Target’s Innovative Larger Format Store to Drive Same-Day Fulfillment Services

In order to better serve its guests and team members and spur more growth, Target Corporation today unveiled the next phase of its new store strategy and store design. With approximately 150,000 square feet of area, Target's new larger-format stores are more than 20,000 square feet bigger than the chain average. They also make better use of greater space and new design elements. The retailer will continue to open stores of all sizes, but in the coming years, it will put more of an emphasis on creating a larger footprint. Target will also implement its reinvented store design, which has localized elements and a more open layout to serve and inspire its guests, to upcoming remodels as well as new stores throughout the chain.

"Target's stores are at the heart of how we deliver for our guests, whether they browse the aisles, shop online, or stop by for same-day services like Order Pickup and Drive Up. Guests and team members tell us they come to Target because they feel inspired, connected, and welcomed. 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 the executive vice president and chief operating officer of Target, John Mulligan. 

In order to upgrade its store design and adapt its store strategy to introduce a new, larger footprint, the retailer drew on years of research and learning. These larger locations will support Target's well-known same-day fulfillment services, provide customers with a wide range of merchandise offerings, and carry out its "stores as hubs" plan for digital fulfillment.

In a brand-new location outside of Houston, the store just launched a new store design and larger store structure. The company will continue opening stores of different sizes to serve customers in communities across the country as it has for years through its small-format store strategy, even as it focuses on the new larger footprint in the years ahead.

‍Optimized Store Size

Target's upcoming larger-footprint stores will include the following features:

• Greater space: The backroom fulfillment space provided by the new store layout is five times bigger than that of earlier stores of comparable size. Target's stores already fulfill over 95% of digital orders placed by the retailer, along with same-day services, accounting for over 10% of total sales. This additional space will aid in maintaining the company's growth.
• Full assortment of merchandise: The enhanced food and beverage selection, exclusive brand collaborations, and a carefully curated mix of owned brands and national brands will all be available to customers at these larger Target stores, further differentiating the retailer and fostering guest loyalty.

Reimagined Store Design

The improved in-store experience at Target has elements like:

• Enhanced light and natural elements: More open spaces and bigger windows will let in more natural light. Reclaimed wood from local sources and plants is incorporated into the design to create a warm and motivating environment for the team and guests.
• Localized design features: Target will include community-focused design aspects into each store's layout, such as native landscaping outside and locally sourced product offerings inside, to provide guests with a more relevant shopping experience.
• Built-in sustainability: The retailer's stores and business operations are essential to achieving its target of net zero emissions by the year 2040. Future stores and remodels will incorporate modern features like electric vehicle charging ports for guests and natural (CO2) refrigerants to reduce the retailer's emissions. Many of these locations will also include rooftop solar.
• Improved team spaces: Target has made investments to better support its team while they are not on the sales floor because the company believes that they are the foundation of its success. The modernized workplaces and team member spaces offer flexible rooms that can be reconfigured to meet the varied needs of the team, with cozy furniture alternatives like booth seating, among others.  

Beginning in 2023, the new design will be incorporated into nearly all of Target's 30 new stores and more than half of the retailer's 200 full-store remodels. Most of the aspects from the reimagined store design will be included in all Target remodels and new locations starting in 2024.