Target and Wal-Mart Expand with Smaller, Urban Store Formats
Walmart and Target seek to bring their brands to areas within cities that the companies have traditionally not ventured. Wal-Mart’s “Neighborhood Market” and Target’s “City Target” are fractions of the sizes of stores that customers have seen in the past.
Target is testing its City Target format with seven stores ranging from 80,000 to 100,000 square feet in Los Angeles, Chicago, Seattle, and Portland.
Similarly, Bill Simon, Walmart’s president and CEO of its U.S. operations, said that the world’s largest retailer plans to have 500 of the smaller stores open within the next 18 months, up from the current 190. The Neighborhood Market stores average 38,000 square feet, greatly contrasting a traditional “Supercenter,” which usually lands closer to 182,000 square feet.
Additionally, “Walmart Express” is the company’s smallest concept and it averages around 15,000 square feet. There are currently only 19 of those locations. These smaller stores and meant to compete directly with grocery stores, discount/dollar stores, and drug stores.