Up until 2020, food retailers had lived by the motto ‘go big or go home’ in terms of grocery store construction. For years, it seemed as if grocery store chains were in a rat race for who could build the bigger store. But as real estate prices skyrocket and labor becomes harder to find, the blueprints for future grocery stores may soon start to downsize.
Several grocery store chains are already in the works of downsizing some of their future stores, including:
- Target
- Meijer
- Publix
- Wegmans Food Markets
- Sprouts Farmers Market
- Schnucks
- Fareway
- Lowes Foods
But why go smaller? According to Progressive Grocer, grocers are re-evaluating their physical-store strategies as they look to maximize profits, keep shoppers loyal and drive sales amid escalating expense pressures. While large grocery store chains like Walmart and Costco are known for their tremendous size, other chains are looking at building smaller stores to help keep costs under control.
Currently, the average size of a grocery store in the U.S. is currently about 38,000 sq. ft., according to Cuhaci Peterson, a Maitland, Fla.-based commercial architectural firm. However, that number has been steadily declining for years, with small-format grocery stores now ranging in size between 12,000 sq. ft. and 25,000 sq. ft., and even smaller in urban markets.
While large grocery stores won’t being going away anytime soon, don’t be surprised if you start to see smaller stores open in your neighborhood. They just might become the new ‘normal’ size.
