Target to Shutter 4 Small Format Stores

But management says small outlets are still on the drawing board.

April 05, 2023

Target has confirmed plans to close four small-format outlets in mid-May. The stores include one in Philadelphia, one in Minneapolis and two in the Washington, D.C., metro area, according to Business Insider.

The decision to close these outlets was related to their individual locations, performance and foot traffic, not their size, the company said. Overall, about 150 of the company’s nearly 2,000 stores are small format. Target management said small-format stores remain important to the company’s growth. In fact, half of the approximately 20 new stores set to open this year will be smaller locations of about 50,000 square feet or less.

Nearly 50 Target stores are included on the chain’s “upcoming store openings” webpage. They range from a 19,000-square-foot location in Alabama to stores with almost 150,000 square feet in the Southeast, Midwest and Delaware.

“The decision to close any of our stores isn’t something we take lightly. It’s an action we take only after multiple years of working to improve performance,” said Kayla Castañeda, Target spokesperson, adding that the chain remains committed to the areas where stores are closing.

“All good retailers review their store portfolio, often resulting in adjustments to stores, remodels, relocations and sometimes closures. We don’t view Target closing a few stores as cause for concern,” said Joe Feldman, an analyst with Telsey Advisory Group. “Target has successfully opened smaller, neighborhood-oriented stores in smaller markets and near/on college campuses. Smaller stores are not the key driver of Target’s future store strategy, but they play a role in it.”