Target CEO Brian Cornell to Focus on Small Format Stores
MINNEAPOLIS, MN – As Target looks to cement its foothold amidst an ever-growing competitive retail market, CEO Brian Cornell said that he believes the answer is in smaller forms for big expansions and future growth.
Cornell told reporters yesterday during Target’s fall national meeting that he believes Target’s explosive growth in the future will come from further investments into the small “flex-format” stores, according to Bloomberg. Target has opened 23 of these stores so far, specifically located in major cities.
The 50,000-square-feet or less stores have enabled Target to establish locations where securing larger retail space in urban areas is more difficult. Cornell also emphasized that the small store format are also able to more easily shift focus for the particular demographics surrounding each store’s location; an option bigger box and super stores do not have.
Bloomberg reported that Cornell stated that hundreds of these smaller format Target stores could be in the buy-side segment’s midst soon. These specific formats, in addition to opening up further city-focused possibilities, could also work as potential pick up points for the company’s e-commerce business furthering its presence in that growing sector as well.
Target plans to add nine more “flex-format” stores by this year’s end, with 16 already planned for 2017.
Could this small store format be the strategy to secure Target’s national splash for retail success? As Bloomberg stated Target’s rivals have abandoned their similar small store strategies, AndNowUKnow will continue to report on Target’s innovative strategies and their respective results.