I love reading about how the world is getting more localized. The economy has forced people to think and shop locally. This is having a big impact on the major retail brands. Stores are being forced into thinking about smaller and smaller geographic areas.
What does this mean. Well for the folks in Bentonville, AR I think it means having to think about smaller boxes. Does the “Neighborhood Market” take a higher profile? I think it has to, but not without significant change. There needs to be more general merchandise and a pharmacy before this concept catches. When they perfect the format then they can spread like wildfire across the US. But with that spread means far more localization of buying. MORE not LESS. Far less centralization of power in B-ville will be required. For the Wal-Mart big boxes (and lets not forget that is who they are), it will require even sharper pricing and greater customer service. Pricing they have service they stink at. Sam Walton would be appalled at the state of service at your local Wal-Mart, and rightfully so. The best example is the Wal-Mart greeter. It used to be a retiree that greeted you, said good morning and sent you on your adventure. They were the brunt of many jokes, but it was a folksy and familiar experience at every Wal-Mart. Now many times it’s an 18-year-old with tattoos and facial piercings that won’t even look you in the eye let alone say hello. This must change for them to succeed.
For the other more local retailers in big, yet not huge boxes (CVS, Walgreen’s, Dollar General, and the Grocers) it will require customer service and selection in both food, pharmacy and general merchandise to woo customers.
The retail landscape has shifted and the ones that can move the fastest and key in on local demand will be the winners.
