37
  outset,
• 7:37
  like
• 7:37
  this
• 7:38
  is
• 7:38
  a
• 7:38
  discussion.
• 7:39
  This
• 7:39
  is
• 7:39
  just
• 7:39
  a
• 7:39
  pivot
• 7:40
  that
• 7:41
  should
• 7:41
  never
• 7:41
  have
• 7:41
  gone
• 7:41
  past
• 7:42
  anyone.
• 7:42
  Like.
• 7:43
  And
• 7:43
  yeah,
• 7:43
  the
• 7:44
  city
• 7:44
  targets
• 7:44
  didn't
• 7:44
  work.
• 7:45
  No,
• 7:45
  no.
• 7:45
  Crap.
• 7:46
  We
• 7:46
  all
• 7:46
  knew
• 7:46
  that
• 7:46
  going
• 7:47
  into.
• 7:47
  Because
• 7:47
  you
• 7:48
  can't
• 7:48
  build
• 7:48
  enough
• 7:48
  of
• 7:48
  those
• 7:49
  at
• 7:49
  a,
• 7:49
  at
• 7:50
  a
• 7:50
  rate
• 7:50
  that's
• 7:50
  going
• 7:50
  to
• 7:50
  have
• 7:50
  meaningful
• 7:51
  comp
• 7:51
  growth
• 7:51
  either.
• 7:52
  There
• 7:52
  just
• 7:52
  aren't
• 7:52
  that
• 7:52
  many
• 7:53
  locations
• 7:53
  in
• 7:53
  the
• 7:53
  US
• 7:54
  where
• 7:54
  that's
• 7:54
  going
• 7:54
  to
• 7:55
  play
• 7:55
  out
• 7:55
  either.
• 7:55
  But
• 7:56
  they
• 7:56
  were,
• 7:56
  they
• 7:56
  were
• 7:56
  lined
• 7:57
  up
• 7:57
  on
• 7:57
  that
• 7:57
  strategy
• 7:58
  for
• 7:58
  five
• 7:58
  or
• 7:58
  six,
• 7:58
  you
• 7:59
  know,
• 7:59
  10
• 7:59
  years
• 7:59
  almost.
• 8:00
  Cornell's
• 8:00
  been
• 8:00
  there
• 8:00
  since
• 8:00
  2014.
• 8:02
  So.
• 8:02
  So
• 8:02
  when
• 8:02
  do
• 8:03
  they
• 8:03
  get
• 8:03
  some
• 8:03
  really
• 8:04
  concrete
• 8:04
  growth
• 8:04
  strategies
• 8:05
  here?
• 8:05
  And
• 8:05
  I
• 8:05
  mean
• 8:06
  I've
• 8:06
  been
• 8:06
  ran
• 8:06
  on
• 8:06
  this
• 8:06
  for
• 8:07
  the
• 8:07
  hopefully
• 8:08
  this
• 8:08
  pulpit
• 8:08
  forever.
• 8:10
  Like,
• 8:10
  come
• 8:10
  on,
• 8:11
  this
• 8:11
  is
• 8:11
  not
• 8:11
  it.
• 8:12
  Hopefully
• 8:13
  the
• 8:13
  acceleration
• 8:14
  team,
• 8:15
  that's
• 8:15
  that
• 8:15
  they
• 8:15
  talked
• 8:16
  about
• 8:16
  in
• 8:16
  the
• 8:16
  earnings
• 8:16
  call
• 8:17
  this
• 8:17
  morning.
• 8:17
  It's
• 8:17
  all
• 8:18
  down
• 8:18
  to
• 8:18
  the
• 8:18
  acceleration
• 8:19
  team,
• 8:19
  Chris.
• 8:19
  Acceleration
• 8:20
  move
• 8:21
  forward.
• 8:22
  Right.
• 8:22
  Man.
• 8:23
  I
• 8:23
  feel,
• 8:24
  and
• 8:24
  I
• 8:24
  feel,
• 8:24
  I
• 8:24
  feel
• 8:24
  vindicated
• 8:25
  by
• 8:25
  that
• 8:25
  too.
