Why Go Small?
It's not too hard to understand why a store would go bigger. Traditionally, most capitalist organizations have had one goal in mind: to expand and increase profits. With more space and more selection, retailers could attract higher numbers of customers and convince them to buy more. Think about it; how many times have you grabbed a cart at Wal-Mart intending to get “just a few things” and ended up with double what you planned on before you reached the cash register? Figuring out why a retail giant would go smaller takes a little more thought. Here are a few reasons why retail footprints are shrinking:- Online sales are becoming increasingly popular – As more people purchase everything from clothing to electronics online, brick-and-mortar sales have been shrinking. Sales in some big-box stores are no longer high enough to support the expense of a large operation.
- Space just isn't there – It takes a huge parcel of land to support a superstore. In addition to a few acres for the store itself, the property must have even more land available for parking. In some areas, lots of this size are non-existent.
- Big cities didn't have room for superstores – If the big retailers want to make inroads into the urban marketplace, they must typically use vacant space instead of building from scratch. Few urban retail facilities are super-sized.
- Small towns have a reputation for fighting the superstores – Many small towns try to keep the superstores out in order to protect local businesses. A smaller operation might receive less resistance.
- Superstores can be overwhelming – Some customers simply can't take a shopping trip at one of these superstores, especially if they feel sick or they're disabled. Instead, they'll choose a smaller store for a quick, easy trip even if it means the selection is poor or the prices are higher.
