Target Finally Lands in Manhattan
By Tom Ryan
After a 13-year wait, Target has opened its first store in Manhattan
to packed crowds. The 174,000 square-foot store in East Harlem officially opened
on July 25.
Target had been eying the former factory site since the late nineties
but zoning, local business opposition, and other complications caused delays.
Given real estate costs, the store represents the largest investment in a single
project in Target’s history, said John Griffith, senior vice president of property
development, at a press preview last week. But according to the Minneapolis
Star Tribune, he
quickly added: "And we’re expecting the best return, over time."
sales are projected at "north of $90 million" versus a
typical suburban store’s first-year output of about $25 million. A number of
its other nine locations in other New York boroughs already surpass $100 million.
Entering Manhattan is said to represent a breakthrough.
"It’s not about the baby boroughs," Faith Hope Consolo, chairman
of Prudential Douglas Elliman’s retail leasing division, told The Associated
Press. "This is going to plant Target firmly in the urban market.
If you succeed here, there’s no market you can’t own."
Target has been
heralding its entry into Manhattan since turning a floating barge into a
temporary store on the Hudson River in 2002 followed by a comprehensive marketing
campaign, including billboards in Times Square. The store joins a Costco
and Best Buy at East River Plaza on East 117th Street, about a 15-minute
walk from the nearest subway. Locals are expected to make up the bulk of
shoppers but the store is also expected to draw residents from across the
"My husband and I are serious Target fans," Lisa Haney, a Brooklynite,
told the Star Tribune. "We rent a car on weekends just to go to
the suburbs and go to Target. It’s great there’s finally one in the city."
also said its planning smaller stores — 60,000 to 80,000 square-feet — in
Manhattan in the future, though the next one isn’t expected to open for at
least three years.
Overall, Target has been more aggressively targeting urban doors
than competitors, and it now has 10 in Chicago and 33 in Philadelphia. In all,
it has about 150 stores in cities and 50 more that have more than 100,000 people
within two miles, according to the AP.
Kmart actually has two stores
in Manhattan opened in the late nineties, but analysts believe the chic discounter
holds greater appeal to the city slicker.
"It’ll be the de facto price leader in this area," Eric Beder, an
analyst at Brean Murray Carret & Co., told the Star Tribune. "And,
let’s face it. New Yorkers are more cachet to Target than Kmart."
Discussion Questions: How significant is Target’s entry and early success
with its first Manhattan store? Does Target’s aggressive push into urban
areas provide it with a significant first-mover advantage?
- Target takes
Manhattan – Minneapolis Star Tribune
- Target takes Manhattan for the first time with East Harlem store – The
Associated Press/USA Today
- Target to Open First Manhattan Store in East Harlem this July – Target
- Shoppers are elated as Manhattan’s first Target store opens in East Harlem – New
York Daily News
- New Target Store Opens in Chicago Wilson Yard – Target
- Target gives big box an urban look – Chicago Tribune