Target Corp. is building a critical mass of smaller stores in New York’s five boroughs, especially Manhattan and Brooklyn. While Walmart Inc. continues to eschew those environs, Target seems intent on saturating the market with its smaller, flexible-format stores.
The Minneapolis-based retailer on Wednesday said a 50,000-square-foot unit will open in 2020 in Central Brooklyn at the intersection of Kings Highway and Foster Avenue. It’s the 27th store Target has opened or has in the works in New York City, and the seventh unit in Brooklyn.
Target’s existing Brooklyn locations include Gateway, Atlantic Terminal, Bensonhurst and Fulton Street, and a store in Midwood bowing in 2019.
The retailer last month revealed that a 21,000-square-foot store in 2019 will open on 29th Street and Second Avenue in Manhattan’s Kips Bay neighborhood. With the Kips Bay location, Target is on its way to operating eight of the smaller stores in Manhattan, including existing locations in TriBeCa and Herald Square; stores in the East Village and Lower East Side, opening this summer, along with Hell’s Kitchen, and the Upper East Side.
Target on Wednesday also unveiled a new home brand, Made by Design, which consists of 750 simple items that can be used to elevate the decor of any room. Executive vice president and chief merchandising officer Mark Tritton called it “a commitment to the democratization of impeccable design.”
Target has prioritized small-format stores nationwide with the goal of opening 130 units in urban areas and near college campuses by the end of 2019. Target chairman and chief executive officer Brian Cornell has said that the smaller units are twice as productive as their full-size cousins.
Target’s sales in the first quarter ended May 5 rose 3.5 percent to $16.56 billion from $15.99 billion in the year-ago period, while comp sales grew 3 percent, and first-quarter traffic rose 3.7 percent, the most in 10 years.
The Kings Highway unit will sell apparel and accessories for men and women, baby and kids apparel and toys, beauty products, home decor, portable technology and accessories and food and beverages. Online orders will be available for pickup in the store. Target said more than 95 percent of orders are ready in less than an hour at stores.
About 100 employees will be needed to staff the Brooklyn Kings Highway store. More immediately, the retailer needs to hire 85 workers for its Lower East Side store at 400 Grand Street opening Aug. 19. Starting Monday, Target will hold a job fair. Target moved to an $11 minimum hourly wage in October and plans to raise wages to $12 this year for existing workers with the goal of reaching at least $15 by the end of 2020. Target highlighted the tuition and GED reimbursement benefit that’s offered. Walmart last week said it will subsidize college tuition for associates, who will pay $1 a day.