American culture has historically had the luxury of space. We sprawled out our stores, malls, and neighborhoods, pushing everything farther from each other because we can.
Lately, however, our culture has been shifting away from this sprawling effect. We are moving back towards creating urban centers and downtown hubs. Instead of providing all merchandise and needs within one store that’s more remote, we are building downtown areas with all the amenities one needs within walking distances. While the concept of having all merchandise and amenities under one roof is a positive one, big box stores will need to change their look if they want to continue to be profitable. Perhaps they can become more successful in a downtown area that already has a large concentration of people.
Some of the stores such as Target, Home Depot, and Staples are already entering this market, while others are lagging behind. However, many of the stores who are entering these markets are only changing facades, leaving their interiors as large open spaces. They are using organizations from their rural stores which will not to work in urban sites. Urban sites have more boundaries and smaller spaces, so retailers will need to plan out accordingly. More thought will need to be given to the interior spaces, organizations, and pathways to maximize use and efficiency. Urban sites also provide close proximity and accessibility to people and other retailers. The success in new urban environments may prove more successful than the rural ones.
Here are some examples of stores that are entering this market:
On top of this momentum shift back to urban centers, the world is moving towards more environmentally friendly development. These stores are some of the biggest energy consumers in the world, and they will need to adapt to the new environment to succeed.
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