Target Goes Urban with Smaller Format

The landmark Sullivan Center, formerly the Carson Pirie Scott building, will open a CityTarget in 2012.The landmark Sullivan Center, formerly the Carson Pirie Scott building, will open a CityTarget in 2012.

By David Gill

In yet another move intended to expand the retailer's market presence, Target has scheduled the opening of its first smaller-format store, to be called CityTarget, for 2012 in Chicago.

The store will be sited in Sullivan Center, a historic landmark that was once the Carson Pirie Scott building, at the corner of South State Street and Madison Street East. The store will include food, apartment merchandise, fashions and designer collections.

The Chicago CityTarget measures 124,000 square feet, of which 89,000 square feet is selling space. Target first revealed that it would open smaller-format stores in urban areas last September. According to Amy Reilly, spokeswoman for the retailer, these stores will range between 60,000 and 80,000 square feet, depending on the available space in these locations.

Reilly said Target has definite plans to open CityTargets in Seattle, San Francisco and Los Angeles in 2012, as well as Chicago. The company is considering other sites for possible openings next year, she added.

The CityTarget format is the retailer's latest major initiative in expanding its market base. In January, Target announced its deal with Hudson's Bay Co. to acquire 220 Zellers locations in Canada--its first move toward becoming an international retailer. This deal will put Target on track to open its first Canadian stores beginning in 2013, according to a Target statement.

Both the CityTarget format and the Canadian stores will play key roles in Target's growth plans going forward. In a conference call to retail analysts in November, Gregg Steinhafel, chairman, president and chief executive officer, said the company was "excited about the progress we've made in the development of the smaller format." Along with the Canadian stores, the company is also looking into near-term opportunities for stores in Puerto Rico, Steinhafel said.

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