Bill Emerson

Not Everyone Going Smaller Box Route

January 31, 2012

FROM RETAILWIRE:
It's not news that many big box operators are opening smaller formats. While not getting as much attention, some retailers are going the opposite route and opening bigger box stores. Do you see other chains opening bigger stores such as Menards or will it be rare in a market where formats are shrinking?      [more...]

This will be the exception. On a very specific situation (fewer stores, high density, low competition), this might make sense. This is not, however, a viable strategy for major expansion. There simply aren't enough of these kinds of situations around. Secondly, this introduces the complexity of managing inventories in different size boxes with different categories and varying volumes. As someone who has done that, it is not a winning formula.