Opinion

Big Retailers Focus On Smaller Stores

Target plans to open nine smaller-format stores and six big-box stores in 2015. This is a shift in strategy since 15 of the 16 stores opened last year were large format. The only small store and the first TargetExpress small store opened is 20,000 square feet.

Walmart has followed a similar strategy opening 240 smaller format stores compared to 120 large super centres.

After initially viewing Canada as a great market for growth, Target this week begins liquidating inventory and closing its 133 stores. Target expects to lose $2 billion in less than two years with their growth mandate in Canada.

In the last fiscal year, Target closed more stores than it opened.

As more and more large retailers focus on express stores that are smaller (perhaps more cost efficient), there will undoubtedly be an impulse offer close to the cash registers that will compete with traditional cstore sales.