Discount store Target, now owned by Wesfarmers is planning to put up 50 small-sized stores in next four years to drive the company's growth.

The Australian reported that the new stores called Urban by Target, will feature a smaller floor space, around one-fourth the size of the usual 5,000 square meter Target outlet.

Urban by Target will carry lesser product line but aims to address product demand in each location. The new store opened in August in Melbourne's Chapel Street.

"We didn't put the whole range in -- we did a lot of analysis with a number of customers that lived within 15 minutes on what they saw as the most relevant range for Chapel Street," Target managing director Launa Inman was quoted by The Australian as saying.

"They just wanted ladies wear, accessories, underwear, shoes and children's wear, so we don't have any cosmetics and no menswear except for men's underwear, because that's what customers said they bought," Inman added.

About five Urban by Target stores will be opened this year, on a trial basis.

"If they work, there's an opportunity to open anything up to between 30 to 50 stores over four to five years in inner-urban areas," Inman said to The Australian.

"It's more of a convenience model, if you just need some kidswear, for example. But if you want to do a bigger shop, like for bed linen, you'll go to a bigger store which might be further away," she adds.

Target is also planning to accelerate the opening of its stores in Australia.

"We haven't opened many since the global financial crisis -- about three over the past six months. We wanted to open about 10, but we'll open more in the next 18 months, because a lot of them were stalled, but they're coming back on track as the developers have managed to get funding," Inman said.

Inman added the Target will be updating stocks in its 292 stores around the country aimed at increasing the customer purchase.

She said the Target will also come out with new store layout that will be more attractive to customers.

"We had a very good run for six or seven years, but the last year has been tough. There is some elements of the economy and the weather to blame, but you've also got to keep reinventing yourself," Inman said.

Target Australia is a mid-market department store renowned for delivering to its customers great quality and great value apparel and homeware.