• 8:25
  And
• 8:26
  because
• 8:26
  that
• 8:26
  I've
• 8:26
  been
• 8:26
  saying
• 8:27
  that
• 8:27
  this
• 8:27
  was
• 8:27
  going
• 8:27
  to
• 8:28
  happen
• 8:28
  for
• 8:28
  a
• 8:28
  year
• 8:29
  and
• 8:29
  a
• 8:29
  half
• 8:29
  now
• 8:29
  when
• 8:29
  we
• 8:29
  had
• 8:30
  the
• 8:30
  annual
• 8:30
  Review
• 8:30
  show
• 8:31
  in
• 8:31
  2023
• 8:32
  with
• 8:32
  the
• 8:32
  a
• 8:32
  and
• 8:32
  M
• 8:32
  folks
• 8:33
  and,
• 8:33
  and
• 8:33
  it
• 8:33
  has
• 8:34
  happened.
• 8:34
  But
• 8:34
  I
• 8:34
  can
• 8:34
  tell
• 8:34
  you
• 8:34
  like,
• 8:35
  you
• 8:35
  know,
• 8:35
  before
• 8:35
  you
• 8:35
  announce
• 8:36
  this,
• 8:36
  go
• 8:36
  into
• 8:37
  the
• 8:37
  store
• 8:37
  in
• 8:37
  Scott's
• 8:38
  Bluff
• 8:38
  and
• 8:38
  see
• 8:38
  if
• 8:38
  you
• 8:39
  want
• 8:39
  to,
• 8:39
  you
• 8:39
  know,
• 8:40
  replicate
• 8:41
  that
• 8:41
  model
• 8:41
  throughout
• 8:42
  the
• 8:42
  country.
• 8:42
  Like
• 8:42
  get
• 8:43
  off,
• 8:43
  get
• 8:43
  out
• 8:44
  of
• 8:44
  the
• 8:44
  corporate
• 8:44
  boardroom
• 8:45
  and
• 8:45
  see
• 8:45
  if
• 8:45
  that's
• 8:45
  the
• 8:45
  model
• 8:46
  that
• 8:46
  you
• 8:46
  think
• 8:46
  is
• 8:46
  really
• 8:47
  going
• 8:47
  to
• 8:47
  work.
• 8:47
  I
• 8:47
  don't
• 8:48
  know.
• 8:48
  But
• 8:48
  yeah,
• 8:49
  I
• 8:49
  mean,
• 8:49
  look,
• 8:49
  retail
• 8:50
  101
• 8:51
  that
• 8:51
  is
• 8:51
  like
• 8:52
  really,
• 8:53
  really
• 8:53
  proven
• 8:54
  is
• 8:55
  that
• 8:55
  these
• 8:56
  X
• 8:57
  O
• 8:57
  market
• 8:58
  stores
• 8:58
  or
• 8:59
  smaller
• 8:59
  stores
• 9:00
  struggle.
• 9:01
  So
• 9:01
  every
• 9:02
  major
• 9:02
  retailer
• 9:03
  expands
• 9:03
  and
• 9:04
  then
• 9:04
  spends
• 9:04
  years
• 9:05
  trying
• 9:05
  to
• 9:05
  get
• 9:05
  out
• 9:05
  of
• 9:06
  the
• 9:06
  leases
• 9:06
  to
• 9:07
  shut
• 9:07
  the
• 9:07
  not
• 9:07
  profitable
• 9:08
  doors.
• 9:09
  They're
• 9:09
  now
• 9:09
  saying
• 9:09
  we
• 9:10
  want
• 9:10
  to
• 9:10
  open
• 9:10
  300
• 9:11
  of
• 9:11
  these
• 9:11
  types
• 9:11
  of
• 9:11
  stores.
• 9:12
  So
• 9:12
  number
• 9:12
  one,
• 9:13
  that's,
• 9:13
  that's
• 9:13
  doa.
