In today's video, analysts Austin Smith and Brendan Byrnes discuss Target's newest retail strategy: smaller urban locations. Wal-Mart attempted the same format years ago without success, but the current population shift away from suburban locations and toward more urban areas bodes well for Target. The company's cheap-chic image also lends itself better to urban success. What's more, the nature of consumer buying habits at these locations leads to more repeat high-margin purchases than at big-box locations.

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