Ralph Jacobson

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...]

I am still amazed at how many retailers have the need to build new stores from the ground up, regardless of size, while there is so much vacancy in the US.

I do think there is a market for certain retail brands to expand into larger formats, based upon successes in current smaller stores. However, the number of retailers for which this is a viable option today is extremely limited.

Prior to opening a larger format store, I would do a deep site selection process and take my "gut feelings" out of the equation. See if the population density will even support the square footage of the unit that I am planning. Also, introduce complementary product categories to organically grow the business.