Target Pursues Inner-City Growth

Target is developing a small format to facilitate expansion into densely populated areas that don't have space for its traditional stores.Dubbed CityTarget and boasting its own logo, the small format will stock a slimmed-down assortment of merchandise including fresh food, "apartment essentials," apparel and accessories, according to a media release. It will debut in 2012, when Target plans to open pilot stores in Seattle, Los Angeles, Chicago and San Francisco.In Chicago, the mass merchant has nabbed the historic Sullivan Center on State Street for the first CityTarget site. Previously the longtime home of Carson Pirie Scott & Co.'s flagship store, the site is located in one of the city's most important retail neighborhoods. While the retailer already has stores within city limits, this will mark its first entry into Chicago's "Loop."Target plans to lease 124,000 square feet over two floors, but use only 54,000 square feet as sales space, according to the Chicago Tribune. The chain will need to adjust its standard outdoor signage to comply with restrictions that come with the building's landmark status.In recognition of the planned opening, Target donated 17,000 books and related materials to students at 31 Chicago schools. The chain tied into February's designation as "Black History Month" by providing books commemorating the contributions of influential African-Americans throughout history. Each school also received a $1,000 book grant. The donation is part of Target's ongoing commitment to education and reading. (See "Target Stays Charity-Focused" in Related Articles.)Walmart, Target's arch-rival (or "big brother," as Target chief financial officer Doug Scovanner recently called the retail giant) is also targeting urban areas for expansion. The discount merchant is even eyeing a site for its Neighborhood Market format in Chicago's West Loop, according to another Chicago Tribune report, and striving to infiltrate inner-city New York. (See "Walmart Polishes its Big Apple Image.")While Walmart frequently must contend with organized-labor groups as it moves into urban areas, the similarly non-union but much smaller Target has not faced the same opposition.

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