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Target sets bullseye on Times Square with new lease

It will be the retailer’s 10th small-format store in Manhattan

Target ads (right) seen on the corner of 42nd Street Eighth Avenue (Credit: Google Maps)
Target ads (right) seen on the corner of 42nd Street Eighth Avenue (Credit: Google Maps)

Target is continuing its leasing spree in New York City, this time with a shop in Times Square.

The big-box retailer has inked a lease for a 33,000-square-foot store on 42nd Street between Seventh and Eighth Avenues, CNBC reported. The store will be Target’s 10th small-format shop in Manhattan, and is slated to open in 2022.

Even as other retailers shutter stores and file for bankrupcty, Target has found a way to make it work. The retailer has made aggressive moves into high-population areas like New York City and college campuses, and continues to experiment with smaller-footprint stores than its typical big box model.

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Earlier this year, Target signed a 15-year deal to take on about 23,700 square feet of space in Manhattan’s Washington Heights.

Target has also cut costs by fulfilling online orders from stock rooms even in small-format stores, according to CNBC. The company also expanded options to buy online and pick up at stores to reduce shipping costs.

Target has been exceeding analyst’s expectations of late, while other retailers faltered this year. As of Wednesday’s market close, Target’s shares had risen nearly 88 percent in 2019, while the S&P 500 Retail ETF (XRT) is up about 7 percent. Target’s market cap is about $63 billion. [CNBC] — Georgia Kromrei

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Retail