MINNEAPOLIS—Last month the Target Corp. decided to shutter more than 100 stores in Canada, its entire retail portfolio north of the border, but that move has not dampened its enthusiasm for a careful expansion in the US.
“We have determined that it is in the best interest of our business and our shareholders to exit the Canadian market and focus on driving growth and building further momentum in our US business,” said Brian Cornell, Target chairman and chief executive officer.
The company plans to open 15 stores in 2015 with three distinct store formats. Eight of the new stores will be smaller outlets called TargetExpress, another called CityTarget will offer customized services for urban consumers, and the rest will be general merchandise stores. Target officials say they will focus on reaching customers in urban centers with new formats like TargetExpress and CityTarget, while also offering new merchandising layouts and innovations in the general merchandise stores.
“Our store growth looks different today than it did five years ago, driven by guests' expectations for ease and personalization in their shopping experience,” said Tina Tyler, executive vice president and chief stores officer. “In our general merchandise stores, we're embracing a test and learn philosophy, innovating with layouts and experiences and bringing digital and bricks and mortar together.”
Target will open the TargetExpress outlets in San Francisco, San Diego, St. Paul, Chicago and two in the greater Washington, DC area. Each of these stores will have about 20,000-square-feet, Target's smallest format. Target has already opened one TargetExpress location in Minneapolis, and officials say they have made adjustments based on guest feedback. For example, the store expanded its offerings to include baking supplies, belts, sunglasses, jewelry and select apparel items.
The retailer will explore bringing TargetExpress outlets to other major markets across the country after 2015, including the greater Philadelphia area and Los Angeles.
Target will open its first East Coast CityTarget store in Boston near the Fenway Park, followed by a 2016 opening in Brooklyn's City Point development. CityTarget debuted in 2012 to bring the Target experience to urban shoppers. It offers smaller pack sizes, for example, that they can easily carry home. CityTarget stores range in size from 80,000-square-feet to 160,000-square-feet. There are currently eight CityTarget stores, including three in Los Angeles, two in San Francisco, one in Seattle, one in Portland and one in Chicago.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
