Monday, August 6, 2007

The shrinking big box saga continues

Whole Foods is getting into the act of building smaller stores or decreasing the size of existing stores, following the trend of Best Buy and Circuit City discussed here previously.

This is not at all surprising, though the reason here may be different. You don't buy groceries as much of the Web as you do electronics, but efficient supply chains and smaller demographic markets are good reasons to move this trend in to the grocery realm.

The only bad things I see here are: (a) I like large grocery stores myself because of the perception (if not the reality) that you can find more varied product, and (b) developers have to find more tenants to fill space, but that might be at higher rents than you can charge a big box anyway.