In the opinion of Target (TGT) - Get Report CEO Brian Cornell, some of the company's stores are ready for an upgrade.

"Some buildings just don't reflect the brand: we have some old, tired stores that haven't been updated in years," Cornell told investors at a meeting on Tuesday in New York. Target said it will remodel 100 stores in 2017 and 250 next year. By 2019, Target expects that it will have completed 600 store refreshes.

"We can't ask people to shop the way their parents did," Cornell said.

Just don't count on Target becoming a Walmart (WMT) - Get Report or Kroger (KR) - Get Report . Cornell said Target will embrace a convenience model (think more readymade sandwiches), instead of adding things like full-service delis and bakeries.

"Grocery will likely to continue to be an overall drag on both Target's profits and store traffic," says Matt Sargent, SVP Retail for Frank N. Magid Associates. "An aggressive store remodeling effort has the potential to bring grocery back to the forefront for Target, but will not likely be realized until later in 2017."

The more aggressive remodeling plan campaign follows a somewhat shocking 2016 report card from Target on Tuesday.

The discount retailer reported fourth-quarter adjusted earnings of $1.45 a share, badly missing Wall Street estimates of $1.51. Same-store sales declined 1.5%, also missing estimates for a 1.3% decline. For comparison, Walmart U.S. delivered a same-store sales gain of 1.8% during the fourth quarter, propelled by lower prices in food.

Target said it sees full-year earnings of $3.80 to $4.20 a share, markedly below analysts' forecasts of $5.34.

"Efforts have not been enough to win in this challenging marketplace," Cornell said at the meeting. He added the marketplace is placing "stress" on Target's financial model. Target said it will invest $1 billion this year in operating margins.

"I am surprised like everyone else," Deutsche Bank analyst Paul Trussell told TheStreet by email.

Target shares finished the session sharply lower by 12% to $58.77.