We’ve known for a long time the customer perception of big box versus neighborhood business is pronounced. Big Box = Evil. Small Business = Neighbors. Doesn’t mean they always shop that way, but the mental picture is certainly in tact.Until now.
Wal-Mart has been talking about creating a smaller, local-feel environment in their big boxes for a couple of years now. Well, that talk has translated into reality with this week’s opening of the first four Marketside locations-—Wal-Mart’s new “smaller format” grocery stores, placed nowhere near a Wal-Mart. Marketsides don’t wear the parent company’s moniker...have a much more whimsical logo than the original giant...but still don the teeth of a large, big box operation (aren’t you proud of me for not using the word “fangs?”).
They aren’t alone. Loew’s began kicking a similar concept around during their annual meeting last month. If consumers nibble at this, you can bet there will be more, and they won’t be planted on major highway intersections; they’ll land smack dab in your very neighborhood.
For now, this appears to be aimed predominantly at hardware and grocery-—retail categories not previously impacted the way the gift and stationery industries have been (think: Paper Source, Swoozies, Blue Tulip, etc.).
Will it stick? Or is this something that will burn itself out? Time will tell, although a failing economy only makes it harder for the locally owned stores to hold their own if one of these Mini-Me boxes pops up nearby.
Good luck, fellow retailers...and welcome to the party.
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