Target attracts new customers by downsizing

Annie Baxter Jul 23, 2014
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Target attracts new customers by downsizing

Annie Baxter Jul 23, 2014
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Target, the big box retailing giant, keeps trying to wedge its offerings into smaller and smaller stores.  The company has already made a play for urban customers with its scaled down CityTarget stores. But even those will be five times as big as the new TargetExpress store that opened on Wednesday, in a Minneapolis neighborhood called Dinkytown.

TargetExpress offers some of the same items like electronics, baby bibs and groceries that are for sale in the larger Target stores. But there’s just a lot less of them—about 1/5 as many items.

The clothing options include basics like socks and underwear.

“You have no quarters for laundry, here you go,” says Target spokeswoman Erika Winkels.

The TargetExpress in Dinkytown will cater to college students from the nearby University of Minnesota and other urbanites who need to do convenience shopping.

“It’s these fill-in trips, trips in between the big stock-up trips; that is the biggest opportunity in retail right now,” says Carol Spieckerman, president and CEO of newmarketbuilders, a retail strategy firm.

Graphic by Gina Martinez & Shea Huffman/Marketplace

Spieckerman says Target and Wal-Mart, which are both trying out small formats, can use the mini stores to connect shoppers to inventory not available in-store. A tablet in the TargetExpress lets shoppers search for products and buy them online.

But for customer Josh Egge, the TargetExpress’s value is its location. He manages a rental property near the new store and wants to tell potential tenants there are grocery options nearby.

“In the past, I’ve had to tell them walk five blocks and take a bus an extra two miles. So this will be really nice,” he says.

Target says it plans to open four more TargetExpress stores next year.

 


CORRECTION: An earlier version of the table included listed the incorrect number of Super Targets. The graphic has been corrected.

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