Big-box retailers shift to smaller store formats to reach urban neighborhoods

Big-box retailers like Target, Ikea, and Walmart are shifting to smaller store formats to better fit into affluent neighborhoods. This change aims to provide a more personalized shopping experience while reducing costs. Target has opened 10 new stores under 20,000 square feet, compared to its usual 125,000 square feet. This allows the chain to establish a presence in urban areas and near colleges. Ikea is also adapting by introducing smaller locations that focus on customer interaction for home furnishing solutions. Retail experts note that smaller stores can enhance customer spending per square foot, benefiting both shoppers and retailers.