Target to close 4 underperforming stores in May

Target Corp. on Tuesday confirmed it will close four underperforming stores on May 13.

All of the soon-to-be-shuttered locations are among Target’s small-format stores, which are less than 54,000 square feet—less than half the size of the retailer’s typical box. But the retailer told WGB that it remains committed to the smaller-footprint design and that these locations are closing because of site-specific issues, such as ongoing construction and limited foot traffic.

“The decision to close any of our stores isn’t something we take lightly,” the retailer said in a statement. “It’s an action we take only after multiple years of working to improve performance.”

The stores scheduled to close are in the Uptown neighborhood of Minneapolis on Lake Street; Philadelphia’s Washington Square neighborhood on Chestnut Street; College Park, Maryland, on Baltimore Avenue; and Falls Church, Virginia, on Washington Street.

All employees at these stores are being offered work at nearby Target locations, the retailer said.

“We remain committed to these areas, including the more than 50 stores we operate in each metro area,” Target noted.

Target currently operates more than 150 small-format stores, with plans to open about 10 of them this year. That’s about half of Target’s planned openings for 2023, the retailer said.

Target currently lists 47 stores in its pipeline, with 17 noted as being under 50,000 square feet.

Target assesses stores for potential closure as part of a multi-year process. Some years it opts to keep all stores open, some years it closes two to four locations, the retailer said.

Target ended its fourth quarter with 1,948 stores, a net increase of 22 from a year ago.

The Minneapolis-based retailer said late last month that same-store sales increased just 0.7% for the quarter ended Jan. 28, with a 3.6% decline in digital sales. Operating income for the period fell 44.7% over the prior year, to $1.2 billion.

“We’re planning our business cautiously in the near term to ensure we remain agile and responsive to the current operating environment,” Target CEO Brian Cornell said in a statement at the time. “As we plan for the year ahead, we will continue to make robust capital investments and pursue efficiency opportunities in support of our long-term growth.”