Target’s New Larger-Format Stores Focus on Fulfillment
As the industry experiments with retail footprint sizes and rightsizing fulfillment operations, Target Corp. has unveiled big plans for its next-generation store design. At nearly 150,000 square feet, Target’s new larger-format stores will optimize additional space in an effort to support same-day fulfillment services and deliver on its stores-as-hubs strategy for digital fulfillment.
The new store format recently debuted in Katy, Texas, outside Houston, and is more than 20,000 square feet larger than the chain’s standard locations. Design elements include increased light, more natural elements, community-focused features, additional sustainability measures and more space for associates.
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“Target’s stores are at the heart of how we deliver for our guests, whether they browse the aisles, shop online or stop by for same-day services like Order Pickup and Drive Up,” said John Mulligan, EVP and COO at Target. “Guests and team members tell us they come to Target because they feel inspired, connected and welcomed.”
Continued Mulligan: “With our reimagined store design and larger store footprint that better supports our same-day services, we can give guests more of what they love while incorporating features that build on our commitment to sustainability, community and helping all families discover the joy of everyday life.”
The larger stores will offer a full range of merchandise, including an expanded food-and-beverage section, while also featuring backroom fulfillment space that is five times larger than previous spaces. According to the retailer, Target stores fulfill more than 95% of the retailer’s digital orders and same-day services account for more than 10% of its overall sales.
The retailer will continue opening stores of all sizes, but starting in the new year, more than half of Target’s approximately 200 full-store remodels and almost all of its estimated 30 new stores will include elements of the new design. Beginning in 2024, all of Target’s remodels and new stores will feature the majority of the new store design elements.
Minneapolis-based Target Corp. is No. 6 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America, with nearly 2,000 locations.
