One of the longest-running experiments for big-box retailers is downsizing.

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Retailers are increasingly focusing on smaller format stores to cater to changing consumer preferences and maximize revenue per square foot. Examples include Ikea opening smaller stores in Maryland, Georgia, and North Carolina, offering a more personalized experience. Target is also opening both larger and smaller stores to adapt to consumer trends. Roger McMahon, a retail expert, explains that the shift to smaller stores is driven by the need to generate more revenue from each square foot of space. The layout of large stores often includes non-revenue-generating areas, making smaller stores more efficient. Customers have mixed opinions on smaller stores, with some appreciating the convenience and intimacy while others prefer the larger selection of traditional stores. Macy’s is also experimenting with smaller format stores to reach customers in different markets, with Bloomie’s attracting urban shoppers. Overall, retailers are striving to be everything to everyone and spoil consumers with a variety of format options, even extending their reach into digital platforms such as live stream shopping. Smaller stores can be cost-effective for retailers while still offering a personalized shopping experience, demonstrating loyalty to customer needs.

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