Supermarkets Face a Growing Problem: Too Much Space

The Wall Street Journal just published another article about the ongoing struggles of brick & mortar retail stores. The grocery sector is facing overbuilding and new entrants - both overseas grocers (Aldi, Lidl) and other retailers (dollar stores, convenience stores) who are increasing their fresh food offerings to draw traffic.

Commercial square footage of retail food space per capita last year set a record, with 4.15 square feet of food retail per person, according to CoStar Group , a
commercial real-estate firm, nearly 30 times the amount of space allocated to groceries at major chains in 1950.

 

“Everybody is getting into the grocery business,” said David Hirz, chief executive of
Smart & Final Stores Inc., a California-based warehouse grocer.

 

You can find the full article here:

Supermarkets Face a Growing Problem: Too Much Space