Stupid Size Me

It appears that the “Supersize Me” trend is fading.  Sellers of the 48 oz. killer cola and 1 lb. burger belly buster are coming under intense pressure from health professionals and anyone with common sense to either withdraw or post prominently their caloric and nutritional components.  The extra long cigarette is going the way of the 8 track tape, a recognition that too much of a bad thing is … too much.  And now we see that some of the supersized big box stores are struggling a bit, and actively looking for smaller format stores or alternative approaches to increase revenue/customer and reduce costs.  Ironic, really:  what made these brands so successful was the ability to drive down costs, and provide one stop shopping, by developing huge temples to retail shopping.  Now they need to increase revenue by going smaller.

What’s interesting about the ‘sub-size me’ retail movement is how it seems to have brought full circle the battle of local merchants vs. big retailers attempts to build superstores in the first place.   Another irony:  instead of superstores annihilating small local merchants, it now appears the big box stores are trying to replicate them … albeit with significantly stronger marketing, operations, and purchasing power. 

But here’s the trick we suspect the ‘stores formerly known as big box stores’ are likely to be missing:  the shopping experience.  In the face of ever increasing options for cheap on-line shopping, the task of bricks and mortar retailers is to ENHANCE the shopping experience.  Provide personal advice and guidance.  Give access to fun or interesting events.  Encourage sense of discovery and exploration.  Immediate gratification, not just without hassle but with an enhanced outcome.  Shoppers need to exit the store having spent the time being enticed, entertained, informed, or engaged – enough so that they’ll come back, and look forward to the experience.

So the real question is how will big box retailers provide this enhanced shopping experience?  Most wouldn’t know decent in-store customer service if it hit them.  In fact, they’re not geared for it – the mantra of “pile it high sell it cheap” demands keeping staff costs under control.  Hire teenagers, minimum wagers, lots of part timers, retirees.  Think the small format Target clerk can compete against a local merchant in terms of knowledge, personality, flexibility, attitude?  I’d put money on the local merchant winning that battle.

What we’re seeing in this retail revolution towards different formats is a slight capitulation by the big box stores, an acceptance that maybe having a degree of specialism and convenience and service actually matter.  What we suspect is their quest for new formats is a knee jerk reaction to Wall Street pressure:  same old stuff, just less of it in a smaller space.  It’s unlikely to work – just ask the big box retailer Tesco, and their much ballyhooed attempt to break into the US market with small format stores. 

And the big winners?  Independent merchants who bring passion and knowledge to their efforts.  Those who remember that their customers are unique and have many other options.  Above all, those who ‘service and sell’ … rather than stock and smirk.