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.”
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…
