1 Strategy That Hits a Bull's-Eye

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.

If you're interested in another higher-growth retailer, make sure you read about The Motley Fool's Top Stock for 2012. It's our chief investment officer's favorite company for the year, and with good reason. It's applying a proven domestic model to a high-growth emerging economy. To access the report before the rest of the market catches on, click here -- it's absolutely free.

The article 1 Strategy That Hits a Bull's-Eye originally appeared on Fool.com.

Austin Smith, Brendan Byrnes, and The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.