Expanding footprint in New York City, Target announces intentions for a Times Square retail outlet
Target Expands Presence in Urban New York with Small-Format Stores
Target is set to deepen its roots in New York City with the opening of a new small-format store in Times Square in 2022. This will be the retailer's 10th small-format store in Manhattan, marking a strategic expansion into dense, urban markets.
The Times Square store is part of Target's priority growth market in New York City. Analysts note that the store investments announced by Target in 2017 are driving growth today. These investments, including the focus on private labels and smaller stores, are contributing to Target's growth and success.
Target's small-format stores have proven to be a winning strategy, with higher than average sales productivity and gross margin rates compared to larger format stores. These stores drive guest engagement and deliver strong financial performance for the retailer. The rapid expansion of smaller stores is bringing in new customers to Target, many of whom are likely to become new loyalty program members.
While Walmart has mainly relied on its e-commerce site Jet to reach urbanites in New York, Walmart's focus on its flagship website and stores may leave an opportunity for Target to gain market share in these areas. Meanwhile, Jet is receiving fewer resources from its parent Walmart as the company refocuses on its core businesses.
Target has been posting banner performances with each quarter this year, expanding sales and stealing market share. The expansion of the small-format concept has been extended to markets near college campuses, further broadening Target's customer base.
The store, located on 42nd Street between Seventh and Eighth Avenues, will join Target's growing network of small-format stores. These stores are playing a significant role in driving traffic increases and sales gains for the retailer. Target plans to open 30 small-format stores per year, making urban expansion a key part of its growth strategy.
The Times Square store represents a significant milestone for Target, marking its inroad into markets that remain a frontier for Walmart. The store is expected to deliver strong financial performance and further solidify Target's position in the competitive New York market.
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