Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

How Retailers Can Win Big By Going Small

by 
Bracha Arnold
 on 
November 18, 2022
How Retailers Can Win Big By Going Small

Our latest white paper takes a closer look at the growing trend of retailers adding small-format stores to their fleets. We dove into the foot traffic data of four leading chains to see how retailers can use small-format stores to increase visit density, cater to niche audiences, and foster brand loyalty. Below is a taste of our findings. For the full report, read the white paper here.  

Target – Targeting the Right Audience

Small-store formats can help retailers offer a curated product selection to specific audiences. Target has a typical store format that spans around 130,000 sq. ft, but the chain has been incorporating small-format stores into its fleet since 2012. Today, the chain operates over 150 small-format stores, including around 25 small-format stores located on or near college campuses that cater specifically to students. Target as a whole is already one of the strongest retailers in the brick-and-mortar space. Still, foot traffic data indicates that the company’s small-format stores are performing even better – the brand’s regular-sized stores saw 15.1% growth in Q3 2022 while small-format stores saw Yo3Y foot traffic growth of 35.7% in that same quarter. 

And unsurprisingly, the median age at these college stores skews young. The median age of Target visitors nationwide is approximately 35, while visitors to the campus-oriented stores have a median age of 28.9 – which may mean that Target is benefitting twice from its campus-oriented stores. First, the company has succeeded in creating a shopping experience that caters specifically to college students, which is likely driving the success of these campus-oriented stores. And second, by cultivating positive engagement with younger customers, Target could be fostering continued brand loyalty for years to come.  

Targeting a Smaller Trade Area

Perhaps more surprising is that Target’s small-format campus stores successfully draw healthy traffic volumes despite their relatively small trade area. The small-format Target near Ohio State University (OSU) had a True Trade Area (TTA) of 4.2 square miles between January and September 2022, while two nearby full-size locations in Columbus, OH, had TTAs of 22.8 and 29.3 square miles, respectively, during the same period. And the trade area of the OSU small-format Target is not just smaller – it is entirely subsumed within the trade areas of the larger, nearby Targets, making the success of the small-format campus store even more impressive. 

Attracting a new customer base within an area served by multiple stores is no easy task, and the campus Target stores did just that by carving out a new customer segment within Target’s trade area. And despite the overlap with nearby, larger Targets, the campus stores had higher Yo3Y visits than full-size locations.

The success of Target’s small-format campus stores in areas already served by full-size locations highlights how retailers can make use of small-format stores to reach new audiences.  

