Target confirms flex-format stores a key to growth
Target CEO, Brian Cornell says that over the long-term, he projects many more flexible-format locations
US department store retailer Target Corp has confirmed to just-style that it sees smaller "flex-format" stores in its future, offering apparel products selected for local markets.
Last week an article published by Bloomberg suggested the retailer is making plans to open nine smaller stores, such as those in Chicago and Philadelphia, this year and a further 16 in 2017.
Now Target has confirmed the company's CEO, Brian Cornell, expects many more flexible-format locations over the long-term, with urban growth a priority for the company.
The retailer began to expand into more densely populated city centres in 2012, where it has been able to leverage its strength in flexible store design to fit its stores into a less traditional, smaller space.
The company told just-style that it offers locally-relevant, catered assortments to meet the needs of urban customers and will adjust stores accordingly in the flexible format environment, such as adding more of the categories like apparel and home.
In terms of site selection, Target develops stores "that complement and support a community's needs," adds the company. "We identify potential new store opportunities in trade areas that are under-served or have the potential for new population growth."
Target analyses data on existing store performance, demographics, competition and market potential to identify trade areas that would be well-served by additional store locations. "The type of store we build is determined by factors such as anticipated sales volume, site constraints and the specific needs of a community," the company told just-style.
Over the remainder of the year Target says it will open four stores in New York, two in Pennsylvania and one each in Chicago, California and New Jersey. On the agenda for 2017 are a further 19 new stores with another two scheduled so far to open in 2018.
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