Stores Going Up Faster, Being Built Smaller
By George Anderson
In a preview of its Facts About Store Development 2004 research, the Food Marketing Institute (FMI) reports that grocers are building smaller stores and putting them up faster than ever before, according to Supermarket News.
Speaking at the group’s Retail Store Development Conference, Michael Sansolo, senior vice president of FMI, said the median size of new stores built in 2003 was 34,000 square feet compared to 47,000 square feet the year before.
Smaller stores cost less to build and also open for business sooner, according to FMI. Construction costs for new stores was $108.30 per square foot in 2003 compared to $124 in 2002.
“If it’s a smaller, targeted store, it could be there in three months. Even big stores are happening in 34 to 35 weeks,” said Mr. Sansolo.
Moderator’s Comments: Why do you think new stores are being built smaller? What advantages/disadvantages are there
to smaller stores? –
George Anderson – Moderator