Target CEO: Following millennials out of the 'burbs

Target shares have roared 14 percent higher in 2016. Jim Cramer spoke with Target Chairman and CEO Brian Cornell about what could be behind the company's success and what to expect this year.

"Not only is Target incredibly well-run, but the company reported a terrific quarter at the end of February … the stock remains darned cheap," the "Mad Money" host said.

According to Nielsen, millennials are a social generation with the majority now opting to live in mixed-use communities found in urban areas. Target recognized the migration of millennials to urban areas and has now focused on opening locations in these communities.

"We know 75 percent of millennials, if you talk to them today, they want to live in cities and around college campuses. So, we are simply just following the consumer," Cornell said.

Brian Cornell, CEO of Target.
Kate Kohlbrenner | CNBC
Brian Cornell, CEO of Target.
"They want to live in cities and around college campuses. So we are simply just following the consumer" -Brian Cornell, Chairman & CEO of Target

As a result, Target will be opening a new location in New York City's TriBeCa neighborhood. With this migration, Cornell added that each store must be tailored.

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For instance, a store in TriBeCa would be more family-oriented than a store on a college campus. Thus, they would stock baby and furniture products in TriBeCa and more technology and food products for the college campus.

Going forward, Cornell noted that he is focused on building a consistent growth company that will provide a return for shareholders.

"I think for us to unlock consistent growth, every day, we have got to get up and recognize what our consumers need, what the Target guest needs, and it really fuels our strategy," Cornell said.

Disclosure: Jim Cramer's charitable trust owned Target stock when this article was published.

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