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Multi-format retail offers sellers the opportunity to grow their business under a single brand

Multi-format retail has slowly entered the retail landscape over the last two decades. The term is specific to the various formats that retailers employ in their brick-and-mortar stores for multiple channels, including online channels and catalogs. Carol Spieckerman, president of Spieckerman Retail, spoke about how the current multi-format mojo is changing. It is by major retailers and is the reason why the trend is growing.

“The fact is that multiformat retail is quietly the rule rather than the exception. Refining and evolving existing formats is a big part of the multi-format story.”

A major chain that will change the retail industry

  • General Dollar – Efficient, small-format general stores branching into Popshelf stores to attract suburban middle-class shoppers, DGX stores to tap into urban markets, and the concept by opening stores in Mexico Plans to test internationally.
  • walmart – Large retailers exploring new opportunities for convenience stores and out-of-stock pickup locations. What’s interesting about Walmart is its willingness to try out ideas in different places, including the now-defunct “Walmart Pickup with Fuel” concept.
  • Macy’s – As of August 2022, the renowned department store is testing six Market by Macy’s concept stores in Texas and Georgia. These are smaller malls designed to be placed in shopping centers rather than larger malls where new items arrive several times a week and regular events including trunk shows are held to attract more frequent visitors. It’s a store.

These are just a few of the stores experimenting with the new format. Others include Cole’s plans to open 100 mini stores by 2026. Expansion into Petco livestock products and services. 7-Eleven is the continuation of the successful Evolution concept including dining, cocktails and touchless payments. HEB (a Texas grocery store chain) has launched a new format that incorporates household items.

So why are retailers flexible with multi-format mojo?

There are multiple reasons and strategies depending on what the retailer is trying to achieve and what kind of consumer they are trying to reach. “But if you’re in the B2B space and you’re selling to retailers and brands, it’s really beneficial to break it down and learn why, because it’s so integral to your strategy and their future. Because it’s very important for the growth of ,” Spikerman said. She goes on to mention her three main reasons why retailers have decided to engage in multi-format brick-and-mortar stores and the implications for companies selling to these stores.

Diversification of categories

As retailers experiment with new formats, they can offer shoppers new categories of products. Examples include Dollar General and Target adding food to their store offerings. Food is a popular addition as it encourages more frequent store visits and increases sales, including sales of non-food items. Grocers do the same when adding housewares, clothing, and popular non-food seasonal items to their available inventory.

Location extension

Without new categories, retailers are limited to specific locations and shopper demographics. For example, Petco’s farm offering gives the company access to rural areas that cannot support large stores. Dollar General’s DGX attracts urban shoppers with its popular grab-and-go items. And that his Popshelf concept is designed to attract suburban consumers who may have never shopped at a dollar store.

Category Diversification + Location Expansion = New Shopper Segments

Ultimately, capturing new shopper segments will increase profitability and help retailers stay in business longer.

Brick-and-mortar stores remain central to retailer strategy

“The multi-format movement has helped keep our brick-and-mortar stores relevant and at the forefront of all retailers. This represents an opportunity for everyone doing business with multi-format retailers. ….because through the expansion of their format you can expand with them too, so one retailer can now offer all kinds of opportunities.

“In short, there’s never been a better time to position yourself in a multi-format opportunity and be flexible with multi-format mojo.”