Big-box retailers adapt for urban expansion: VIDEO

New York /
Jul.July 26, 2012 10:00 AM

Having already reached their critical mass in the suburbs, national big-box retailers are making a renewed effort to enter urban markets. But according to the New York Times, this time around, retailers are altering their traditional business models to acquiesce to the demands of city-dwellers, whose population numbers are growing faster than those of suburbanites. The stores are reducing their square-footage, downsizing packages to cater to pedestrians and making store navigation easier to appeal to on-the-run shoppers.

Office Depot, for example, recently opened a 5,000-square-foot store in Hoboken that serves as a model for its urban expansion. It’s one-fifth the size of a typical store, carries half of the usual store’s 9,000 items, and has lower shelves and simplified signs to speed the process. Similarly, Target opened its first ever City Targets yesterday in Chicago, Los Angeles and Seattle. These stores measure 80,000 to 100,000 square feet, half the size of a suburban location, and carry items better suited for city shoppers. And Walmart’s urban stores are often just 1/12th the size of a typical suburban one, according to Bloomberg News (see video above).

“You’ll see less 12-packs of paper towels and more four-packs, knowing most people will arrive by foot or public transportation and will have to carry it home,” a Target spokesperson told the Times. For now, these stores are largely experimental, according to Bloomberg.

Since acquiring Duane Reade two years ago, Walgreens has also begun varying items within its New York City stores based on the type of consumer individual stores tend to attract. [NYT]


Related Articles

arrow_forward_ios
Macy’s CEO Jeff Gennette (Getty)
Macy’s converts 1M sf to fulfillment space
Macy’s converts 1M sf to fulfillment space
(Photo Illustration by The Real Deal with Getty)
Black Friday store traffic jumps, but sales don’t
Black Friday store traffic jumps, but sales don’t
(Illustration by The Real Deal with Getty)
Retail real estate continues climb, reaches record low availability
Retail real estate continues climb, reaches record low availability
1 Wythe Avenue in Greenpoint, Brooklyn and Brooklyn Brewery CEO Eric Ottaway (Google Maps, Twitter/@EricOttaway)
Brooklyn Brewery to expand in move to Greenpoint
Brooklyn Brewery to expand in move to Greenpoint
Target's Brian Cornell (Getty, Target)
Target plans 150K sf stores in footprint expansion
Target plans 150K sf stores in footprint expansion
Kimco Realty's Conor Flynn with The Gardens at Great Neck (Kimco Realty Corporation, Google Maps)
Kimco pays $375M for Long Island shopping centers
Kimco pays $375M for Long Island shopping centers
Empire State Realty Trust's Tony Malkin and 112 West 34th Street (Getty, Google Maps)
Pandora leases with ESRT in Herald Square
Pandora leases with ESRT in Herald Square
 Simon Property Group’s David Simon with Crystal Mall (Cube 3 Studio, Getty)
Simon surrenders Connecticut mall to lenders
Simon surrenders Connecticut mall to lenders
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...