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Apr 19, 2023Liked by Addison Del Mastro

There's one of these mini Targets in my Chicago neighborhood, anchoring the ground floor of a newish mixed-use development. It always seems fairly busy despite the existence of a traditional big box Target about a mile away. It probably helps that it's on a busy corner that sees a lot of foot traffic with multiple nearby bars and restaurants (including some that are in the same building as the Target). I suspect you need some level of foot traffic beyond just the people who live in the building above the store to make these type of businesses viable.

Personally, I shop at both Targets. I drive to the bigger store if I want something that the smaller store doesn't carry or if I plan to buy more than will comfortably fit in my backpack. Otherwise, I prefer the convenience of walking to the smaller store and not having to deal with traffic or parking.

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Apr 19, 2023Liked by Addison Del Mastro

Sadly, I think in these areas that are urbanizing - but not quite there yet - the allure of driving to the more convenient/cheaper store that benefits from the mega-economies of scale is just too strong. It will take a lot more urbanizing before that equation shifts. My favorite example is Trader Joes in Brookline MA near where my daughter lived. It's an extremely small format, even for a TJs, but it is jammed every day/hour they are open because so many people live close without cars. For these places you mentioned in your article, in the short term the property owner will probably take a hair cut (explicitly or implicitly) to rent them to smaller/down scale retail - extend and pretend as it's called - or leave them empty and hope. Either that or some supply chain economic disruption will make smaller scale possible, but that is a scenario that has a plethora of ancillary problems that I think no one wants to see (but according to some like James Howard Kunstler is inevitable).

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