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Target and Walmart testing smaller urban stores

Target and Walmart see expansion through smaller stores, at least in urban areas. According to Pacific Business News, Walmart’s “Neighborhood Market” and Target’s “City Target” both seek to bring the experience of their brands to areas within cities they have not traditionally ventured.

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From the article:

According to the CoStar Group, Wal-Mart President and CEO Bill Simons said the Bentonville, Ark.-based retailer plans to open more than 200 Neighborhood Market stores in the United States over the next 18 months, which would boost the total number to more than 500.

In Hawaii, Wal-Mart (NYSE: WMT) recently bought the former Macy’s building in Downtown Honolulu for $25.9 million and is currently renovating the 80,000-square-foot space for a new store.

CoStar Group reports Target (NYSE: TGT) is testing its City Target format with seven stores ranging from 80,000 to 100,000-square-feet in Los Angeles, Chicago, Seattle and Portland. Target has four stores in Hawaii that average about 150,000-square-feet each.