Target has chosen three New York neighborhoods in its plan to attract younger shoppers and expand in key urban areas.
It expects to operate 130 small-format stores across the U.S. by the end of 2019, and already has smaller stores downtown in New York's Tribeca neighborhood and across from Macy's at Herald Square. The retailer also has a larger location uptown in Harlem.
The plans announced Tuesday for three new small-format locations are on the Upper East Side and Staten Island and in Astoria, Queens.
"All three of these new stores will offer the best of Target in that borough, yet curate the assortment to meet the needs and preferences of the nearby community," Mark Schindele, senior vice president of Target's properties, said in a statement.
The Upper East Side store, at 70th Street and Third Avenue, will open in 2019. The Staten Island store, also slated for next year, will be at Forest Avenue Plaza. The Astoria location, near Ditmars Boulevard and 23rd Avenue, will open by 2022.
Target has already announced plans to open smaller stores in the Lower East Side and East Village this summer, along with a small-format store in Hell's Kitchen for 2019.
According to CEO Brian Cornell, bricks and mortar are still a key part of Target's strategy to win more shoppers, who are also increasingly ringing up purchases online. The company has said it's fulfilling more online orders out of its stores, giving them a crucial role in Target's supply chain and aiding in speeding up "last mile" delivery.
Cornell has also said the small-format stores are more profitable per square foot than Target's larger locations, which can be greater than 100,000 square feet. Its new stores, in comparison, are typically less than 40,000 square feet, depending on location.
Target said Tuesday that shoppers should expect the new stores coming to New York to include amenities like a CVS Pharmacy and Starbucks. The Upper East Side location will have a broader beauty and food assortment, while the Astoria location will have more home decor.
Target isn't the only retailer making a bigger bet on smaller stores today.
Kohl's has also laid out an aggressive strategy to open smaller stores and divide its bigger locations, looking for co-tenants to sublet the extra space. Macy's is also looking for ways to divide its real estate, making better use of square footage that has become less profitable to stuff with inventory.
Target said its three new small stores will each employee up to 100 people.
— CNBC's John Schoen contributed to this reporting.