Artist rendering of CityTarget, Portland, OR

At its annual shareholder meeting held this week, Target Corp. expressed optimism that the company could reach more consumers with its approach to affordable design and its unique shopping experience. Gregg Steinhafel, the company’s chairman, noted that Target shoppers are willing to part with cash for home goods and apparel that reflect value in their price and design.

Steinhafel said the company would continue to pursue new ways to reach potential customers both strategically and literally through new market penetration.

“We’ve remained passionately committed to differentiation and affordable design,” he told participants in the annual meeting. “Since our shareholders meeting last year, Target has delivered ambitions and sought after design partnerships from Missoni and Jason Wu as well as our innovation in the leading-edge merchandise partnerships, The Shops at Target. This commitment remains critical because on the heels of the recession, guests continue to be very deliberate about discretionary purchases, but they are willing to splurge on home goods and apparel if the combination of style, quality and value is compelling as it continues to be at Target.”

Steinhafel noted that new urban prototype stores would be a critical to the company’s plans going forward because the CityTarget format “extends our brand and strategy to urban areas and guests who already have a high affinity for Target but can’t always get to out stores.”

The Target annual meeting actually was held at the State Street CityTarget developed in Chicago, one of three to open next month. Two additional CityTarget stores, located in Los Angeles and Seattle, will open at the same time. Target plans to open a second urban format store in L.A. in October as it opens its first in San Francisco. In 2013, the retailer plans to open two CityTargets, one in Portland, OR, and one in L.A. where the store will become the third of its kind.