Target Has a New Plan and It’s All About Convenience
Convenience is king in the retail industry. Consumers want what they want and command retailers adhere to the way they want to get it.
Because of the consumer need to have it “now,” convenience retailers “overwhelmingly say their sales increased in 2019,” according to a survey conducted by the National Association of Convenience Stores. The association also said sales at c-stores grew for the 17th consecutive year in 2019. As a result, we’re seeing more retailers like Target adopting c-store models to better serve its customers.
Target’s 100 small format stores, which are about 30,000 square feet — a fraction of Target’s typical 135,000-square-foot stores — collectively contributed more than $1 billion in total sales last year, according to reports. The success is prompting the Minneapolis-based mass retailer to add nearly three dozen small-format stores throughout 2020 and test out an even smaller 6,000-square-foot model, which should open in 2021.
At about half the size of its smallest small-format store, Target’s 6,000-square-foot store will be the size of a convenience store, allowing it to reach even more consumers in urban neighborhoods and on college campuses. Target is taking its time refining the concept, according to Fortune, which reported the company said it sees potential for a large fleet of the convenience store-sized locations.