Cox Padmore Skolnik & Shakarchy LLP
Menu 646-355-1648 Blog Contact

The Impact of Big Box Stores in Big Cities

According to a study by the Brookings Institute, large U.S. cities are growing faster than the suburbs. The shift to city life is due to the growing trend of young Americans choosing the urban life over the suburban. With more and more people living in large cities, large retailers have expanded out of the suburbs. They have also realized that city dwellers want something very different than their suburban counterparts.

Big City Shoppers Don't Want Big Boxes

Big box stores like Target, Wal-Mart and Office Depot are expanding into large cities but the result is not that "big." For these large retailers to survive in the city, they need to know what small locally owned city retailers have always known: city shoppers want smaller stores that are easily navigable and that sell smaller packages; the exact opposite of the car-focused, big-box model that has made them so successful in the suburbs.

The city versions of these big stores have attempted to meet the urban shopper's goals. For example, City Target, a store half the size of a normal Target, has attempted to meet the needs of their city shoppers by offering a small balcony patio set compared to a large one and more four packs of toilet paper than 12 packs. These changes recognize the smaller living spaces in cities and the fact that people who live in large cities often don't have cars and rely on public transportation. No cars make it difficult for shoppers to carry large items home.

Big Box Stores & Customer Service

These large retailers disguised in smaller packages, however, lack one thing that makes a city's neighborhood store special: personalized customer service. The existing small city retailers know when they are running out of a product and also know what their customers want. This is because they have personal contact with their customers. Large, national warehouse stores are not sensitive to the local's needs and wants.

A small city business owner needs to be aware of the potential effects of these large big box stores. While these stores have a lot to offer, they can also lack the customer service that a smaller retailer can provide.

Source: New York Times, "Retailers' Idea: Think Smaller Push," Stephanie Clifford

Our firm often handles the legal aspects of business start-ups and incorporation - such as selecting the correct form of business entity to form and drafting the proper documentation. If you would like to learn more about our business practice, please visit our New York Business Formation page.

No Comments

Leave a comment
Comment Information

Consult Our Skilled, Pragmatic Manhattan Commercial Litigation Attorneys

Tap To Request An Exploratory Consultation ยป

Entrepreneurial, Corporate and Individual Legal Services For Domestic And International Clients

To Request A Consultation By Phone, Call: 646-355-1648 (NY/NJ) | 646-355-1648 (CO)

New York Office
630 Third Avenue
19th Floor
New York, NY 10017

Phone: 646-355-1648
New York Office Map

Great Neck Office
98 Cutter Mill Road
Suite 310N
Great Neck, NY 11021

Phone: 646-355-1648
Great Neck Office Map

Hackensack Office
27 Warren Street
Suite 304
Hackensack, NJ 07601

Phone: 646-355-1648
Hackensack Office Map

Denver Office
1060 Humboldt Street
Denver, CO 80218

Phone: 646-355-1648
Denver Office Map