Target aiming for big returns from small store format
Target CEO Brian Cornell has suggested that open more of its smaller “flex-format” stores could be a major part of its drive to increase omnichannel growth. According to a report on Bloomberg, Cornell outlined the stragegy to the media on Wednesday (14 September) during the company’s fall national meeting at its Minneapolis headquarters.
The smaller stores (typically less than 50,000 square feet) can be introduced in downtown areas where a “big box store” can’t – and they can also serve as Click & Collect points.
According to Bloomberg, Target has opened 23 smaller stores in major US cities and has plans to add nine more this year, as well as at least another 16 in 2017.
Interestingly, Wal-Mart has gone the other way and is focusing more on its supercenters.