MINNEAPOLIS — Target reportedly is scaling back with a new small urban format.
Announced on Friday at Target Field in Minneapolis, the big-box retailer said it will develop stores that will be 60,000 sq. ft. to 100,000 sq. ft., compared with its typical 125,000-sq.-ft. to 180,000-sq.-ft. size.
The first smaller-scale store is slated to open in Seattle in 2012, followed by several other cities.
"While we will continue to build full size Target stores in these areas when it makes sense to do so, we also believe that there is a compelling opportunity to open stores in smaller spaces with reduced optimized assortments when larger sites simply aren't available," Target CEO Gregg Steinhafel told analysts during a conference call back in January. "To accommodate these smaller spaces, we will offer an edited assortment that focuses on the highest volume categories and items based on the unique needs of guests in urban settings. As part of this effort, we currently have plans to test a new assortment approach in three existing Target stores across the country. In this test, we'll offer an assortment with about 50% fewer SKUs than are currently available in these stores," he added.
Target recently opened an urban store in New York's East Harlem, and also has urban stores in Minneapolis and Chicago.
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