The trend of megastores going small is picking up steam. Walmart is actively looking at urban markets for growth, Home Depot developed its "lite" urban store in the 1990s, and now Target is getting into the game with plans to open a small store in Seattle 2012.
That is if 103,000 sq. ft. is considered small.
Compared to a typical Target store that runs between 125,000 and 180,000 square feet, it's smaller, but hardly tiny as some would have us believe. Walmart stores can be as big as 200,000 sq. ft., and its newest initiative to open 15,000-square=foot, convenience-store-like shops seems like a much more difficult feat.
Big box stores like Target and Walmart are aggressively looking to enter new markets, which they need to do to grow. Space is harder to come by than in the suburbs or rural communities where both chains began, so becoming more flexible is an imperative. The Seattle store will be three stories. Target already operates several two story units in cities like Chicago, Los Angeles and New York, and Target executives told analysts there are plans for 10 of these scaled-down stores in the next several years.
Target to open small stores