Target has announced that it is going to open a new location in Times Square in New York City by 2022, according to a report by CNBC.
The store will be one of Target’s “small-format” stores, which can be as small as about one-third the size of a traditional Target box store. It will be located on 42nd street between 7th and 8th avenues, and will be around 33,000 square feet.
The store will be Target’s 10th small-format shop in the Manhattan area. The smaller stores can be as small as 15,000 square feet and as large as 40,000.
Target has been ramping up its presence in New York lately, and according to CEO Brian Cornell, the strategy has been working. The retailer has locations in the Upper East, Upper West and Lower East Sides.
Cornell said the stores are double as productive as regular stores. In August, Target said it opened its 100th small-format store, after it announced a $7 billion investment initiative in 2017. The plan is to open about 30 smaller stores a year across the U.S.
Target’s expansion is notable because it comes at a time when many national retailers, including CVS, Bed Bath & Beyond and Family Dollar have been closing locations as more and more people shop online. Many traditional retailers are struggling with the transition or haven’t invested enough in their eCommerce offerings to offset the loss.
Target, however, has been performing above analysts’ expectations. Target has done a few things to help with this. It cuts prices by filling orders from stock rooms, which include the back of smaller stores. It also gives people the option to buy online and then pick up in store, which greatly reduces shipping costs.
“Target’s efforts are helping it compete with the likes of Walmart in terms of prices, the department stores in terms of merchandising, and Amazon in terms of delivery,” said Joseph Feldman, analyst at Telsey Advisory Group.
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