Target plans opening near NYC: Greatland would be most accessible for Manhattanites

DSN Retailing Today, April 7, 2003 by Emily Scardino

JERSEY CITY, N.J.--Manhattanites with Target envy will soon have one more option for getting their fill of cheap chic. Coming next summer, the Minneapolis-based discounter is scheduled to open a Greatland store just beyond the island's southern tip, in a large New Jersey port city at the mouth of the Holland Tunnel. It will be Manhattan's most-accessible Target store to date.

Slated to open in June 2004, the new Target store in Jersey City will be less than a minute from the tunnel, one of the city's busiest Hudson River crossings. New York City residents will be able to reach this Target in as little as 10 minutes on the Port Authority's PATH train, which has stops throughout midtown and downtown Manhattan.

Though the retailer has been circling New York for some time, prohibitively high rents and a paucity of supersize foundations failed to appeal. For now, it is clear that Target has decided, like umpteen commuters, to move to Jersey.

"Target has signed a lease and is preparing to construct a new 170,000-square-foot store that will open in spring 2004, building out the pre-existing structure that is 130,000 square feet," said Edward Cortese, senior vp at The Lefrak Organization, in an interview with DSN Retailing Today.

Like many of New York City's former tenants, Target has found that the real estate prices across the Hudson River is appealing, as well as its accessibility and dense population. Jersey City has become something of a boomtown in the past 18 months. Next door to Target's upcoming location, two JPMorgan Chase high-rises recently opened on Washington Blvd., part of the financial district's continued move across the river that was stepped up after Sept. 11. It is clear, according to local residents, that just as many NYC dwellers are commuting into Jersey City as are commuting into Manhattan each morning. This observation is backed by the significant expansion underway at the Pavonia/Newport train station terminal--the stop Target shoppers will exit at.

Target has obviously set its sights on this area for some time, based on its heavy promotional efforts in the area. Target set up shop, or rather docked this past Christmas at Chelsea Piers on 14th Street in NYC, only a few blocks away from the ferry and trains that take passengers to Jersey City. The retailer was also the first to engage in underground advertising in the PATH train tunnels. Using an innovative method for the first time in the Tri-State area, the retailer placed a sequence of advertisements that had the effect of a 30-second animated advertising spot for commuters between New York and Jersey City.

Besides NYC buses and ferries that stop minutes away, the recently completed New Jersey Lightrail transit system also takes shoppers from Hoboken, Bayonne and a host of surrounding locales right to the Target site. Via Vespa motor scooter, bicycle or car, this site is easily accessible. There is no other site near Manhattan that is as easy to get to, whatever the mode of transport.

The Newport Mall, located about a five-minute walk from the real estate Target has selected, is already a major draw for both New York City and local shoppers. Federated replaced its closed Sterns location with a brand new Macy's adding to the equity of the Simon-operated mall, which also houses Sears and JCPenney as anchors.

Approximately six months ago, Lefrak canvassed its substantial residential community in the Newport/Pavonia area of Jersey City, asking which mass-market retailer they would prefer in the community-Wal-Mart or Target. An overwhelming 82% chose Target, which prompted Lefrak's now-finalized lease arrangements.

Target is replacing the current tenant, ethnic supermarket Foodmart International. The Lefrak organization is evicting Foodmart International because of failed lease negotiations.

All things considered, this location just a stone's throw

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