CHICAGO — Target Corp. told shareholders Wednesday it plans to open its first urban format — City Target — in three cities next month: Los Angeles, Seattle and here.
The annual meeting was held inside the Chicago location. The stores will run between 85,000 square feet and 100,000 square feet and will feature groceries and an assortment of household products geared for city residents and commuters.
Gregg Steinhafel, chairman, president and chief executive officer of the Minneapolis-based company, said Target will open a second City Target in Los Angeles and a store in San Francisco in October; and a third L.A. location and one in Portland, Ore., next year.
During the question-and-answer portion of the meeting, a shareholder from California asked why a private-label can of peaches from Target was a product of China and was priced at $1.34, while a can from "our friends in Bentonville" contained peaches from the U.S. and cost only 98 cents.
Kathryn A. Tesjia, executive vice president, merchandising, fielded the question, saying, "We are relatively new to the food business, but we're adding team members to our staff for food sourcing to buy more product locally, and I will look into it when I get back to Minneapolis."
Steinhafel added, "Therey's no excuse for us to ever be higher-priced on a product of similar size and quality. We have pledged to match the price leader on any item, but that's one item we missed."
