This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cities Need More Starbucks, Not CityTargets

NEW YORK ( TheStreet) -- A few months ago, after visiting CityTargets in Downtown San Francisco and near UCLA in Los Angeles, I called Target's (TGT) urban concept stores major disappointments, though not necessarily epic failures.

Here's the deal: To refer to what Target does in core neighborhoods of big cities as a "concept" belittles the word. I always thought a concept was something bigger than an obvious and poorly-executed idea. There's absolutely no innovation in Target's urban push. It's merely a workaround of city planning regulations and activist opposition.

We'll get updated numbers from Target shortly after it reports earnings on Wednesday, but don't expect much change from the above-citied article. CityTargets -- speaking quantitatively ( actual square footage data) and qualitatively (the way they "feel") -- are hardly different from any other type of Target outpost, except SuperTargets.

Starbucks Is Urban, CityTarget Is Not

When I lived in San Francisco, I was a bit of an urban activist. In 2005, I aided a neighborhood association's efforts to keep Home Depot (HD) from locating in the city. We lost. As is typical in these battles, all the big retailer has to do is make concessions on square footage, parking spaces and how many local jobs it will create and the project gets approved.


City governments and neighborhood groups suck in this regard. They talk a big game about character, but all they really care about is traffic. It's quite sad. And big box stores such as Target and Home Depot know this. They come in, weather opposition, scale down plans and, nine times out of 10, win approval.

Home Depot never actually moved into the contested space, despite paying rent on the land for months. I think Lowe's (LOW) is there now. In any event, neither project, as constructed, adds much to this still rundown portion of San Francisco. They're merely suburban accoutrements forced onto the unkempt fringes of an otherwise great city.

That's precisely what Target is doing throughout the urban areas it's starting to inhabit. Bringing, for all intents and purposes, suburban infrastructure to the city. This is bad for two primary reasons.

Number one, for every CityTarget that goes up, as conceived, in cities such as San Francisco and Los Angeles, existing character erodes and the dream of building something that adds to the urban fabric dies just a little.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs