The Era of Big Box Retail Dominance Is Coming to an End

When Best Buy Co. (BBY) said yesterday it was closing 50 big stores and opening 100 smaller ones, the world’s largest electronics retailer was adjusting to reality: The era of big-box retail dominance is coming to an end.

The new mantra is small box. While Best Buy, Wal-Mart Stores Inc. (WMT) and Target Corp. (TGT) are still opening large stores, all are putting increasing emphasis on smaller ones. Best Buy plans to double the number of its smaller Best Buy Mobile stores by 2016. Wal-Mart is building as many as 100 small-format stores this year, while Target is opening five CityTarget locations.

After 50 years of putting mom and pops out of business, big-box retail is having a mid-life crisis. A slow economy has hurt same-store sales, narrowing margins at big stores. Meanwhile, consumers, armed with price-comparison technology, are visiting more stores seeking deals or exclusive merchandise rather than making one-stop, fill-the-cart excursions.

Full Article:

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

Advanced UPB Lighting Packages from Simply Automated

Advanced UPB Lighting Packages from Simply Automated

Custom scenes (connecting up to 250 switches) in your living, family or great room, kitchen, study, master bedroom/bathroom, and office. Turn off all lights in your home at the touch of a button. Automatically (Timer Scheduler) turn on/off outdoor security lights, heating and AC, or provide night light convenience anywhere in your home. From creating a virtual 3 way switch anywhere in your home, to turning a group of lights when your garage door is opened, door bell or phone rings.