Monday, October 22, 2007

More on the Small Format Debate

In one of my recent posts I had written about how the small format is being favored by most retailers in the country adding more insights into the issue is an article, “Big Impact in a Small Format” article forwarded by one of my friends and also available at Strategy and Business. The article comes out with the major reasons why after years of the hype about “big box retailing” small format retailing is making a comeback in Europe and Latin America. The first reason is that the customer experience that one gets in a massive retail establishment is becoming increasingly unattractive. Second is that with the improvement in technology and economics, enable the small stores to procure at almost the same price and quality that the big box retailers are able to do because of their economies of scale. And the last reason given is the intimate relationship which the small retailers are able to provide to their customers. The article also provides more support on why the big retailer would not wipe out the small mom-n-pop stores in the country.

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