Big or Small Format? Target and CVS Make Their Choices
Target hopes to hit the bull’s-eye with a bigger footprint and large-format locations. It is shooting for a 15% increase in number of stores by adding more than 300 over the next 10 years. The big-box, discount retailer also plans to remodel most of its nearly 2,000 existing locations.
This year alone, the retailer eyes 20 new stores, mostly large-format locations. The average large-format Target measures 150,000 square feet. “Physical stores offer the space and flexibility to incorporate the best of Target’s shopping experience while powering more efficient fulfillment operations and fueling digital growth as part of the company's stores-as-hubs model,” the retailer said on its website.
The new and remodeled stores fit into Target’s strategy of boosting sales by more than $15 billion by 2030. In its 2024 fiscal year, which ended Feb. 1, Target reported net sales of $30.9 billion, down 3.1% from the previous year. “Our strategy is all about creating today’s Tarzhay, offering everyday discovery and delight for millions of families and ensuring Target is a consumer favorite for years to come,” said CEO Brian Cornell.
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Meanwhile, as the drugstore sector struggles, CVS is gearing up to open a dozen stores with full-service pharmacies but slimmed-down retail offerings, The Wall Street Journal reported. In other words, no greeting cards, groceries or nail polish. An average mini-store will measure less than 5,000 square feet. That’s less than half the size of a typical CVS store, WSJ reported. These stores are set to debut over the next year in communities throughout the country. CVS also is closing 270 traditional locations this year.
FROM THE C+CT ARCHIVE: Stores Are Getting Smaller
Dick’s Is Bulking Up Its House of Sport and Field House Concepts
Dick’s Sporting Goods president and CEO Lauren Hobart believes the “one-two punch” of its experiential House of Sport and Field House concepts represents the future of the sporting goods and apparel retailer. In 2025, it plans to open 16 House of Sport locations, which would bring the brand’s number to 35, Hobart said on Tuesday during a fourth-quarter earnings call. Dick’s 2024 fiscal year ended Feb. 1. The retailer also expects to start construction on 20 House of Sport locations slated to open in 2026.
Dick’s envisions 75 to 100 House of Sport locations across the country by the end of 2027. “In addition to driving strong athlete excitement, House of Sport is drawing unprecedented landlord interest, which gives us the opportunity to join some of the best retail centers,” Hobart said.
FROM THE C+CT ARCHIVE: Dick’s Will Focus on Its Experiential House of Sport Concept — and Backfilling Mall Anchors
Dick’s expansion plan for the Field House concept is less aggressive. After debuting 15 Field House locations in 2024 for a total of 26 at year’s end, Dick’s expects to add 18 in 2025. CFO Navdeep Gupta said about 70% of the retailer’s 2025 openings will be relocations or conversions of existing stores into “these innovative new formats.”
Simon Adds TSA PreCheck Enrollment at 4 Properties
Simon has added an amenity that one typically finds at airports. The REIT teamed up with Clear to establish TSA PreCheck sign-up and renewal locations at four marketplaces: Sawgrass Mills in Sunrise, Florida; The Florida Mall in Orlando; The Galleria in Houston; and Lenox Square in Atlanta. “We love to enhance the shopper experience with new amenities across our portfolio of retail centers, and bringing TSA PreCheck enrollment, particularly to these tourist destinations, is a perfect fit,” said executive vice president of Simon Media & Experiences Chip Harding.
Those enrolled in PreCheck don’t need to take off their shoes, belts or light jackets or remove laptops and certain liquids from their carry-ons at the U.S. Transportation Security Administration’s airport checkpoints. Clear provides PreCheck enrollment and renewal services at 56 U.S. airports. Certain Staples office supply stores also offer these services.
Hudson’s Bay Co. Looks at Strategic Alternatives After Bankruptcy Filing
Photo credit: Erman Gunes - stock.adobe.com
Canadian department store chain Hudson’s Bay Co. is exploring strategic alternatives, which could include the sale of the company, after filing on March 7 for Canada’s version of bankruptcy protection. Hudson’s Bay, founded in 1670, has lined up debtor-in-possession financing of 16 million Canadian dollars and is seeking more financing as it restructures. Hudson’s Bay cited pressures like trade tensions with the U.S., post-pandemic shifts in shopping behavior and economic headwinds. Hudson’s Bay operates 80 stores in Canada under its own brand, along with three Saks Fifth Avenue and 13 Saks Off 5th stores in Canada under a licensing deal. Hudson’s Bay said all the stores remain open.
Hudson’s Bay previously owned Saks Fifth Avenue. Saks merged with Neiman Marcus after Hudson’s Bay bought the latter in a 2024 deal valued at $2.7 billion. In conjunction with that transaction, Hudson’s Bay became a standalone business.
Former JCPenney Executive and ICSC Trustee Michael Lowenkron Has Died
Former JCPenney vice president of retail and former ICSC trustee Michael Lowenkron died on March 6. He was 81. During his 35-year tenure at JCPenney, he spearheaded the 1992 relocation of the department store chain’s headquarters from New York City to the Dallas area. Aside from serving as an ICSC trustee, Lowenkron had been a board member of the Urban Land Institute and a founding member of the graduate real estate program at the University of Pennsylvania’s Wharton School.
By John Egan
Contributor, Commerce + Communities Today