What: Target keep exploring and investing in local small-format stores.

Why it is important: Dense urban neighbourhoods continue to perform.

Coronavirus may have driven people to move out of dense urban markets like New York, but Target still sees great opportunities across all the different trade areas. The company will continue to open small formats in many of the same areas that it’s opened them in historically, and plans to eventually open 40 new stores a year.

These small stores have been the fastest growing format of the company’s nearly 1 900 store fleet—mostly much larger stores. They have alone generated US$1 billion in sales last year and Target said it will also begin to explore sites for stores that are roughly half the size of its smallest small-format store, so that the company can reach even more consumers in urban neighbourhoods.

Target Bets On Small City Stores Despite People Fleeing To The Suburbs