Which store format is now the most profitable?
At present, residents of big cities do not have much time for long shopping trips. Consequently, the mega format era is coming to an end. People feel more comfortable when they can quickly get into astore next to theirhome, especially if there is a high quality service, a large selection of food, fresh fruit and vegetables, as well as prepared foods to take out.
It is reported that buyers’ demand for fresh prepared foods has grown significantly. Increasingly, instead of purchasing goods once a week, consumers tend to visit a store a few times a week beforeor after work, buy for a smaller sum to always have fresh food.
In Europe, a cafe, an ATM machine, a shoe repair, a hair salon, dry cleaning and other services are usually located close to the stores of this format.
The efficiency of your store depends on its product range. To attract customers, youhave to use new methods: increase the range of prepared «foods to go», rearrange a part of the store for a cafe, organize a bakery, install a coffee machine, provide a wide range of fresh fruits, vegetables, dairy products, organize customer services mentioned earlier.
People tend to like buying healthy and delicious food near the home, without spending too much time on shopping. The more retail stores appear, the greater the competition. Customers are not interested in a low price for a poor quality product or service. Therefore, there is one more way to raise thestakes in the market - to improve the quality of service and to take the policy of personnel selection seriously.
In the Western countries, small stores next to the home, offering personal services, frozen food, large selection of fresh foods, are very popular. “Express” format stores are developing fast and bringinglarge profits. Customers like small cafes inside this kind of stores, where they can eat or buy prepared foods or pastries.
At some markets all the retail is focusedon this format. The area of those storesranges from 50 to 400 m². Stores that specialize in selling fresh prepared foods thrive as well. Since the modern society take care of their health and nutrition, the demand for this kind offoodis growinglarger year by year.
Thus, we can conclude that entrepreneurs who want to create a popular and profitable business must pay attention to small size establishments, located on minimal area, in close proximity to the customer, with quality service, availability of a cafe or a bakery, extra personal services, well developed fresh prepared foods category.
It is the format, which, according to retailers, is developing most rapidly, and bringing the largest profits.