Target's small stores getting even smaller
2020 will be the biggest year to date for Target's small-format expansion
Target's small-format stores, which contributed to more than $1 billion in total sales last year, are slated to get even smaller.
On Tuesday, the Minneapolis-based retailer revealed the newest phase in its multi-year strategic transformation, which includes exploring options for locations roughly 6,000 square feet in size -- half the size of its current small-store format.
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The big investment into its physical store presence exemplifies how Target, alongside other retailers, is trying to get customers in the door in the age of online ordering.
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"As we look to 2020, we'll continue to elevate our popular same-day services and expand our ambitious small-format and remodel programs to create an even easier and more convenient experience that inspires our millions of guests to keep shopping Target in new and different ways," said Target CEO Brian Cornell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 121.76 | -34.24 | -21.95% |
Throughout 2020, Target will explore these smaller 6,000-square-feet sites in an effort to reach more shoppers living within urban neighborhoods and on college campuses.
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"These are traditionally places where a traditional-sized Target store may not fit," the company told FOX Business in January.
The first store is expected to open in 2021, the company said.
Target is also slated to open nearly three dozen more small-format stores, marking the biggest year to date for its small-format expansion, the company said.
The retailer's current small-format stores start as small as 15,000 square feet or less, though traditionally the average small-format Target is around 40,000 square feet. This is about one-third the size of its full-size 130,000 square-foot stores.
Last year, the retailer was officially operating 100 small-format stores.