Target Exercises Flexibility
Target Corp. is thinking out of the box in urban and other select areas.
The retailer’s flexible format store is designed to allow it to open in locations — ranging from downtown areas to college neighborhoods — that can’t accommodate a big-box footprint. The stores, which also serve as convenient pick-up destinations for online orders, run the gamut in size depending on their location. But most seem to average from about 20,000 to 40,000 sq. ft. The smallest, at 12,000 sq. ft., is in Berkely, Calif.
The format recently made its Manhattan debut, with a two-level outpost in bustling Tribeca, just a few blocks north of the new World Trade Center transportation and retail hub. At 45,000 sq. ft., the store is about one-third the size of a standard Target. It has a modern urban look, with exposed ceilings and a concrete floor. Carpeting calls out the apparel departments.
New fixtures and enhanced displays in select departments give the store a fresh feel.
A huge graffiti-like custom-mural, done by a local artist and inspired by life in the Big Apple, adds a jolt of energy to the lower level, home to the majority of the selling space.
Edited Mix: In line with its flexible strategy, the assortment has been carefully edited and curated to cater to the people who live and work in the area.
The Tribeca locale overflows with office workers, students (two city colleges have branches nearby) and young families. The merchandise mix plays to the audience by focusing on trend-driven apparel (as opposed to basics), baby and children’s items, beauty and pharmacy, technology, seasonal goods and tech accessories. The grocery assortment includes consumables and fresh produce, with lots of organic foods, easily prepared meals and grab-and-go items.
The home department spotlights decorative accents and tabletop items that can easily fit into a small apartment. Missing are the larger furniture items that can be found in Target’s suburban stores. The same strategy plays out in electronics, which showcases smaller TVs.
The smaller footprint translates into less space for dressing rooms. There are only two — one in the men’s clothing area and the other near women’s footwear. Each room is inside a large, corrugated metal box — painted in Target’s signature red hue.
New Features: Several new features are being tested in the Manhattan store, including an enhanced cash register queuing system that uses overhead monitors and audio to direct customers to the next available checkout.
Also new is a customization counter on the main floor with several touchscreens that allow shoppers to personalize T-shirts and sweatshirts. The shirts are printed on site, while the customer waits (or shops).
And in another first, Target teamed up with popular Greek yogurt brand Chobani to open a 1,000-sq.-ft. in-store Chobani Café. Offering a full menu of made-to-order yogurt creations, salads, sandwiches, beverages and more, the sleek-looking café has plenty of seating options, including a communal bar, counter and ottomans.
To date, Target has opened 27 flexible format stores, with four additional locations due to open by year end.
And more are in the works. The chain has so far announced 18 flexible format locations for 2017. Looking even further ahead, Target CEO Brian Cornell has said the total could eventually number in the hundreds.