Why bigger is better for wholesale retailers?

Retail stores such as Whole Foods Market, CST Brands, and Burlington stores etc. are looking forward to follow the emerging trend and transforming into the large store format same as what Wal-Mart is. There are more Wal-Mart stores building every now and then in almost every neighborhood. Such retails stores offers premium pricing with amazing shopping experience, customer convenience, and what not? The transformation also gives the merchandizing edge to these retailers. These are known as the world’s best and renowned American multinational organizations which manages many discounted stores in America.
Shopping experience along with premium pricing plan
United States largest natural food and organic food retailer is Whole Foods Market with having about 300 stores in the country. Despite of being the largest retailer in food industry, Whole Foods Market has to expand itself and has to build large stores. The store offers lower prices for excellent quality food products. It is believed that the company has highest gross margins at 35.7% when compared to its competitors. Apart from the premium pricing plan, customers who visit Whole Foods Market certainly have a good shopping experience as these stores have dedicated customer booths to entertain customers’ queries and demands.
Convenience for customers
CST Brands has provided a lot of convenience for their customers. As these companies are huge retail stores, people visit and usually buy bulk quantities, hence it makes it difficult for them to carry such weight till their car or homes. Therefore, CST Brands has made it easy for its customers by developing new formatted stores named New to Industry which are either 4,650 or 5,650 square feet large, making them much bigger than CST Brands’ average store size of 2,350 square feet. Hence, they provide sufficient parking space to its many customers
Having edge on goods for sale
Usually, off price retailers have switched their focus on narrowing the selection on brands and the branded merchandize in order to resale it at discounted prices. It will lead to develop and maintain “a more modest cost profile with smaller store sizes.” This strategy has worked for many companies, especially the Burlington stores. This helped the stores to have an extensive and wide range of products variety.
Hence in a nutshell, as the saying goes like “the bigger the better”. It fits perfectly for the retailers as it have proved to be beneficial for them in a short and long run.

Also find our reviews on Best Buy Inc and 3M Inc on this blog.


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