Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Fayette | Henderson | Lakes | McCracken | Warren | Webster
Davis Motor Sales banner ad

Bigger Isn't Necessarily Better

bigstoreBig box retailers downsizing for smaller footprints.

While some retailers look to expand in an effort to boost business, many are now taking a 180-degree turn and opening up smaller centers to capture different markets and turn bigger profits, saving money while possibly helping the environment.

Sprawling retail stores often conjure visions of excess and waste, and warehouse-size stores are shrinking due to changes in the economic climate or decisions to be more economically in-tune.

Expanding by contracting

Many major retailers are downsizing their stores, switching them from stand-alone buildings into more compact spaces that can fit within a strip mall or more easily in urban areas.
Smaller format stores enable retailers to penetrate dense, urban areas where a large building may not be feasible. With a smaller profile, retailers can target the high foot traffic of cities.

Small-box retailers

Smaller stores can benefit retailers and customers alike. Compact stores enable business owners to make changes more quickly and respond promptly to market trends. That means they can more easily offer targeted sales and switch over inventory to meet demand, more so than with a larger store. Cutting down store sizes also enables these retailers to move into previously untapped markets. Rather than shoppers having to drive several miles to the outskirts of urban areas for their favorite chain stores -- which eats up fuel and puts wear and tear on automobiles -- they can now shop closer to home.

Enabling formerly big-box stores to move into urban areas also helps increase business in towns and cities where commerce may have been struggling. These well-known retailers still have name recognition among consumers and may lure consumers to other shops in the general vicinity.
Because development capital has remained constrained through the recession, and potential franchise owners may find loans difficult to obtain thanks to more stringent lending requirements, smaller stores may require a smaller investment. This could expand business possibilities to those who were previously priced out of the scenario.

Environmental boon

Smaller stores mean less drain on natural resources, which in turn spells advantages for the environment. It costs much less to light, heat and cool a 3,000 square foot space than a 30,000 square foot one. Smaller stores also may generate less trash because they don't need the same amount of inventory to stock shelves as larger stores.

More compact stores that spring up in urban areas eliminate excess travel and fuel consumption. They may also cut down on the building materials needed to get started with store construction, particularly because many of these stores are occupying spaces formerly owned by stores that closed up.

Changing shopping landscape

There are several different companies already downsizing. Pizza Hut has begun developing and implementing smaller delivery and carry out models they've dubbed Delco lite stores. Pizza Hut has opened more than 300 of these stories and is mostly building them in favor of the larger, stand-alone stores. The small-format stores are still called Pizza Hut and focus more on take-out services.

In March of 2012, Kohl's announced the opening of seven new smaller format stores across the United States. The stores are two-third the size of the traditional Kohl's department stores, and in store-features include reinvented beauty departments, updated checkout stations, electronic signage in all departments, and upgraded fitting rooms.

Petco is pushing deeper into submarkets with its new "Unleashed by Petco" stores. Many of these new, smaller centers are taking over former Blockbuster Video end-cap locations and stand-alones. These stores specialize in high-end organic products.

Even megaretailer Walmart has launched several smaller format stores to fit into urban spaces and shopping malls.  The struggling Best Buy chain has reduced store sizes as well.

The trend isn't just in North America, either. as smaller offshoots of Tesco and Sainsbury's have opened in the United Kingdom.

Many retailers are operating under the premise that the best things come in small packages. Downsizing of retail space has spurred new sales and many other benefits. 

SurfKY News

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

Started 11/8/2013
Started 11/8/2013
Started 11/8/2013

In Other News...

Free Sports Physical Dates Set for Murray, Calloway, Eastwood Students

MURRAY, Ky. (4/19/14) – Murray-Calloway County Hospital will host its annual free sports physicals to local middle and… Read More

Kentucky State Parks Foundation Awards Grants for Trail Improvements

FRANKFORT, Ky. (4/20/14) — The Kentucky State Parks Foundation has awarded matching grants to two Kentucky State Parks… Read More
Started 11/8/2013

Most Read This Week (Site-Wide)

April 16, 2014 19639

UPDATE- Sheriff's Office Following Leads…

in Top Stories by Taylor Riley, SurfKY News Reporter
April 17, 2014 4437

KSP Nabs St. Charles Man Wanted by U.S.…

in Top Stories by Trooper Stu Recke
April 16, 2014 3291

Sheriff's Deputies Nab Central City…

in Top Stories by Sheriff Curtis McGehee
April 17, 2014 3060

Meet The Hopkins County Magistrate…

in News by Rita Dukes Smith, SurfKY News Director
April 16, 2014 1829

Rand Paul - 'We Need a New President'

in Top Stories by Paul McRee, SurfKY News Reporter

Most Read Stories from Hopkins County

April 17, 2014 4437

KSP Nabs St. Charles Man Wanted by U.S.…

in Top Stories by Trooper Stu Recke
April 18, 2014 1173

Talking Teen Trashed Telephone Pole,…

in Top Stories by MPD
April 18, 2014 942

Earlington Traffic Stop Results in Meth…

in Top Stories by Trooper Stu Recke
April 19, 2014 817

Fifth Third on Main Street Comes Down

in Top Stories by Rita Dukes Smith, SurfKY News Director
April 17, 2014 763

Center Street-Island Ford Connector in…

in Top Stories by Rebecca Hanchett

Most Read Stories from Owensboro

April 16, 2014 1093

New Home Health Care Opens in Owensboro

in News by Dennis Beard, SurfKY News
April 18, 2014 1049

Daviess County School Board Hears…

in News by Dennis Beard, SurfKY News
April 18, 2014 1002

One Arrested, Another Injured in Single…

in News by J.D. Marksberry
April 16, 2014 871

DCPS to Celebrate National Volunteer Week

in News by Lora Wimsatt
April 17, 2014 314

Owensboro Public Works Declares 'War on…

in Top Stories by Abby Shelton

Most Read Stories from Muhlenberg County

April 16, 2014 3291

Sheriff's Deputies Nab Central City…

in Top Stories by Sheriff Curtis McGehee
April 16, 2014 1468

South Carrollton Woman Injured in Head-on…

in Top Stories by Trooper Stu Recke
April 17, 2014 1440

Bremen Man Charged for Possession of…

in Top Stories by Muhlenberg Sheriff Curtis McGehee
April 16, 2014 1296

Three Injured in Kentucky 70 Collision

in Top Stories by Trooper Stu Recke
April 17, 2014 1278

Watson Family Tragedy Inspires Muhlenberg…

in Top Stories by Paul McRee, SurfKY News Reporter

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 06social 21social 22social 04social 03