Smashing Your Fears of Sizing Down
July 18, 2017
Right now, small store retailers are still relatively incipient. At Wal-Mart, supercenters outnumber their smaller neighborhood markets 5 to 1. And Target’s small store representation is just 2 percent of its overall base. Numbers like these may initially deter retailers from sizing down, but we have no doubt the small store will play a crucial role in increasing your future revenue for years to come.
Moving to smaller spaces provide a more exclusive experience for your customers. With less duplicative products, and a more intimate environment, your business can enhance customer shopping experiences, all while lowering overhead costs and increasing sales.
Before considering a small footprint, there are a number of factors retailers must assess including the market potential in the given area. What is the population threshold? Would this location present further opportunities? Who are the co-tenancies? You may want to seek out any competition and determine if there is oversaturation in the market niche or if the concept is strong enough to carry another retailer in that space. Is your customer already there? After thorough evaluation, you will be able to appropriately determine the space that would best suit your needs.
One of the greatest concerns with sizing down is dealing with limited space. Does it mean you will have to offer limited products? Not necessarily. Innovative retailers are placing increased emphasis on e-commerce. A digital store won’t have to cut back on stock. Rather, you’ll utilize an online platform for inventory and order-taking.
Having several small footprint outlets in many areas, enable retailers to build an extensive system suited for in-store pickup, easier returns, and local delivery. Utilizing omni-channel click-and-collect systems and in-store returns for online purchases will be a major competitive advantage.
Small footprint businesses are rapidly making a name for themselves among the clunky big box stores. For consumers, it translates to faster and more convenient shopping experiences. For you, it equates to spending less money and developing authentic connections with your audience in fast-growing and urban environments.
To learn more about small footprint stores, fill out our contact form below.