Archive for September, 2011

Over the past two years, a new dynamic trend has emerged with America retailers. A few retailers are actually expanding their store layouts while most retailers are actively pursuing downsizing their store footprints to reduce operating costs. Office Depot, Target, Walmart, and Best Buy who have held steadfast to their larger footprints are exploring new strategies of smaller-sized retail building components to fit the needs of an area while hopefully, contributing to the profitability of the company.

Office Depot has shrunk their building square footage requirements from 25,000 square feet to 14,000 square feet. Hobby Lobby has gone from 85,000 square feet to 55,000 square feet. While Walmart has developed two new prototypes, a 45,000 square foot Walmart Neighborhood Market Place and a 15,000 square foot Walmart Express concept to open up more opportunities in urban areas.

This trend can be seen in the Lincoln market as Best Buy is downsizing its current floor space by making 12,000-18,000 square feet available for lease in their store at 48th & R Streets. Opening kiosks at airports is another strategy Best Buy is testing to reach customers and reduce costs.

Retailers will continue to explore alternatives that will impact store sales and operations and ultimately profits as economic conditions remain challenging and consumers want more value.