retail news in context, analysis with attitude

Inc. has a story about how Target says that its almost 100 small stores around the country, which are roughly one-third the size of its traditional units, “are the company's most productive … These outposts are working so well, the company plans to open as many as 30 per year over the next few years, in contrast to only two traditional-format stores opening this year.”

The most productive of its small stores, the story says, is - not surprisingly - at Herald Square in New York City.

One of the advantages of the format, the story says, is that Target has been able to fine-tune the SKU count so they are appropriate to the location - heavy on tourist-oriented merchandise in one place, but selling items appealing to college students in another, for example.

According to the story, “Amazon has toyed with a dozen or so physical locations, and Walmart has experimented with smaller stores, but neither has worked nearly as well as Target's strategy.”
KC's View:
Target is a good example of what can happen when a CEO has a vision and is willing to bet the company on it. Of course, it helps that in this case leadership actually was right…