Retailing's extended infatuation with "Bigger Is Better" is what we refer to as Retailing on Steroids. You know, the category killer "big box" stores, the ever-larger "super stores". It's been going on for decades.
According to the International Council of Shopping Centers, retail square footage in the United States has now grown to 23.1 square feet per capita, by far the highest in the world. Yikes! We seem to be over-stored (or under-demolished!)
According to the International Council of Shopping Centers, retail square footage in the United States has now grown to 23.1 square feet per capita, by far the highest in the world. Yikes! We seem to be over-stored (or under-demolished!)
Now, Downsizing Is In
- Best Buy is touting its "Stores within the Store", as they deal with their excess space.
- Radio Shack and Staples are closing hundreds of stores.
- Sears is trying to "reposition its real estate assets".
- Target is opening City Target stores, with smaller footprints, and products scaled to smaller urban condos and apartments.
- And Wal-Mart is doing the same thing.
Better Is Better! Bigger may not be.
And what these initiatives have in common - besides the need to shed retail square footage - is the attempt to replicate the "specialty store" shopping experience. Yes, they're now going after the fundamental competitive advantage of independent retailers: Better Is Better! Bigger may not be. The advantages that smaller stores offer:- improved "theater of retailing"
- much closer connections between the sales staff and customers
- financially, higher sales per square foot.
