By: Darrin Duber-Smith
As brick-and-mortar retailers reduce their respective footprints across the nation, it is important to remember that despite the rapid rise of e-commerce, these major retailers will always be building new stores even as they close old and under-performing locations. And after years of stores getting larger and larger, there is increasing evidence that a new "smaller is better" paradigm might be emerging.
Despite the failure of Wal-Mart's smaller-format "Neighborhood Market" model, Target is looking to add more small format stores across the United States in the coming decade. Faced with saturation in suburban and rural markets and as they busily remodel existing superstores, Target marketers have decided that growth opportunities likely exist in adding smaller stores in urban areas.
The company's CEO has said that the company is making "big commitments" to improving existing stores and is also expanding its digital capabilities (as most retailers are being forced to do). He has even boasted that the company remodels while competitors "across the street" close their doors. Indeed Target intends to remodel over 1,000 locations over the next three years, and will roll out lots more 50,000 square-foot stores, which are far smaller than the average Target 145,000 square foot locations. Surely these will be bale to fit in all kinds of handy urban locations. Target does seemed poised for a bright future as it also continues to upgrade its product mix, especially signature apparel lines. Attracting Millennials and upgrading the digital experience are two keys to success. As so many retailers struggle, it's nice to see one doing so well.
Discussion: Does Target appeal to you? Why or why not? What can the brand to to have more Millennial appeal?
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