Target Debuts New Larger-Format Store Focused on Online Fulfillment

Target has unveiled plans for its next-generation store design. At nearly 150,000 square feet, the retailer's new larger-format stores will optimize additional space in an effort to support same-day fulfillment services and deliver on its stores-as-hubs strategy for fulfillment of online orders. The new store format recently debuted in Katy, Texas, outside Houston, and is more than 20,000 square feet larger than the chain’s standard locations. The larger stores will offer a full range of merchandise, including an expanded food-and-beverage section, while also featuring backroom fulfillment space that's five times larger than previous spaces.

Total Retail's Take: Target, already a recognized leader in omnichannel services, is ramping up its buy online, pick up in-store (BOPIS) and ship-from-store programs with continued investment in store infrastructure. According to the company, its stores fulfill more than 95 percent of its digital orders, and same-day services account for more than 10 percent of its overall sales. Target is firmly committed to having its stores be at the core of its customer experience, and that includes online-to-offline interactions with the retailer. Reimagining the brick-and-mortar store experience is critical to the success of traditional retailers with extensive physical footprints. Target has done this quite well.