Target Corp. and Wal-Mart Stores Inc. are testing out smaller versions of their big-box stores in rural and urban areas where those large retailers have had trouble making inroads, MSNBC.com reported.

The companies, which are moving forward with plans to generate business in very rural and densely populated urban areas, hope the more petite stores will attract consumers who might be unwilling to spend the time and fuel to travel to a bigger store farther away.

The first approximately 15,000-square-foot Walmart Express store opened last week, and the retail giant this year plans to roll out 15 of the outlets in Arkansas, North Carolina and Illinois.

Target plans to target urban customers with the launch of four CityTargets in 2012 and 2013 in Chicago, Seattle, Los Angeles and San Francisco.

Analysts predict that the smaller stores could help Wal-Mart and Target compete with discount retailers such as Dollar General Corp. and Dollar Tree Inc., whose small assortments of low-priced merchandise have been popular during the economic downturn.

The smaller stores could also be attractive to Baby Boomers, some of whom don’t like navigating massive parking lots and bulky retail centers.

“People get overwhelmed in the big stores,” said Patty Edwards, chief investment officer with Trutina Financial. “A smaller store where you dash in, get what you want … without having to walk through 75 football fields of stuff is good for the aging demographic.”