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The size of the store also takes away from personalized service and doesnt allow for a product assortment tailored to a particular demographic niche.
We believe that for.S.
Lower-income shoppers, in particular, find that they are not comfortable in large stores because service is less personal and the broad assortment of products drives home how little they can afford.Savvy operators of chains of smaller stores are able to achieve efficiencies of scale in procuring their merchandise and are then able to distribute those goods to specific stores through distribution channels that have been much improved by computerization and supply chain logistics.The amount of time it takes to negotiate the seemingly endless aisles is a drawback to harried shoppers and it's made worse when they hit the checkout and run into dozens of other people in a hurry.Interestingly, the small format trend is widening in both Europe and Latin America, which have entirely different demographics and income cuanto gana un futbolista profesional en mexico levels.Beaumonts new format did so well that it attracted the attention of giant.All the big box retailers need a more balanced approach to reach their customers and will benefit in important ways from what they learn about shopper preferences in smaller format contexts.Tesco, for example, plans to enter the.S.However, Oxxo frequently makes all of the necessary capital investments to ensure consistency across the chain, such as purchasing standard shelving, microwaves, and refrigerated displays.The popularity of small format retail stores isnt limited to Europes mature and affluent markets.Carlos Navarro ( ) is a vice president with Booz Allen in Mexico City.European retailers, such.K.-based grocer Tesco Corporation and German discounter Aldi, may be the first to test the.S.Regardless of whether the smaller stores are selling groceries, electronics, clothing, or home goods, there are three major reasons that retailers should consider how small formats could work in their markets.
Oxxo is building on the regions traditional changarros, or mom-and-pop stores, by personalizing its service for its customers.Going farther to a bigger store is only a good value, in terms of the total cost of purchase, if the big store offers substantially lower prices and even then, the resulting savings are usually not enough to offset the cost of public transportation.Sainsbury PLC, which acquired the smaller retailer in November 2004.He focuses on commercial, marketing, and distribution strategy for multinational and local consumer and health companies in Latin America.The stores are, in effect, the customers pantries.Manufacturers of consumer packaged goods (CPG too, can cash in on this opportunity, by working with their retail partners to mine the personalized data available and creating new products accordingly.Retailing in Latin America, by contrast, is focused much more on low-income and larger families.
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