Small-format stores: One success, one failure

Walmart recently announced that it is quickly exiting its small-format business, including all of its Walmart Express stores. Meanwhile Target continues to build out its small-format stores, especially in urban locations. Why the difference in approach? Here’s my opinion, from a recent RetailWire discussion:

The CityTarget experiment has helped Target learn how urban shoppers’ behavior is different. (Apartment living…public transportation or walking instead of cars…and so forth.) And Target’s assortments in its full-line stores are much more concise than what a typical Walmart carries; the ability to edit even further is more ingrained in the Target culture. Finally, Target continues to have a brand cachet (which Mr. Cornell is busily reinforcing) more likely to resonate with urban shoppers in the first place.


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