Target Plans Hundreds of Small-Format Stores

The down-sized stores are intended to lure millennials and urban dwellers.

November 17, 2016

McLEAN, Va. – USA Today reports that Target is expanding its small-store format to “hundreds” of new locations in urban areas and college towns.

Target CEO Brian Cornell said in an interview that he is "increasingly confident" the small-format stores will reshape the chain's image and real estate footprint. “We think we have the opportunity to enter many, many new neighborhoods," he said.

The big-box chain currently operates about 30 small-format locations, including a 45,000-square-foot store in Manhattan's Tribeca neighborhood, notes the news source. Overall, Target operates about 1,800 stores.

By many standards, 45,000 square feet isn’t exactly “small,” but the move to downsize does play into a retail trend of big stores going smaller, and smaller stores getting bigger. However, one large-format retailer is still trying to find success with a smaller format. Earlier this year Walmart announced that it was abandoning its Walmart Express format, which was around 15,000 square feet.

For Target, the goal with its scaled-down stores is to reach dense, urban areas and college towns. The news source writes that 14 of the 15 stores Target is opening this year are small-format locations, with recent openings in Philadelphia and Cupertino, California. The stores tailor their product mix to the local area, ranging from apparel, home goods, baby products, “convenient foods” and other essentials.

"We're still learning," Cornell told the news source. "We're very pleased with the feedback."

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