Over the past few years, retailers have witnessed “big box fatigue”. More and more consumers are seeking authenticity, individuality and customization. Big white stores that communicate “over-abundance” are proving themselves to be impersonal and at times difficult to navigate. In addition, there is a lack of land that can support large footprints spread apart far enough to avoid stores sales cannibalism between a new and existing store.
Target Bullseye Bodega. Scaled down version of big box for Manhattan.
This is definitely not a short term trend. There has been a significant grassroots backlash against urban sprawl. Builders are fast creating mixed-use developments that attract young people who want to live in the city. Tesco has done extensive shopper research on urban format stores and found village stores to be a profitable retail plan in some markets. Sobey’s and other grocers are following suit.
Target experimented with the smaller urban format with the Bullseye Bodega promotion in September. In four different locations around Manhattan, which is devoid of the big box retailer, Target opened small format stores full of discount designer fashion. Open for less than a week, the idea created tremendous buzz, especially amongst fans who were excited to have access to the stores in their neighborhood.
Smaller format stores are also popular among Millenials who want to distance themselves from “corporate” retailers and head for on-line shopping, niche retailers and customizable concepts not found on shelves.
Large footprint stores located near interstates and in suburbs may remain the key driver of overall revenue for big box retailers. However, small footprint stores are increasing in popularity and could become an appropriate response to consumer population shifts and changing shopper behavior.
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[...] Walmart is even getting in on the branded fashion surge, increasing promotion of girl’s denim brand l.e.i. and surf-inspired apparel line Ocean Pacific (OP). Discounters like Walmart and Target should consider highlighting these high-style, low cost brands by taking a cue from department store configurations. The store-inside-the-store concept could work well inside a big box to draw attention to designer labels and relieve big box fatigue. [...]
[...] started the pop-up store trend when they launched the Manhattan Bullseye Bodega. Since then several manufacturers, in the face of private label competition, have seen fit to [...]