Big isn’t always better!
Best Buy did a monstrous belly flop in the pool of big retailers last Thursday, reporting a $2.6 billion quarter loss and sending tidal waves to similar retailers. Best Buy, along with many of its retailing rivals, is shifting their focus to opening smaller locations. We are facing down the end of the big box story, according to Bloomberg.
Target, Walmart, all are opening smaller stores, a recognition of changing demographics, a shift online and competition from one another as markets become saturated.
Lady Walmart, who is perhaps queen of the belly flop in local communities, has plans to build about 100 petite stores, Neighborhood Market, as well as 150 supercenters, about thirty more than they added in 2011, despite eight consecutive quarters of profit loss. The Neighborhood Markets have been seen as a strategy to break into dense markets like New York, going up against the Duane Reades of the world.
Still, the news of shrinking interest and sales can’t help but cause wonderment at the fact that Walmart is somehow America’s favorite retailer.