No showroom trend yet – but bigger stores

      Comments Off on No showroom trend yet – but bigger stores

Although we are shopping more online today than ever before, retailers are investing in larger concept.
The expected trend towards chains converting stores to showrooms has not yet begun. In eight of nine industries the proportion of stores with sales over 50 million grew between 2011 and 2013. This according HUI Research’s annual publication Industry Facts.
The trend towards larger stores is strongest in industries sports and electronics.
In these two industries, the proportion of stores with sales over 50 million increased by as much as 8.9 and 5.9 percentage points between 2011 and 2013.
The strong trend towards larger stores in the two industries can be explained by increasing competition and the entry of foreign retail chains, which has led to increased efficiency needs of retailers.
“The big chains seems to have put in a higher gear. It’s new and tougher times in the retail world and it requires much more of the chains today to survive in the market. Pricing pressure, intense competition and tough economic times have made that the big companies bigger, because they have been able to streamline and take advantage of economies of scale”, says Andreas Svensson, analyst at HUI Research.