At 150,000 square feet, Target’s large format store is bigger than the average Costco.
Minneapolis – While its middle-market rivals are just catching up with the small-box format Target pioneered, the retailer is making a huge U-turn.
Today, Target unveiled the next evolution of its new store strategy: a box that is than 20,000 square feet larger than the chain average. At 150,000 square feet, Target’s new concept is also slightly larger than the average Costco warehouse club, which comes in at 146,000 square feet.
5 things to know the concept and what comes next:
- The first large-format store is located outside Houston in Katy, Texas. Starting next year, more than half of Target’s approximately 200 full store remodels and almost all the retailer’s approximately 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 reimagined store design elements.
- Large-format Target stores offer a full assortment of merchandise plus expanded food and beverage, exclusive brand partnerships and a curated mix of owned brands and national brands.
- The new layout includes a backroom fulfillment space that’s five times larger than previous stores of similar size. This additional space will help support the growth Target has experienced, with its stores fulfilling more than 95% of the retailer’s digital orders and same-day services accounting for more than 10% of its overall sales.
- The store design adds community-focused elements from native landscaping outside the store to localized product offerings within the store to create “a more relevant experience” for shoppers, the company said.
- While focused on the new larger footprint in the coming years, Target will continue opening stores of all sizes, including its small-format stores.
“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,” said John Mulligan, executive vice president and chief operating officer, Target.
The format also advance’s Target’s goal to achieve net zero emissions by 2040. Its future new stores and remodels will include updates such as natural (CO2) refrigerants to help lower the emissions and EV charging ports, with many locations including rooftop solar.