11 mini Targets open this week, including one in Orange and 2 in Los Angeles
Bernice Sanchez shops with daughter Autumn, 1, at the New Target in Orange on Wednesday, October 18, 2017.(Photo by Mindy Schauer, Orange County Register/SCNG)
Facing overwhelming competition from e-commerce titan Amazon and extreme discount retailers, Target is unleashing 11 new small-format stores this week including one in Orange.
The 41,000-square-foot store, at Chapman and Yorba is the second small format Target to open in Orange County. It quietly opened to shoppers Tuesday night after a private ribbon cutting with city officials.
The Orange location, which replaces a closed Ralphs, has a much larger collection of food and merchandise than the small-format store that opened mid-July in Irvine.
The new stores are part of Target’s strategy to cater to on-the-go shoppers searching for quick and convenient trips for everyday essentials and basic groceries.
“It’s an assortment based on the neighborhood’s needs,” store team leader Francisco Arellano said.
While the newly opened University Center store near UC Irvine caters to the college community, the Orange store offers a wider assortment in a store that’s twice as big.
It features children’s clothing, men and women’s apparel, shoes, purses, bedding, bathroom decor, towels, camping gear, three aisles of toys, electronics, school supplies, fresh and frozen foods, organic produce, beauty products, a CVS Pharmacy and a Starbucks.
“It’s a little bit of everything,” Arellano said.
In the back of the store is a sizable “Market” section dedicated to produce, frozen meals, fresh meat, deli meats and dairy products. Nearby is a large aisle featuring craft and domestic beers in large open coolers.
Another nearby aisle is dedicated to more than 200 types of wines from top California wineries including Josh Cellars and Layer Cake. The alcohol selection also features 25 different sparkling wines and a half-row dedicated to bottled spirits from Tito’s vodka to Jimador silver tequila to rye whiskeys.
Tony Hooshmand, 66, of Garden Grove was one of several people who wandered into the store when they heard it was open. In his basket, he had organic packaged lettuce, a half gallon of reduced fat milk and Hot Wheels. He was happy to find the toy cars as he’s an avid collector.
“So far so good,” Hooshmand said of the store’s variety of merchandise and groceries. “This is good for quick shopping. They have everything you want — on top of that — they even have Starbucks.”
He also liked the express checkout lanes. Of the 10 registers, four are self-serve.
“It’s faster, and you don’t have to deal with anybody,” he said.
Target will need more shoppers like Hooshmand.
In 2016, mass merchandise retailers such as Target and Walmart saw sales decline 12.5 percent to $42.6 billion, according to a 2017 food retailing report by Inmar Willard Bishop Analytics.
Who are they losing ground to? E-commerce and limited assortment stores. The two segments made the largest sales gain in the supermarket industry in 2016. Small format stores added 155 locations and increased sales 5.3 percent to $37.3 billion in 2016, Willard Bishop said.
As shoppers demand low prices and convenience, Target began launching these so-called mini Targets in recent years. To date, Target has opened 56 small format stores nationwide. Nine are in the greater Los Angeles area including stores in USC Village, Westwood and Long Beach.
Two other small-format Targets opened Wednesday, Oct. 18 in Los Angeles. One is in Mission Hills (10340 N. Sepulveda Blvd.) and the other opened in Glassell Park (4211 N. Eagle Rock Blvd.). Others opening beyond California are in Minneapolis (Uptown), New York (Herald Square), Brooklyn, Long Island (Port Washington North), Chicago, Oak Park, Ill., Skokie, Ill. and Philadelphia Art Museum.
Target said two more small-format stores are planned for Burbank and Koreatown in Los Angeles in March 2018. The retailer, which has 1828 stores nationwide, plans to operate more than 130 small-format locations by 2019.
The Orange store opens Wednesday, Oct. 18, at 7 a.m. Address: 2620 E. Chapman Ave.