Target Growth Focuses On Small Formats, Customization Concepts

In 2015, Target Corp. plans to open 15 stores across three distinct store formats, it announced. The retailer will launch eight TargetExpress locations, one CityTarget and six general merchandise stores.

Target’s strategic store growth strategy focuses on reaching consumers in urban centers with new formats like TargetExpress and CityTarget, while also offering new experiences, merchandising layouts and innovations in its general merchandise stores, the company added.

After having introduced the format to San Francisco, San Diego and St. Paul, MN, Target will debut two TargetExpress stores in 2015, one in the Washington, D.C. metropolitan area and one in Chicago, the company stated.

TargetExpress is a quick-trip shopping concept that the retailer continues to amend as it looks to establish the best small-store shopping experience in various community circumstances, Target stated. The newest and smallest of its formats at about 20,000 square feet, Target characterized the express format as still distinctly Target despite the limited scale. The retailer asserted that, by varying express format sizes and locations, it can create a unique localized store experience and curated merchandise assortment for each community. Target will continue to test express stores to learn more about operating small-format locations and to further enhance and customize the guest experience. Target currently operates one TargetExpress location in Minneapolis, which it opened in July 2014 and already adjusted it based on guest feedback and operational insights. Beyond 2015, Target is exploring a number of opportunities to bring TargetExpress to more major markets across the country, including the Philadelphia area, Los Angeles, and the San Francisco Bay area.

In 2015, Target will open its first East Coast CityTarget store in Boston near Fenway Park, a move it will follow by a debut in Brooklyn, NY during 2016 as part of the City Point development. CityTarget debuted in 2012 as the latest urban-oriented format operated by the company, which has experimented with similar store concepts in Brooklyn and its sister New York City borough, Queens, among other locations. CityTarget offers an edited assortment of the retailer’s best-selling merchandise for urban dwellers in stores that range in size from 80,000 to 160,000 square feet. Target currently operates eight CityTarget stores, including three in Los Angeles, two in San Francisco, one in Seattle, one in Portland, OR, and one in Chicago.

In the meantime, Target continues to innovate with its general merchandise stores, it noted. So, a Fort Worth, TX, store will feature the retailer’s home product assortment in a lifestyle setting to give shoppers pause and allow them to imagine how products might look in their own homes. A new Oahu-Kailua, HI store will offer merchandise from about 30 local vendors to provide relevant merchandise.

“Our store growth looks different today than it did five years ago, driven by guests’ expectations for ease and personalization in their shopping experience. Smaller formats like TargetExpress and CityTarget offer customized assortments and services to meet the needs of guests who are increasingly moving into urban centers. In our general merchandise stores, we’re embracing a test and learn philosophy, innovating with layouts and experiences, and bringing digital and bricks and mortar together like never before,” stated Tina Tyler, evp and chief stores officer, Target.