Target (NYSE:TGT) is selling its Target Commercial Interiors subsidiary as the company continues to focus on the core business and initiatives. New programs, such as a lower free shipping threshold, are making it easier for consumers to shop Target regardless of channel.
Target Commercial Interiors (TCI) is a subsidiary that provides office furnishings and related services for business and commercial clients. TCI is slated to be acquired by Minneapolis-based Omni Workspace, more commonly known as A&M Business Interior Services. TCI will operate as a wholly-owned subsidiary and be renamed following the completion of the acquisition.
Omni Workspace will retain TCI's downtown Minneapolis headquarters as it continues to operate the six additional TCI furniture showrooms and offices in Arizona, Illinois and Wisconsin. TCI's leadership team will remain in place and its employees will become part of Omni Workspace.
"Target is continuing to drive our transformation by focusing on our core businesses and putting our guests at the center of everything we do," said Target CFO John Mulligan. "Target Commercial Interiors has a rich history and a great track record with clients, but its business model is tailored to commercial customers. The decision to exit a business is always difficult, but we are thrilled that TCI will remain in Minneapolis."
TCI began in 1953 as Dayton's Commercial Interiors and changed its name to reflect the change from Dayton's to Target Corp.
Target is shedding ancillary or underperforming operations as the company recovers from a series of incidents, including the 2013 data breach and a failed international expansion into Canada. Target closed and began selling its 133 stores in Canada earlier this year.
One of Target's more recent initiatives is already bearing fruit, according to the company. In February, Target lowered the minimum free shipping threshold to $25. Since then, nearly 5 million orders have been fulfilled that meet the lowered requirements.
-See this Target blog post
-See this Target press release
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