Meijer to invest $75 million remodeling 10 stores in Michigan, Ohio
Walker, Mich. — Meijer announced Monday it will invest $75 million to remodel 10 stores in Michigan and Ohio.
Eight of the stores slated for renovation are in Michigan and two are in Ohio.
“We are pleased to reinforce our commitment to these communities,” said CEO Hank Meijer. “Our customers expect high standards from us, and our investment in these stores will ensure they continue to receive our best.”
Some of the remodeling projects are launching immediately, and all are slated for completion by the end of 2011, said Meijer spokesman Frank Guglielmi. Each will take about two to three months to complete.
The stores were selected based on their age and condition. The remodeling projects update the stores inside and out with lighting, heating, refrigeration and parking lot maintenance. Most of the technology upgrades are designed to make the stores more energy efficient.
In addition to the remodelings, Meijer plans to spend $25 million to build two stores in 2011: a 192,000-sq.-ft. supercenter in Stevensville, Mich., and a third “small format” store that will go up in the Chicago suburb of Melrose Park.
Deloitte spending index rises in February
New York City — The Deloitte Consumer Spending Index, released Monday, rose in February, driven primarily by the slight improvements in real home prices and initial jobless claims, according to the company.
The Index attempts to track consumer cash flow as an indicator of future consumer spending.
“Despite the small gains in the Index, the recent sharp rise in energy prices could weaken consumer purchasing power in the months ahead,” said Carl Steidtmann, Deloitte’s chief economist and author of the monthly Index. “The stabilization in real home prices may also be temporary given the persistent strain on the housing market. On the upside, should the slow but steady improvement in employment continue, it may help offset price increases.”
The Index, which comprises four components — tax burden, initial unemployment claims, real wages, and real home prices — rose to 4.02 %, from an upwardly revised gain of 3.92% a month ago.
“Unsurprisingly, some retailers are concerned about rising costs and whether they can avoid passing them on to consumers,” said Alison Paul, vice chairman and retail sector leader, Deloitte LLP. “Retailers should consider costs across the entire supply chain, from strategic sourcing at the back end to the technologies and analysis they use for monitoring inventories and product movement at the front end.”
Target by the numbers
Target recently filed its annual report on form 10-K with the Securities and Exchange Commission. Here’s a look at some interesting facts and figures contained in the document:
Target employed 355,000 “team members,” last year, a figure that swells to 400,000 during the holidays.
The company operated 37 distribution centers, including four food distribution centers and maintains 27 international sourcing offices in 18 countries
The company’s three largest states by sales and store count are California, 248 stores, Texas, 148 stores and Florida, 125 stores. Target’s home state of Minnesota has the fifth largest number of stores with 73 units.
The average age of Target’s 11-member executive team is 49.8 years.
Same-store sales grew by 2.1% last year, after declining by 2.5% in 2009 and 2.9% in 2008.
REDcard credit or debit products were used on 5.9% of purchases at Target last year.
Target sells food in 713 of its 1,750 stores, consisting of 251 SuperTarget locations and 462 stores featuring the PFresh format.
Nearly $1.3 billion was spent on advertising last year representing 1.9% of total sales of $67.4 billion. That was an increase from the prior year when advertising expense of $1.167 billion represented nearly 1.8% of sales of $65.4 billion.