BUCKING THE TREND

Target, Sam’s Club go bigger to meet needs of omnichannel shoppers

By Marianne Wilson

At a time when many retailers are downsizing to smaller-format stores, Target Corp. and Sam’s Club are betting that bigger is better — especially when it comes to supporting same-day services.

Target Corp.’s new store strategy involves a bigger footprint with more space for fulfillment of online orders. At 150,000 sq. ft., the discounter’s new larger-format store, which made its debut in late 2022 in Katy, Texas, is more than 20,000 sq. ft. larger than a typical Target.

The store is designed with a larger backroom fulfillment space to help support Target’s continuing growth in fulfilling sameday online orders from its stores. (Target stores fulfill more than 95% of the retailer’s digital orders and same-day services accounting for more than 10% of its overall sales.)

The larger stores also give Target extra space to offer a more complete assortment of merchandise, from expanded food and beverage offerings to exclusive brand partnerships.

In addition to the larger format, Target has reimagined its store design, with a more open layout and new elements to better serve customers and employees. Larger windows and a more open layout bring in more natural light.

The design infuses elements such as plants and regionally sourced reclaimed wood to create a welcoming space. Community-focused elements, from native exterior landscaping to localized product offerings, help connect the store to the surrounding locale.

To serve its employees when they are off the sales floor, the updated design has flexible rooms — complete with comfortable furniture — that can be easily rearranged to serve a team’s varying needs.

Target stores and operations play a pivotal role in its goal to achieve net zero emissions by 2040. The retailer’s new stores and remodels will include updates such as natural (CO2) refrigerants to help lower emissions and EV charging ports for customers Many locations will include rooftop solar panels.

Starting in 2023, more than half of Target’s full store remodels and almost all the retailer’s new stores will include elements of the new design. Beginning in 2024, all of Target’s remodels and new stores will feature the majority of the reimagined design elements.

Sam’s Club

Sam’s Club is embarking on its most aggressive expansion in years. The Walmart Inc.-owned membership warehouse club retailer plans to open more than 30 new clubs across the United States during the next several years. Sam’s, which operates approximately 600 stores in the U.S., including Puerto Rico, has not opened a new club in years.

Notably, the new Sam’s Clubs will be approximately 160,000 sq. ft., which is about 20,000 sq. ft. larger than most current locations. The extra space will allow for significant expansion in the stores’ omni-fulfillment footprint, with a dedicated space for curbside pickup, delivery to home and ship-from-club orders. The area will include walk-in coolers and expanded doors for outgoing delivery truck efficiency.

The new clubs will also boast a larger healthcare space, with a patient waiting area, health services suites, private consultation rooms and dedicated hearing and optical centers.

Sustainable: Sustainability will play a prominent role in Sam’s new locations . The company is designing its future clubs with zero-emission strategies built in through electrification of equipment, including electric ovens, HVAC equipment, water heating systems, and low-emissions refrigeration systems.

The retailer is also committed to installing energy-efficient LED lighting, electric vehicle charging stations for delivery vehicles and new “green” refrigerant in its new locations.