For more insights into small-format retail, read the full white paper here.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
Text Link
White Paper
Text Link
Target
Text Link
Small Format Stores
Exploring Luxury Hotel Brands’ Guest Segmentation
The St. Patrick’s Day Effect
How Can JOANN Make a Comeback?
Panera Bread Well Positioned for Possible IPO
Who Will Benefit From Family Dollar’s Downsizing?
Dave & Buster’s and Main Event Entertainment: Food and Fun for Everyone
Darden Brands: Location Analytics and Consumer Behavior
Nike and lululemon: a Strong 2023, Sprinting into 2024
Where Is Retail and Dining Foot Traffic Thriving in Early 2024?
Placer.ai White Paper Recap – February 2024
Three Retail & Dining Chains That May Surprise in 2024
Specialty Discount Chains Rock Retail Therapy
Placer.ai Mall Index: February 2024
Placer.ai Office Index: February 2024 Recap
Ulta Beauty Continues To Shine
First Watch Sails Into 2024
Hibbett Sports and DICK’S Sporting Goods: A Psychographic Analysis
Checking in With Discount & Dollar Stores
Peeking Behind The Curtain: Movie Theaters in 2023 and Beyond
Diving Into Brick-and-Mortar Eyewear
Getting Into Gear: Exploring The Auto Part Industry
Recapping Valentine’s Day 2024 Foot Traffic Trends
Fitness: A Strong Start to 2024
Dutch Bros. Continues To Percolate Visits
Super Bowl 2024: Placer.ai’s Postgame Foot Traffic Analysis
CAVA & sweetgreen Are On the Rise
Hats Off For Off-Price
Who Is Shopping at Malls?
Drilling Down Into Home Improvement
Walmart, Target, Costco & Superstore Space 2023 Recap
Catching Up With Shake Shack and Wingstop
Something To Chew On: Demographic Shifts at Steakhouse Chains
Placer.ai Office Index: Looking Back at 2023
Recapping RBI & Yum! Brands’ 2023 Foot Traffic Performance
Placer.ai White Paper Recap – January 2024
Who Shops at Anthropologie and Urban Outfitters?
Three Taco Chains to Watch in 2024
Starbucks and Dunkin’: 2023 in Four Data Points
Who Visits CVS and Walgreens?
Fashionably Frugal: Apparel in 2023
Catching Up With Fast Food
The Grocery Sector in 2023: An End-of-Year Recap
3 Mall & Shopping Center Trends for 2024
Bakery Chains Rising To The Top
Placer.ai and Esri Partner to Deliver Geospatial Analytics
Tampa Tourism Trends
Going For The Green: The Changing Dynamics Of Country Clubs
Christmas Day Dining Recap
Major Urban Shopping Districts – Holiday Season Recap
Placer.ai Office Index: December 2023 Recap
Recapping the 2023 Holiday Shopping Season
Placer.ai White Paper Recap – December 2023
7 Retail & Dining Segments to Watch in 2024
Diving Into Holiday Season Favorites
Super Saturday and Christmas Eve Eve: A Winning Combination
3 Budget Grocery Chains Finishing 2023 On a High Note
Making It In America: International Chicken Chains Bring The Heat
Domestic Tourism at a Glance: A Q3 2023 Roundup
Five Pizza Chains On The Rise
Jewelry Brands Taking Advantage of the DTC Opportunity
Secondhand News: Kids' Thrift Shops
Recapping 2023’s Dining M&As
MetLife Stadium Kicks Off Football Season
Placer.ai Office Index: November 2023 Recap
Small Coffee Chains Brewing Big Success
Placer.ai White Paper Recap – November 2023
Thanksgiving Travel 2023 Recap
Checking in With Nike and Lululemon
Black Friday 2023 Retail Recap
Starbucks’ 2023 Holiday Menu & Red Cup Day Performance
Turkey Wednesday 2023
Who Attended the 2023 Pickleball Championship? 
Three Surprising Holiday Shopping Trends
What’s in Store for Ulta Beauty This Holiday Season?
Best Buy and Department Stores: A Holiday Deep Dive
Discount & Dollar Stores: Strength Toward The End of the Year
The State of Off-Price Retail: Discounts Seal The Deal
Placer Mall Index Recap: October 2023
Placer.ai Office Index: October 2023 Recap
Retail Corridors Ahead of the 2023 Holiday Season
California, Here Gap Comes
Checking in With Home Improvement
Getting Into the Glasses Game: Warby Parker Takes Over
Fitness Positioned for a Strong 2023 Finish
White Paper Recap: October 2023
Coffee Giants Brewing Up Business
Popeyes and Burger King Lead the Way
Diving into Yum!
Looking Ahead to Black Friday 2023
Blockbusters Drive Movie Theater Comeback
Crocs and Boot Barn: Shoe-Ins for Success
McDonald’s and Chipotle's Winning Recipe
The State Of Steak: Checking in With Texas Roadhouse
Pleasant Pastimes: Pickleball Potential Proves Potent
Who’s Driving Downtown Manhattan’s Weekend Revival?
Diving into Downtown Manhattan Foot Traffic Trends
Rite Aid: Rightsizing Right
Major League Soccer: Its Die-Hard and Casual Fans
The Anchor Recap: September 2023
Placer.ai Office Index: September 2023 Recap