Who says bigger is always better?
During the last 18 months,
large format grocery stores have experienced significant change.
Instead of clearing acres of land to put in a 100,000 square foot
mega-store, retailers are seeking out small community corner lots in
order to put in smaller, approximately 15,000 square foot stores.
Retailers are following the example set by UK-based Tesco who already
operates a number of small format ‘Fresh & Easy Neighborhood
Markets’ in the U.S.
One
might think that these retailers are simply creating smaller versions
of their original stores, however the focus of these stores has
actually changed. Retailers are taking advantage of a few prominent
trends that have emerged over the last few years – green living with
natural and organic foods, meals on the run, and the promoting health
trend du jour. As the ‘Super Size Me’ mentality continues to
disappear, consumers are looking for healthy and quick alternatives to
fast food that are less expensive than running into your local Whole
Foods and faster than stopping by the gargantuan King Sooper on the
corner.
Albertson’s owner, SuperValu, is currently testing a
compact supermarket called ‘Urban Fresh’ that will focus on ready-to-go
meals, along with a selection of fresh meats, seafood, and produce in
Chicago’s Lincoln Park neighborhood. Just think – you can run into
'Urban Fresh' to grab chicken breast for dinner or chips and salsa for
a friend’s party in less than 10 minutes. Less time shopping...more
time for you.
Even the mother of all retailers, Walmart, has
opened several ‘Marketside’ convenience format stores in the suburbs of
Phoenix, Arizona. Marketside’s tagline, “Deliciously Affordable,’
reflects its dual commitment to value and quality. Unlike Walmart’s
Neighborhood Market and Walmart Super Centers, Marketside does not
identify its parent company in stores or markting materials. Stores
carry a limited assortment of SKUs, including prepared meals, fresh and
packaged foods, packaged non-foods, health and beauty products, and
gift items. Twenty percent of merchandise at Marketside is natural and
organic, and it also touts a selection of fresh and locally grown food.
The perimeter of the store supplies ready-to-eat meals and fresh made
food items. This area is called “The Kitchen,” and former restaurant
chefs offer a 50-item menu of proprietary Marketside Meals that range
from simple side dishes to more gourmet offerings. All meal items are
free of trans fats, artificial colors and artificial flavoring.
(Source: In-Store Marketing Institute.)
Affordable? Yes. Fresh?
Yes. Healthy? Yes. Small and easily navigated? Yes. Now that the
biggest retailer in the world has admitted to everyone that bigger is
not in fact always better – this winning combination just may be the
new ‘it’ format for 2009. Stay tuned.
Photo Credits: In-Store Marketing Insititute
-- Contributed by Vanessa Munson
