Target opened two “small format” stores in my neighborhood over the last few weeks. They got into a whole heap of trouble for the one in the East Village because of their silly appropriation of CBGB’s signage (pic above upper left). Of course, all hell broke lose, scathing reviews etc.

• However, this past Sunday I checked out their brand new LES store on Grand Street. It was a frenzy but really fun, enormous lines for everything from checkout to free ice cream (a big hit!).
• This Target, at 22,500 sq. ft., occupies one floor in a building that is part of Essex Crossing.
• The ground floor will be home to a new Trader Joe’s come October.
• Target is localizing smaller stores to their neighborhoods. In this instance, young families. Hence, it’s all about the kids: toys, children’s clothing, housewares. A sprinkling of the essentials that a family with kids would need.
• Staying on the neighborhood theme, 30% of the employees were hired from the surrounding communities as well.
• That said, this store is too far away from me to become my go-to. I also don’t think their food section will survive – especially once Trader Joe’s opens.

Overall, I am not convinced that these small format stores have what it takes to survive in big urban metros. The selection is small, I honestly don’t know what I would come here for. There is not a single item they carry that I can’t more conveniently buy from Amazon or walmart.com (and get delivered for free).

 

Read on below for 5 more examples of how retail is evolving – from high to low end.

 

URBN’S DEVON YARD PROJECT: Opened August 16

 

 

Am planning to spend the day in PA.  to check this out. Unclear to me if there are any NEW stores in this project or just new restaurants. But sounds interesting.

• Devon Yard consists of five freestanding buildings that house the restaurants, stores (Anthropologie, BHLDN and Terrain), and an event space. The structures incorporate local materials, such as Pennsylvania field stone and reclaimed barnwood, and feature a vernacular farm and greenhouse style.
• It sits on six acres in the heart of Devon PA. It also marks 10 years since the first-ever Terrain location opened in Glen Mills in 2008.

Here are some pics the company posted:

 

WALMART FUEL STATIONS

These 3,000-square-foot convenience stores with fuel pumps are being built all over Texas.

• Some free-standing and some in the parking lots of existing Walmart Supercenters that don’t already have gas pumps.
• Customers can buy quick items, including sandwiches, pizza, snacks and coffee, as well as bread and milk.
• This will be a huge success! Walmart is on a roll!

 

KOHL’S + ALDI + AMAZON

 

Kohl’s is downsizing its real estate footprint and Aldi will be Kohl’s first partner to sublease space in its downsized stores.

• Kohl’s is adding Aldi to as many as 10 stores this year in a pilot test.
• Kohl’s has also partnered with Amazon to sell Amazon products and accept Amazon returns in its stores.

 

NORDSTROM LOCAL

 

No inventory, just services? The first of these stores opened last October in Los Angeles.

• Must be working, concept is being expanded.
• The stores carry no inventory, you shop online and then come to this “service hub” to try on/pick up your merchandise. You can also get alterations done here.
• Will be checking it out on my upcoming Los Angeles trip.

 

CO-WORKING AT OFFICE DEPOT?

 

The company announced it is piloting its first-ever coworking space in its Los Gatos, California location.

• The coworking space comes as the company expands its Workonomy platform in a bid to be less reliant on retail revenue.
• Workonomy includes DIY copying, printing, packing, and shipping as well as a new line of tech-support kiosks that will offer “direct, on-demand access to Office Depot’s technology experts.”
• This does NOT augur well for Office Depot. Businesses that are forced to squeeze income out of their space with gimmicks like this are on life-support. I’ve seen numerous restaurants try this and every single time, they are out of business within a few months.

 

Bottom Line.

If I were a betting woman, I would put my money on Walmart’s Fuel Station and on the Kohl’s+Aldi partnership.

I wish I could be more enthused about the small formats but that middle-ground seems to be the hardest territory to navigate successfully.