The Intersection: Retail Stores are Getting Smaller, and That’s a Good Thing

 

Retail stores across the country are undergoing enormous changes. As e-commerce creates competition, brick-and-mortar stores are focusing on developing a highly curated shopping experience for customers. Part of this curation means downsizing stores from large one-stop-shop warehouses to smaller, more intimate storefronts.

On this episode of The Intersection by Bluewater, we’re joined by Eric Thompson, senior sales executive for Bluewater; Thompson discussed the positive effects a smaller retail store has on the shopping experience and a business’ bottom line.

“The right-sizing of a retail store is a very healthy thing right now,” Thompson said.

The USA is the biggest culprit of oversizing stores, and up until only a few years ago, the common motto among big-box retailers was “stack it high and sell it cheap.” But the days of oversized stores are coming to an end. “Retail is overstored by 1.2 billion square feet,” Thompson said.

When customers can shop from the ease of their computer, browsing an enormous store becomes secondary. This is why slimmed-down stores, designed for convenience and relevancy to their area, are some of the most profitable in the retail market. In addition to downsizing, retail stores are integrating technology into the shopping experience to curate a customized experience for every shopper further.

Thompson elaborated on how big companies like Nordstrom’s, Kohl’s, and ALDI  are integrating new technologies into their stores, leading the charge in transforming the retail marketplace. By receiving sales and analytics on customer products in real-time, retail stores are collecting big data that helps craft a curated shopping experience that cannot be replicated in online shopping.

“It’s never been a better time to be in retail right now,” Thompson said.

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