The retail industry has long been dominated by big-box giants. For years, big-box retailers – large-scale stores such as Walmart, Target and Office Depot – were untouchable competitors within the retail industry. In recent years, however, this growth has slowed and major retailers have downsized or closed their doors altogether. In the face of this slowed growth comes what some might call the end of the big-box era.
Following this era comes a shift away from massive store footprints and towards smaller formats - drug, dollar and convenience stores. This shift is evident in the growth witnessed by small format retail categories, now making up a more than $1 trillion market. This growth is no accident. Demographic shifts paired with online shopping behavior and shifting consumer demands are forcing retailers to think small.
In order to meet these demands, leading retailers are making sweeping changes to grow and in some cases, survive. Over the past year, retailers have taken public and deliberate steps to focus their efforts on online shopping and smaller brick and mortar stores.
In light of these shifts within the retail industry, we’ve released our Rise of Small Format Retail report. In this report, we highlight:
- The factors driving the rise of small format retail
- Why millennials are increasingly shopping in small format stores
- How leading brands and retailers are leveraging mobile offers to reach small format shoppers and grow sales