- Kristopher Fraser |
Target has announced that they have signed a lease for a 43,000-square-foot store at 34th Street in Manhattan. This move places them in the vicinity of Macy's famous Herald Square location.
The store is slated to open in October, making it Target's third small-format unit in Manhattan. The two small-format stores are located in Harlem and Tribeca. They have their sites on the East Village and Hell's Kitchen for potential future locations.
The small-format stores are expected to help Target make a turnaround, because their net earnings for the fourth quarter ending January 28 declined 42.7 percent to 817 million dollars. Sales for the three months declined to 5.4 percent to 20.6 billion dollars. The bright spot was digital sales, which jumped 34 percent in the fourth quarter, but it wasn't enough to offset the slump in brick-and-mortar.
Target to open location by Macy's Herald Square
The retailer plans to spend 7 billion dollars over the next three years on a capital investment program and sacrifice 1 billion dollars in operating profit so they can compete against other retailers like Wal-Mart and TJ Maxx.
New York is a primary market for the company's growth. Target has a total of 32 small unit stores, and have set a goal to have 100 by 2020.
The new 34th Street location will feature both apparel, groceries, food-to-go and a CVS pharmacy.
“The addition of the Herald Square store location is exciting for Target as we expand our footprint with small-format stores in Manhattan,” said Mark Schindele, senior vice president, properties to WWD. “Not only will we be able to serve the thousands of working professionals that travel through Herald Square each day, but we’ll have the opportunity to showcase Target’s exclusive brands and compelling offers for the many tourists from around the world who shop in this vibrant neighborhood in Manhattan.”photo: via Target Facebook