Why Smaller Stores Mean Bigger Profits
With the giant that is e-commerce, retail trends are continually shifting and evolving. Things that once seemed to be common sense, are now becoming antiquated formats. An example? Major retailers like Target, Wal-Mart, and Lowes have begun to invest in smaller store space. It no longer is a matter of giving as many products as much face time as possible. Instead, retail success means creating a presence that is convenient and approachable for the modern consumer, which means the consumer with mobile device, and constant-web accessibility in hand. Here are a few reasons that point to the value of a small, well-constructed store, with a strong online presence.
1. The economy has continued to impact shopping trends.
Historically, Wal-Mart was one of the first to push towards smaller neighborhood stores. This was a direct response to a continued decline in the sales of their super stores. As the Wall Street Journal points out, they will continue this trend by forging into the world of gasoline sales, stand-alone liquor stores, as well as fortifying their online game. Before, consumers were willing to make large, expensive trips to the store. Now, shoppers often have to make more frequent, smaller trips to accommodate smaller budgets.
2. Super stores are bulky.
Especially in urban areas, large stores are just too cumbersome. This means that there is a large demographic that is being missed by the retailer that relies solely on the sales of super center-like locations. In Fortune’s survey of Target’s push for shrinking storefronts they note, “If the customers can’t go to you, then go to the customers.”
3. However, consumers are less inhibited by location.
For retailers, large and small, the future is one where omni-channel shopping prevails. Before, a retailers relied on their ability to showcase each and every product. If the customer didn’t see it in-store, it didn’t sell. Now, that isn’t the reality; smaller stores that have carefully curated selections that are backed by a vast array of online options, make the most sense.
As Forbes puts it, “They (customers) do not care how the retailer makes the item available, only that it is available, when and how they want it. The future of retail will be faster, more customer-specific, more cost-effective and even greener.”
In many ways, this is good news for the small retailer, who are typically already set up with the type of specific, specialized options that consumers are currently seeking. To fully utilize the advantage though, it’s important to make sure that each time your customer comes into contact with your product, it’s remarkable. At S. Walter Packaging we specialize in making in-store and e-commerce packaging remarkable. For more information on how you can make your brand’s impact go further, contact us today.