Top 5 reasons why small store formats are making a BIG impact
Wednesday, August 27th, 2008 
The revolution in small-format stores that we’ve been hearing about so much seems to have officially become an established trend with small format food retailing happening all around the world. It’s not like small stores haven’t always existed, there have always been small food stores throughout the world but what seems different in today’s market is the scale in which various retailers are developing the stores, the number of stores they are building, and the fact that those retailers getting into the small format food retailing business are among the largest chains in the world.Major small-format retail players include: Tesco with their Fresh & Easy Neighborhood Market, Aldi, Save-A-Lot, and specialty grocer Trader Joe’s. Safeway’s The Market and Wal-Mart with its new Marketside format are the latest to jump into the fray. Other retailers with a stake in the small store format game include Giant Eagle, Whole
Foods, Ukrop’s, Hy-Vee, Lidl, Sobeys, A&P, Netto’s and Fresh Market.What is driving this move to small store formats?
Some wonder why this trend didn’t happen sooner, given the numerous reasons why small makes sense. But as we see it, here are the top 5 reasons why small formats are making a BIG impact:
1.) Quicker, easier shopping experiences
2.) Low break-even points
3.) More frequent trips to the grocery store for fresh foods
4.) Political difficulty securing sites for large formats/ Lack of large site availability in urban areas
5.) A desire for less fuel per consumer trip due to high gas prices
Perhaps the biggest catalyst driving this trend is competition. There are thousands of thriving small-format multi-store and single-store independents operating in communities around the world. Now larger retailers are experiencing success with small store formats too. Look for this trend to continue.