What: Target opened a 30,000 square-foot store in New York City's Time Square to continue its efforts to experiment with store sizes.

Why it is important: In March, the retailer said that it would add 30 stores to its footprint in 2022 to reach new markets and to utilize their brick-and-mortar locations that also serve as hubs for fulfillment.

In the company's latest earnings call, it was discovered that the average sales per store have risen 30% in the last two years.

Target's decision to further penetrate New York City is also a move that is different from big-box competitors. For example, the big box store Walmart currently does not have locations within Manhattan.

As of March, Target stated that it would be adding 30 additional stores to their footprint to help reach new markets such as mid-side stores in suburban areas and small-format locations in urban cores. Additionally, there is a plan to renovate 200 stores and open additional Ulta shop-in-shops, to make up part of the larger goal of investing USD 5 billion to scale their operations this year.

Target opens a new location in New York City's Time Square