Big Box Retailers Going Urban, Changing Formats

Posted on May 4, 2012 ยท Posted in Developers

Target recently announced plans for four “CityTarget” locations in California including three in Los Angeles. The new stores will feature everything offered in suburban locations with additional product offerings targeted towards city dwellers.

The stores are part of an urban expansion plan to reach residents who live in metro areas that don’t feature the traditional retail space needed for big box locations. The typical Target floor-plan ranges from 120,000 to 180,000 square feet compared to CityTarget locations which will be under 100,000 square feet.

The first store is set to open in July in Westwood near UCLA and the second location will open in Downtown Los Angeles. A third store in the Beverly Center shopping center will open in March. Los Angeles and San Francisco will be the first markets with additional stores planned for Chicago, Portland and Seattle.

Target and other “big box” retailers are creating new expansions that aim to serve customers in urban spaces as opposed to suburbs which dominated expansion plans during the housing boom. Best Buy whose large footprint has become a burden with disappearing CD and DVD sales is opening small outlets and believe it or not Home Depot has two stores in Manhattan. Wal-Mart is also experimenting with the concept and is set to open a smaller store in Chinatown.

As housing shifts from building out to building up, it’s becoming clear that big box retailers will have to be ready to meet the needs of growing urban populations.

Source: Los Angeles Times
Image credit: Brigham Yen