Small Box Stores are Big Again: Brand Implications
Parking lot shopping-cart wranglers might want to reconsider their job security as major retailers continue to focus on opening more small-box format stores. Walmart and Target are just two companies racing to invest in small-box urban stores aimed not at stock-up shoppers but rather quick-trip ones who are more likely to carry a basket — if they use one at all.
It’s a trend food and beverage manufacturers are tracking closely, since smaller footprints mean even fiercer competition for shelf and cooler space. The product lines that do win slots will have fewer of those prestigious spots for eye-level, aisle-facing placements, forcing brands to rank the offerings in their own portfolios and work harder than ever to stand out on shelf and maintain healthy turn rates.