Coronavirus Economic Impact: Target Scales Back Forecast, Expansion Plans Amid Global Pandemic

Retail giant Target Corp. (TGT) has scaled back its vision for the immediate future of the company amid the coronavirus pandemic. CEO Brian Cornell announced Wednesday that the big-box retail chain would be halting plans to remodel many locations and temporarily refocus its business towards providing essential products.

“None of us know how long this virus is going to last,” Cornell said in a CNBC interview. “We don’t know when Americans are going to go back to work. Obviously, it’s great to wake up this morning and see that the stimulus package has been approved, but we don’t know all the details. So it’s been really hard for us to say how long will this go on.”

Target has pulled its financial forecasts for the first quarter of 2020 and the rest of the year. The company also paused plans to open a number of new locations and introduce curbside pickup options for certain types of groceries.

Remodeling jobs and new store locations that were currently underway before this decision will still be completed in order to prevent disruption. Roughly 130 remodels and 15-20 smaller stores in large population areas will be completed, down from the planned 300 and 36, respectively.

“It’s safe to say that sitting here today, America is largely out of business, as many industries have idled capacity, as consumers are staying at home, working from home,” Cornell said. “Schools are closed. It’s a very unique environment that none of us have seen before, and there is no playbook for how to react in this environment. We’re writing the script each and every day.”

Target is among the many companies taking significant action to institute social distancing in its stores. Cornell told the press that employees will be in place to make sure customers stay six-feet apart at checkout aisles, which will be cleaned after every transaction. Returns and exchanges have also been halted.