• 9:14
  Number
• 9:15
  two,
• 9:15
  the
• 9:15
  other
• 9:15
  one
• 9:15
  that
• 9:16
  we
• 9:16
  didn't
• 9:16
  talk
• 9:16
  about
• 9:17
  is
• 9:17
  Dollar
• 9:18
  General.
• 9:19
  Dollar
• 9:19
  General
• 9:20
  has
• 9:20
  these
• 9:20
  markets
• 9:21
  figured
• 9:21
  out
• 9:23
  they
• 9:23
  are
• 9:23
  growing
• 9:24
  their
• 9:24
  grocery
• 9:24
  business
• 9:25
  as
• 9:25
  well.
• 9:25
  Now
• 9:25
  that's
• 9:26
  much
• 9:26
  to
• 9:26
  the
• 9:27
  not,
• 9:27
  you
• 9:28
  know,
• 9:29
  whatever.
• 9:29
  They're
• 9:29
  just
• 9:29
  growing
• 9:30
  their
• 9:30
  grocery
• 9:30
  business.
• 9:31
  So
• 9:31
  like
• 9:31
  what
• 9:32
  do
• 9:32
  these
• 9:32
  markets
• 9:32
  really
• 9:33
  need
• 9:33
  a
• 9:33
  Target
• 9:34
  for?
• 9:34
  And
• 9:35
  I,
• 9:35
  I
• 9:35
  think
• 9:35
  the
• 9:35
  last
• 9:36
  thing
• 9:36
  that
• 9:36
  Target
• 9:37
  absolutely
• 9:37
  needs
• 9:37
  to
• 9:37
  do
• 9:38
  and
• 9:38
  if
• 9:38
  we
• 9:38
  were
• 9:38
  working
• 9:39
  with
• 9:39
  them
• 9:39
  or
• 9:40
  if
• 9:40
  I
• 9:40
  was
• 9:40
  the
• 9:40
  CEO,
• 9:41
  I
• 9:41
  would
• 9:41
  say
• 9:42
  let's
• 9:42
  focus
• 9:43
  on
• 9:43
  ourselves.
• 9:44
  Let's
• 9:44
  stop
• 9:45
  like
• 9:45
  these
• 9:45
  bright,
• 9:45
  shiny
• 9:46
  object
• 9:47
  things.
• 9:47
  What
• 9:48
  do
• 9:48
  we
• 9:48
  need
• 9:48
  to
• 9:48
  do
• 9:49
  to
• 9:49
  be
• 9:49
  the
• 9:49
  best
• 9:49
  that
• 9:50
  we
• 9:50
  can
• 9:50
  be
• 9:50
  in
• 9:50
  our
• 9:51
  own
• 9:51
  four
• 9:51
  walls
• 9:51
  with
• 9:52
  what
• 9:52
  we
• 9:52
  have
• 9:52
  today
• 9:53
  and
• 9:53
  what
• 9:53
  we
• 9:53
  can
• 9:54
  control?
• 9:54
  And
• 9:55
  because
• 9:55
  it
• 9:55
  doesn't
• 9:55
  feel
• 9:55
  like
• 9:56
  they're
• 9:56
  doing
• 9:56
  that,
• 9:57
  and
• 9:57
  I
• 9:57
  think
• 9:57
  that's
• 9:58
  a
• 9:58
  huge
• 9:58
  miss
• 9:58
  on
• 9:59
  their
• 9:59
  part.
• 10:00
  Oh,
• 10:00
  you
• 10:01
  guys.
• 10:01
  You
• 10:01
  would
• 10:01
  get
• 10:01
  my
• 10:02
  vote.
• 10:02
  Michael.
• 10:02
  Yes.
• 10:03
  Honestly,
• 10:03
  you
• 10:03
  can't
• 10:03
  do.
• 10:04
  No,
• 10:04
  I
• 10:04
  don't
• 10:04
  think
• 10:04
  anyone
• 10:05
  could
• 10:05
  do
• 10:05
  a
• 10:05
  worse
• 10:05
  job,
• 10:06
  quite
• 10:06
  honestly,
• 10:06
  but
• 10:06
  you
• 10:06
  would
• 10:07
  get
• 10:07
  my
• 10:07
  vote.