Target closed one of its stores in Center City, Philadelphia, nearly seven years after opening the location.
The move to shut down the 19,000-square-foot Washington Square store, located at 1128 Chestnut Street, comes due to years of “declining” performance. The store closed on March 13.
The corporation cited that nearby Rittenhouse Square, Broad Street and Washington Avenue are better-performing locations, according to the “Philadelphia Business Journal.” All 45 workers, part-time and full, were encouraged to work at the surrounding locations following the closure.
The Washington Square location opened in 2016 in a development along with Planet Fitness, Fine Wine & Good Spirits and an apartment complex. Unlike Small format stores, Target’s larger locations are typically 130,000 square feet and offer ample room to complete e-commerce orders in-store.
The company has pointed to a lack of foot traffic in the surrounding area and limited parking as culprits of the underperforming issue among other things. Construction across the street for National Real Estate Development’s medical building for Jefferson Health has also greatly restricted access to the development. The construction is expected to finish next year.
The Target corporation expressed that they are still committed to opening stores in Philadelphia, of which they currently have 50, regardless of the closure.
“The decision to close one of our stores isn’t something we take lightly,” said Kayla Castañeda, a spokesperson for the Minnesota-based company. “It’s an action we take only after multiple years of working to improve performance.”
Beyond closures, Target is also set to open 20 new stores and remodel around 175 existing stores throughout 2023 according to the “Minneapolis/St. Paul Business Journal.”
Target finished 2022 with an unexpected gain in fourth-quarter sales. Although profits dropped, it exceeded Wall Street’s projection after a year of inventory realignment, inflation and skittish consumers.
However, in addition to its Philadelphia store, Target plans to close at least three other small format stores in Minneapolis and two in Washington D.C.
Other retailers have also begun closing stores this year including Walmart, Marshall’s, Best Buy and Bath and Bodyworks because of a failure to meet their expected financial goals.
