Most major metros have had zero new full size Target stores over the last decade. Only small formats. The greater Houston area is one of the few to get full size stores. Target stopped building Super around 2010.pseudo3d wrote: ↑April 27th, 2024, 6:42 pmThe other thing about the so-called "big" Target stores is that like modern H-E-B builds/remodels a lot of that space is dedicated to curbside/delivery. Of course, H-E-B isn't going anywhere, the land it holds alone is worth a fortune. At the same time, I'm not sure if DFW is the "future". H-E-B had to build up in Houston with the Pantry stores and mostly landed their original #1 market share through a number of happy accidents that befell its competition. In DFW, they seem to be going for the "Wegmans of Texas"-style approach with super-large, upscale-leaning stores (which I would have to disagree with, as their bakery selection has taken a nosedive after COVID and never recovered, and as for their delis, there isn't much to them), while more working-class neighborhoods like Redbird will be getting Joe V's.HoustonRetail wrote: ↑April 27th, 2024, 11:42 am I have to back pesudo3d up on this. The local rags have already paraded around this data and will likely have some trickle-down influence. Target has also built some large stores like Katy and New Caney, which have been lauded as being "huge" when, in reality, they're smaller than our existing Super Targets and only carry a standard P-Fresh array of groceries, and feature no service departments. In fact, multiple reviews of the New Caney store insist that it's a small Target, which it certainly is not (135k Sqft.).
That being said, the data and the methodology are questionable, but there is likely at least a grain of truth to it. Another important note for me was that Kroger outpaced Walmart as well, which was number 2 in 2022. HEB has been on a building streak, but their new stores are getting further and further out. Even in the closer suburbs like Katy, they built an EFC (fulfillment center) and a Joe V's (discount banner) rather than springing for a new store. Anecdotally, the consumer base both here and in San Antonio seems to be taking more issue with HEB. Price hikes on private label items have consumers buying name brand for usually only a few pennies more. Still, the problem is name brands at HEB are often priced similarly to the competition. I don't think HEB is on the way out, and I wouldn't be surprised if they were back on top next year, but I also think the tide is shifting. DFW is HEB's future, at least at the moment.
They are not building bigger back rooms for online stuff either. They instead are building the standard backroom but only half of it is merchandise now, using sliding racks to eliminate aisle space. They also increasingly are using storage trailers and containers like Walmart. They do seem to have less wide open wasted spaces in the new formats which I think drives a perception of being smaller.