Hero Image


September 28, 2018

In order to survive this brave new world of retail, retailers need to think beyond the e-commerce revolution. The truth is that brick-and-mortar operators – especially those with a different operating style and cost structure – are shaping the food retail industry and present a significant challenge to traditional grocers.

In the past year, there has been considerable buzz about extreme value merchants that offer attractive, low prices, but also run small stores that can be opened more easily and show a profit at a much lower level of sales. The challenge presented by these smaller stores is referenced in Surviving the Brave New World of Food Retailing, the newest study from the Coca‑Cola Retailing Research Council of North America.

The study notes that small stores and even some traditional convenience stores are expected to post annual sales growth ranging from 9 to 18 percent between 2013 and 2018. Since then, the potential for these types of stores has only grown.

Given those stats, combined with an aging population of shoppers who may be less willing to traverse large superstores, it’s no surprise that many experts expect average store size to shrink from 25,500 square feet in 2013 to 23,900 square feet by the end of 2018, with potential for more shrinkage.

The entire report, which includes key questions for retailers to consider as they plan for the future, can be downloaded for free here: