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For many city-dwellers, getting to a Target store means going to the suburbs. However, the company has begun opening what they refer to as small-format stores in dense urban areas. They have recently announced plans to open a small-format store in Spring Valley.

As you might expect, there are mixed reactions to the announcement. The Spring Valley store, which is slated to open in 2020, will be the fourth small-format store in Southern California.

The Positive Economic Impact of Target

Target’s small-format stores are designed to serve the neighborhoods where they are located. Each store sells products that the company has determined will appeal to residents, and on the surface at least, that might seem like a good thing.

Some of the economic benefits to residents include:

  • Low-priced home goods and other items in one location
  • Up to 75 jobs available for people who live in the area
  • Convenient in-store pickup for customers who order online

For those reasons, some Spring Valley residents have only positive things to say about the new Target store. They’re excited about the prospect of affordable shopping.

The new Target store will be where the old K-Mart used to be. It’s a space that’s been standing empty for a while, and the prospect of having a new store there is exciting to many from Spring Valley.

The Negative Economic Impact of Target

There are undeniably some benefits to having a small-format Target store in the neighborhood. However, some in the area – and particularly business owners who operate small retail stores in the Spring Valley area – have concerns.

The opening of a Target store poses what could be an existential threat to small businesses in the area. It’s very difficult for a small retailer to compete with Target’s prices.

Large retailers like Target can take advantage of bulk discounts when they purchase inventory. Then, they pass those savings on to their customers. However, small retailers, who may only have room to store a small amount of inventory, pay more for their stock. As a result, they must charge a higher price than a store like Target to pay their overhead expenses and earn a profit.

The convenience factor also plays a role in how people shop. Some small business owners worry that if residents can have a one-stop shopping experience at Target, they may take advantage of it even if there are other stores they prefer.

It’s difficult to predict what will happen once the new store opens next year, but it’s certainly understandable that Spring Valley’s citizens have some questions and concerns about what the new store will mean for them.

Target has already opened a small-format store in South Park, with new locations also planned for North Park and Ocean Beach in 2020.

Conclusion

The planned opening of a new Target small-format store in Spring Valley has residents talking. It’s likely that this will be an ongoing discussion that will continue through the planned opening and into the future – and it’s part of a larger, nationwide conversation about the future of retail. Learn more about what’s happening in Spring Valley with our Spring Valley community blog.

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