Finally, good news on retailing front

It’s not what you might think – quarterly sales figures. The good news is that Big Box stores may be getting smaller. IFO has never liked the Big Box stores. Even Costgo gives her a headache, though she loves the bargains.

But in this WSJ article, As Big Boxes Shrink, They Also Rethink we learn that, “Major big-box retailers have been shifting to smaller stores…”

A few details from the piece:

As consumers trim their spending and shift their shopping to cyberspace, American retailers are acting on a realization that many of their stores are too big.

“You have a massive rush throughout retail to get small,” says Leon Nicholas of consulting firm Kantar Retail. “Honestly, I am not sure what’s going to happen with a lot of these giant boxes. I like to joke that perhaps they can be turned into retirement homes for Baby Boomers.”

After years of business writing, including pieces on retailing, IFO has wondered when the stores would get a clue. What’s interesting is that the wholesale distributors go through cycles of big regional to small local back to big regional centers on a fairly regular basis. They are always looking for the optimal mix.

This, BTW, is a good reason to lease. Leave it to landlords to figure out how to fill their buildings, while retailers and distributors can figure out how to move product.

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About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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