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Nielsen TV: Retail Myth Busting—The Future of Store Size and More

FMCG and Retail | 11-01-2016
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True or False? Consumers will increasingly prefer super-stores that offer thousands of product choices in one place.

Contrary to common perception, this assertion is false. Industry players have long believed that large-format stores will eventually take over the retail landscape, but consumer shopping behaviors disprove the “bigger is always better” myth. Although large stores still account for 51% of global sales, smaller channels like drug stores and convenience stores are growing sales up to eight times as fast their larger counterparts*. Today’s busy consumers are making more frequent trips—an average of 2.5 per week to buy fresh food—and taking advantage of new e-commerce options for hard-to-find products. Therefore, many are shifting their brick-and-mortar shopping to more compact, easier-to-navigate stores with focused product selections.

This isn’t the only misunderstanding that has snuck its way into wide acceptance. Watch Nielsen’s Modern Myths and Retail Realities webinar recording for more insight on store size as well as other retail misperceptions about developing markets, promotions and e-commerce. Louise Keely, EVP and global retail practice leader, puts these myths to the test against new Nielsen data to discuss retail's complex and fast-changing dynamics and how smart companies of all sizes and formats can take advantage of the realities. Below, Louise gives a detailed sneak peek of the insights behind evolving store sizes and aligning the shopping experience with specific “missions.”

Note

Refers to channel sales growth rates in developed markets, measured in USD and adjusted for inflation. Source: Nielsen Retail Measurement Data. Collection dates vary by country and category, but most were between September 2014 and January 2015.

Tagged:  NIELSEN TV  |  BRAND MARKETING  |  SHOPPER  |  CPG AND RETAIL  |  DEMAND  |  GROCERY
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