In a statement, a Target spokesperson said, “The decision to close a Target store is not made lightly. We typically decide to close a store after careful consideration of the long-term financial performance of a particular location. Typically, the decision to close a store is as a result of seeing several years of decreasing profitability.”
The list of stores that are closing is as follows:
- Austin North East (Austin, Tex.)
- Suncoast Pasco County (Odessa, Fla.)
- Casa Grande, Arizona
- Victorville, Calif.
- East Flint (Flint, Mich.)
- Columbus Southwest (Columbus, Ohio)
- Northridge (Milwaukee, Wisc.)
- Superior, Wisc.
- Springfield, Ohio
- New Ulm, Minn.
- Ottumwa, Iowa
- Anderson, Ind.
- Dixie Highway (Louisville, Ken.)
Target had plans to open 15 stores, with half of those stores using the new format called TargetExpress and the other half using the new CityTarget format.
At the recent WWD CEO Summit, chief executive officer Brian Cornell said, “I am watching consumers move back to city centers. We have to be there as they move back to these new neighborhoods, so we are building new flexible formats. We have a very aggressive plan to enter these urban markets. We want to make sure we get the right assortments, the right locations, but we have seen some terrific responses as we opened up some stores in Boston next to Fenway Park, in the South Bay area, in San Francisco or just last week in Chicago.” Originally, smaller formats were called CityTarget and Target Express, then in April, they were rebranded simply as Target.
Target isn’t the only big retailer to begin closing stores and scaling back. J.C. Penney Co. Inc. said it would close 40 stores this year and Macy’s Inc. said it was also shutting down 14 stores in 2015. Sears Holdings has closed 235 stores this year.
As more shopping migrates to online, there is less desire to keep unprofitable brick-and-mortar stores open. Target’s digital sales grew 30 percent in the second quarter.