Target thinking small is best for store expansion
- Author: Joanne Flowers Sep 16, 2016,
Sep 16, 2016, 4:31
As Target looks to cement its foothold amidst an ever-growing competitive retail market, CEO Brian Cornell said that he believes the answer is in smaller forms for big expansions and future growth.
Cornell envisions eventually opening hundreds of smaller "flex-format" stores that could be a major part of Target's future growth, he told reporters Wednesday during the company's fall national meeting at its Minneapolis headquarters. Target has opened 23 of these stores so far, specifically located in major cities.
Each store has a product mix catered to the local demographic.
U.S. department store retailer Target Corp could be preparing to open hundreds of smaller "flex-format" stores which would be a major part of the company's future growth.
These specific stores are 50,000-square-feet or less, which Target strategically places in urban areas where establishing larger locations is more hard.
In addition to providing city-focused possibilities for the chain, the smaller stores could also work as potential pick-up points for Target's e-commerce business; which will further the company's presence in that growing segment as well.
According to an article published by Bloomberg, the retailer is making plans to open nine smaller stores, such as those in Chicago and Philadephia, this year and a further 16 in 2017.
Target is planning on opening hundreds of mini stores - a strategy that hasn't been successful for the retailer's rival.