Target’s test of extended store hours (earlier opening, later closing) seems like a no-brainer to me. As a colleague used to say, “Is the juice worth the squeeze?” The question of breakeven on more sales vs. higher costs ought to be easy for Target to quantify. Here’s a recent comment from RetailWire on the subject:
Target needs to consider where it is losing share to Walmart in competitive locations, and it also needs to consider (obviously) the cost-benefit of more sales vs. more payroll and other expenses. It’s certainly worth the test, and Target might also consider earlier openings. There has to be some business left on the table by opening at 8am instead of 7am, and missing the “morning rush” before people are stuck in their commutes to work.
It will still come down to content, however: As the article points out, Costco goes its own way when it comes to store opening hours. (And it’s famously closed on Federal holidays like Memorial and Labor Days.) None of this seems to affect Costco’s continuing ability to gain share.