Target Corp. is known for its big-box stores, but lately the company’s been thinking small.
The Minneapolis-based retailer is gearing up to open a small-format store in Lawndale, bringing its total fleet of downsized locations in Southern California to 17. The expansion reflects Target’s plan to move into dense urban areas as well as on or near college campuses — places where a traditional 130,000-square-foot store won’t fit.
The strategy speaks to the growing number of retailers that have downsized their brick-and-mortar operations in the face of Amazon’s strong online sales. Target, Walmart and other big-box retailers have also beefed up their online operations to capture more e-commerce business.
A grand opening for the 36,000-square-foot Lawndale store at 14310 Hawthorne Blvd. will be held Nov. 10 and hiring is underway to bring on 70 employees. Job seekers can apply at target.com/careers. Target also offers education benefits, including tuition and GED reimbursement.
More locations coming
Target has 100 small-format stores nationwide, including local locations in such communities as Mission Hills, Westwood, Koreatown, Burbank, La Canada Flintridge, Long Beach, Irvine, Orange and Anaheim. Two more Southland stores are set to open next year, including one at 415 La Brea Ave. in Los Angeles and another at 420 Broadway in Santa Monica.
The company opened 10 small-format stores in 2018 and plans to open about 30 more a year for the next few years. The stores average 40,000 square feet, although some range as low as 13,000 square feet.
The compact stores offer men’s and women’s apparel and accessories, home decor, groceries, health and beauty items and tech accessories — but in a downsized format.
“We tailor them to the local communities,” a company spokeswoman explained. “As an example, a new store on a college campus might have more grab-and-go snacks and easy to eat meals — and maybe more dorm-sized bed sheets, which are longer.”
The company’s first small-format location opened in 2012.
In a 2017 conference call with investors, CEO Brian Cornell said the retail chain is “elevating every aspect” of how it serves its guests. That includes revamping existing stores, introducing more small-format locations and pursuing an aggressive digital strategy.
Cornell said the downsized stores also serve as “hyper-local” distribution centers that fulfill digital orders faster.
Convenience and lower prices
Burt P. Flickinger III, managing director for the retail consulting firm Strategic Resource Group, said Target’s strategy makes sense.
“They are trying to locate their stores strategically along bus lines for commuter mass transit as well as being accessible to consumers with cars,” he said.
Flicker said the retailer has become more price competitive.
“Over the last three years, Target has lowered its prices about a dime on the dollar,” he said. At the beginning of the decade, our pricing survey showed they were about 15 cents on the dollar higher than Costco, Walmart, WinCo and Food 4 Less. But now they’re priced within a nickel of those stores.”
In-house drivers
Target’s in-house fleet of truck drivers gives the company a leg-up against Amazon, Flickinger added.
“Amazon uses third-party logistics companies and the federal government is starting to enforce a rule that allows truck drivers to drive for only 11 hours a day,” he said. “That is going to create an acute shortage of over-the-road drivers, so Amazon will be facing a massive delivery crisis. Target will be able to use its own logistics and delivery network while Amazon is out there with searchlights looking for drivers.”
Target operates a total of 1,855 stores nationwide, including its big-box locations and small-format stores.