Over the last few years many of the big box retailers have been experimenting with shrinking their store size layouts. For example, Macy’s, with an average store size at 160,000 s.f., introduced its much smaller “Market by Macy’s” version, which averages 44,000 s.f. in size. Kohl’s also rolled out a 35,000-s.f. version of its store, even though the brand has an 80,000-s.f. average store size. Perhaps the most radical version of this smaller-sized store is when Best Buy introduced a 5,000-s.f. version of its store last July, whereas its usual store size is approximately 38,000 s.f. in size.
Today, however, the pendulum seems to be swinging the opposite direction when it comes to the sizes of these big box stores. Target and Sam’s Club are both perfect examples of this new trend, with both brands announcing they will be opening about 30 new units each that will add 20,000 s.f. to the average size of their stores.
Target opened its first large size store, at 150,000 s.f., in Katy, Texas, last November, and expects to open the remaining 29, beginning in the South and the Midwest, by early 2026. The Katy, Texas, store features an extra-large backroom fulfillment area to accommodate same-day deliveries to the local community, in addition to being able to service the increased amounts of buy online/pickup-in-store orders. The larger-sized store also contains a wider selection of food and beverage goods, as well as more local-based brands from the particular region. Perhaps the most distinctive feature of this large-format Target store is the two drive-thru lanes: one lane is for customers to pick up their online purchases, while the other is devoted to customers wanting to return items.
Sam’s Club, an entity of Walmart, is also embarking on its larger-sized store concept, mainly to provide extra space for curbside pickups and home delivery fulfillment needs. The new truck pickup delivery space will include walk-in coolers to more easily facilitate the process and to improve the freshness of the outgoing produce. The first version of this larger format Sam’s Club will open in Florida in 2024 and will also feature such in-store additions as larger health care configurations, a sushi island section, and a floral service area. If these larger format stores prove successful, expect even more retailers to continue to jump on this trend in the future.
