Consumers Interested in Smaller Format Stores

April 18, 2008

Source: The Merchandise Group


asdamd/photos/stylus/23340-GirlBagel.jpg
The retail market could be headed for a dramatic downsize, and not because of the economy. A February 2008 survey by Columbus, Ohio-based TNS Retail Forward reveals that an increased number of consumers are interested in shopping at smaller food stores.

Consumers were asked if they would shop at a small food store if it featured the following:

 -Fresh, prepared food and meals.
-General assortment of grocery staples at competitive prices.
-Gourmet, ethnic and organic specialty items.
-Neighborhood location.
-Plenty of parking, smaller than typical supermarkets.
-Quick checkout.

The results were dramatic, with 64 percent of consumers reporting they definitely or probably would shop at a smaller store; while 30 percent might or might not and 6 percent definitely would not shop at a smaller store.

"The combination of small size and a fresh, prepared foods emphasis is a compelling offer for the time-pressed shopper," said Jennifer Halterman, senior consultant with TNS Retail Forward in a recent statement. "The small-store trend, which more players are beginning to explore, is part of an ongoing evolution in the retail food sector and we expect more players to throw their hats into the ring."

According to Halterman, more large-chain grocery stores are seeking to open smaller format stores to meet this demand. U.K.-based Tesco PLC started its version of smaller markets with Fresh & Easy, while Bentonville, Ark.-based Wal-Mart Stores Inc. and Pleasanton, Calif.-based Safeway Inc. are reportedly planning to open small-scale grocery concepts as well.

Consumers are obviously interested in shopping at smaller-format stores that offer fresh, convenient and competitively priced goods. Merchants can ensure their business meets these needs, by following the tips below:

-Location is everything. For a smaller store, a neighborhood location can create a connection within the community.
-Be convenience-minded. Offer gift packages, meals-to-go, jewelry sets and the like. Make shopping easy for your customer. Extend your hours or adjust to meet the needs of your neighborhood customer base.
 -Provide exceptional service. Greet your customers; be thoughtful, kind and available to help.
-Reward local shoppers. Present customers with opportunities to earn rewards points, freebies and discounts. This will build brand loyalty.
-Carry exclusive products that are not offered at larger retailers, such as ethnic items or locally-made goods.

The bottom line is to make the most of your smaller store status, and customers will keep coming back for more.

Consumers Interested in Smaller Format Stores

April 18, 2008


Source: The Merchandise Group

asdamd/photos/stylus/23340-GirlBagel.jpg

The retail market could be headed for a dramatic downsize, and not because of the economy. A February 2008 survey by Columbus, Ohio-based TNS Retail Forward reveals that an increased number of consumers are interested in shopping at smaller food stores.

Consumers were asked if they would shop at a small food store if it featured the following:

 -Fresh, prepared food and meals.
-General assortment of grocery staples at competitive prices.
-Gourmet, ethnic and organic specialty items.
-Neighborhood location.
-Plenty of parking, smaller than typical supermarkets.
-Quick checkout.

The results were dramatic, with 64 percent of consumers reporting they definitely or probably would shop at a smaller store; while 30 percent might or might not and 6 percent definitely would not shop at a smaller store.

"The combination of small size and a fresh, prepared foods emphasis is a compelling offer for the time-pressed shopper," said Jennifer Halterman, senior consultant with TNS Retail Forward in a recent statement. "The small-store trend, which more players are beginning to explore, is part of an ongoing evolution in the retail food sector and we expect more players to throw their hats into the ring."

According to Halterman, more large-chain grocery stores are seeking to open smaller format stores to meet this demand. U.K.-based Tesco PLC started its version of smaller markets with Fresh & Easy, while Bentonville, Ark.-based Wal-Mart Stores Inc. and Pleasanton, Calif.-based Safeway Inc. are reportedly planning to open small-scale grocery concepts as well.

Consumers are obviously interested in shopping at smaller-format stores that offer fresh, convenient and competitively priced goods. Merchants can ensure their business meets these needs, by following the tips below:

-Location is everything. For a smaller store, a neighborhood location can create a connection within the community.
-Be convenience-minded. Offer gift packages, meals-to-go, jewelry sets and the like. Make shopping easy for your customer. Extend your hours or adjust to meet the needs of your neighborhood customer base.
 -Provide exceptional service. Greet your customers; be thoughtful, kind and available to help.
-Reward local shoppers. Present customers with opportunities to earn rewards points, freebies and discounts. This will build brand loyalty.
-Carry exclusive products that are not offered at larger retailers, such as ethnic items or locally-made goods.

The bottom line is to make the most of your smaller store status, and customers will keep coming back for more.