The official announcement of the small-format Target store in Parsippany's Troy Hills Shopping Center marked a significant step for the retailer and its footprint in New Jersey: a move from traditional stores and a relatively new focus on high-density urban centers.
On July 11, Federal Realty Investment Trust, representatives from Target and officials from Parsippany described the new 65,000-square-foot “small-format” store that is projected to be completed in March 2018 and will employ more than 75 people.
“We’re thrilled to bring our second small-format Target to New Jersey with a location in Parsippany’s Troy Hills Shopping Center,” Mark Schindele, senior vice president of properties at Target, said. “The Troy Hills Target store will be easily accessible and convenient for the many families and residents in Parsippany and will provide the best that Target has to offer, including stylish and affordable apparel, home accessories and beauty products, along with our grocery offerings.”
The retailer has set a goal to operate 130 of these small-format stores by the end of 2019. So far, 36 small-format stores have been opened, including one in Closter and now Parsippany.
A spokesperson for Target, Kristy Welker, said the company is opening nine small-format stores this week alone.
“Target is opening 30 stores this year, 28 of them being that small-format store,” she said. “It is definitely part of Target’s strategic priorities to reach guests that we typically didn’t with our other traditional format.
“We’re also reinventing the look and the function of our existing stores through remodeling.”
Minneapolis-based Target currently operates 1,771 traditional stores and 36 small-format stores throughout the country. Welker said the retailer will operate 1,816 stores by the end of the week, thanks to new small-format openings.
“The space previously occupied by Pathmark in the Troy Hills Shopping Center was the last available big block of retail space left in Parsippany,” Parsippany Mayor Barberio said. “I am very pleased to welcome Target to our community. Having a corporation that is ranked (No.) 25 in Fortune magazine’s list of ‘Most Admired Companies’ providing job opportunities and filling the vacant space is a real coup for Parsippany. Our residents and neighbors will be thrilled to join me in welcoming this wonderful corporation to town.”
Welker said that, while the company values its presence in the greater New York City area, and intends to open more small-format stores in the region, it has no plans to open any other stores in New Jersey as of now.
"The great regional draw and strong mix of best in class retailers makes Troy Hills a natural fit for Target’s expansion of their small-format concept,” Chris Fleming, director of asset management for Federal Realty Investment Trust, said. “The addition of Target is just the start of exciting things to come for Troy Hills Shopping Center, including a planned redevelopment to give the center a whole new look and feel.”
Target unveiled its first small-format stores in Chicago, Seattle and Los Angeles back in July 2012. And, although the store format is considered small, Welker said the properties have a wide range when it comes to square footage.
“We’re not prescriptive with that, and that is what is different about these,” she said. “Our smallest location is at UC-Berkeley, and it’s 12,000 square feet. We have one, at the time when it was the City Target format, that is 160,000 square feet, and that our Boston-Fenway location. That is a three-level store.”
Looking into the future, the retailer will also open a new prototype in Texas, which will be used to evaluate how Target can better serve customers out of traditional 125,000-square-foot locations.
“This year, in October, we will open a brand-new store in the Houston market, which we’ll call our Target next generation of store design,” Welker said. “It is a 125,000-square- foot store that will be a new shopping experience for guests. It will have two separate entrances for guests, one really catered around inspiration, and it will have all of the home and apparel on that side of the entrance. On the other entrance, it will be focused on convenience and ease. So, there will actually be two dedicated parking spaces in those stores to receive their online order to be brought out to them. It will have grocery on that side of the store.
“That new store format will inform how we remodel 600 stores by 2019.”