Target Corp.’s latest new store strategy involves a bigger footprint, with more space for fulfillment of online orders.
At 150,000 sq. ft., the discounter's new large-format store is more than 20,000 sq. ft. larger than a typical Target. The company said the new concept, which it unveiled in a new location in Katy, Texas, would be its primary focus in the coming years even as it continues to open stores of all sizes.
In addition to the larger format, Target has reimagined its store design, with a more open layout and new elements to better serve customers and employees, and advance the chain’s sustainability goals. The larger stores also support the retailer's same-day fulfillment services stores-as-hubs strategy for digital fulfillment.
Starting in 2023, more than half of Target's approximately 200 full store remodels and almost all of its approximately 30 new stores will include elements of the new design. Beginning in 2024, all of Target's remodels and new stores will feature the majority of the reimagined store design elements.
Target said it leveraged years of research and learnings to create the updated store design and evolve its store strategy to debut the expanded footprint. It comes after the chain has been expanding its small-format store concept as it looks to reach even more shoppers in urban neighborhoods and on college campuses.
The chain’s larger footprint stores will feature:
- More fulfillment space: The new layout has a backroom fulfillment space that is five times larger than previous stores of similar size. This additional space will help support the ongoing growth Target has experienced, with its stores fulfilling more than 95% of the retailer's digital orders and same-day services accounting for more than 10% of its overall sales.
- Full range of merchandise: The larger stores will offer Target’s full assortment of merchandise, including expanded food and beverage, exclusive brand partnerships and a curated mix of owned brands and national brands.
Target's updated store design includes:
- Increased light and natural elements: Larger windows and a more open layout will bring in more natural light. The design infuses elements such as plants and regionally sourced reclaimed wood to create a welcoming space.
- Localized design features: Target will pull in community-focused elements to each store's design, from native landscaping on the exterior to localized product offerings.
- Built-in sustainability: The retailer's stores and operations play a pivotal role its goal to achieve net zero emissions by 2040. Future new stores and remodels will include updates such as natural (CO2) refrigerants to help lower the retailer's emissions and EV charging ports for its guests. Many locations will include rooftop solar.
- Enhanced team spaces: To serve its employees when they are off the sales floor, the new design has flexible rooms that can be rearranged to serve the team's varying needs, offer comfortable furniture options such as booth seating and more.
"Guests and team members tell us they come to Target because they feel inspired, connected and welcomed, " said John Mulligan, executive VP and COO, Target. “With our reimagined store design and larger store footprint that better supports our same-day services, we can give guests more of what they love while incorporating features that build on our commitment to sustainability, community and helping all families discover the joy of everyday life."