Why big box retailers are experimenting with small-format stores [Yahoo! Finance Canada]
Target Corporation (TGT)
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Source: Yahoo! Finance Canada
Small-format stores are scaled-down versions of big box retail stores that offer consumers an efficient, convenient, and localized shopping experience. According to R.J. Hottovy, head of analytical research at Placer.ai, there are several reasons why retailers are pursuing smaller-format store strategies. “First, smaller-format stores tend to be less expensive to operate than larger-format stores in terms of rent and labor needed to staff the stores,” Hottovy told Yahoo Finance. “Smaller-format stores [help] retailers to streamline operations and focus its merchandise and staff to its best customers. Also, as we've seen many consumers move away from urban areas to more suburban and rural markets, smaller-format stores allow retailers to more efficiently reach these potential customers.” A customer shops for holiday gifts in a Target store on Dec. 21, 2023, in Austin, Texas. (Brandon Bell/Getty Images) (Brandon Bell via Getty Images) According to Placer.ai , other reasons for th
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