Target to test innovations at 25 Los Angeles stores

MINNEAPOLIS – Target is using 25 stores in the Los Angeles area as testing grounds for the retailer’s top 50 innovations – from electronic tags to adviser services in the baby department.

CEO Brian Cornell said the test stores will help the company determine how its new and existing stores will look in the future as Target works to improve the customers’ experience while pushing innovation.

The program is due to start later this year and comes at a time when Target faces stiff competition from the likes of e-commerce heavyweight Amazon.com.

But executives emphasized the Minneapolis-based retailer needs to fix some more down-to-earth problems, like keeping its products in stock.

Target announced the moves Wednesday at an annual event attended by 13,000 store managers and executives from around the country that serves as part pep rally, part business meeting.

The three-hour event was peppered with performances from Shakira, Luke Bryan and Imagine Dragons. The mood was a lot more upbeat than last year when the retailer was struggling with a string of sluggish sales as a move to sell basic groceries like milk during the Great Recession distilled its fashion edge.

“We’re still facing challenges, but we’re turning a corner,” Cornell told the audience, dressed in the retailer’s company-color red shirts and khaki pants. “I owe each of you an apology,” he said. “I didn’t spend enough time in retail fundamentals.”

Target is restoring its cool with spiffier merchandise and presentations that have helped perk up sales over the past year. Under Cornell, it is focusing on stylish products in fashion, home, baby, children’s and wellness items. It’s also ramping up its assortment of organic and natural products in the food aisle.