Dive Brief:
- Target has announced the locations of two of three new TargetExpress stores it will open in the Bay Area of California. A store will open in San Francisco's financial district and another in downtown Berkeley.
- The TargetExpress shops have much smaller footprints than the company's traditional stores and are designed to serve urban neighborhoods. Target has said that each TargetExpress will offer a different variety of goods based on the needs of the community it serves.
- The Berkeley store is said to be comparable to a traditional grocery store, with a heavy emphasis on produce, dairy, frozen foods and beverages. The San Francisco store will be more like a convenience store and emphasize food-to-go to serve commuters.
Dive Insight:
Walmart is testing small-format stores. Target is testing small-format stores. Kroger is looking at small-format stores. It seems the entire retail world has turned its attention to the urban landscape and the millennials who are flocking back to city living.
What's unclear is how Gen Y—notable for its aversion to all things suburban, particularly superstores—will respond to the rise of what we have dubbed the "corporate bodega."