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Four Retail Brands That Have Scaled Up by Scaling Down

Brick-and-mortar stores serve a wide variety of functions, Placer.ai points out in a new report. They can range from operating as a sales channel to supporting product and brand discovery, facilitating fulfillment and reverse logistics, and building customer engagement and loyalty. Bigger isn’t always better when it comes to fulfilling these roles, which is why many retailers are now incorporating small-format stores into their fleets. 

“There are plenty of reasons why companies have been leaning into small-format stores,” Placer.ai says in its Going Big by Going Small The Small-Format Advantage report. “Retailers can tailor these small-format stores to target a specific demographic, create a personalized shopping experience, or experiment with a new brand direction.  

“Small-format stores can also serve as fulfillment centers for click-and-pay shopping and as a location for returns, all while fostering brand awareness and customer engagement. And thanks to their smaller size, these stores can help companies expand their reach in urban centers and other highly priced real estate markets while lowering overhead costs.”   

This report analyzes four leading retailers that are shrinking their store size to see how smaller stores can affect visits, dwell time, and loyalty—and finding success by doing so. 

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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