Financial Times FT.com

Small box retailers

Published: August 27 2008 15:05 | Last updated: August 27 2008 19:10

How long will customers be prepared to drive for miles and stride past aisles of camping equipment and children’s books just to collect a few essential groceries? For the past few years, shoppers seeking convenience have increasingly turned to discounters operating smaller local stores. In France, for example, Carrefour has seen moribund sales growth from its hypermarkets for the best part of a decade.

In the US, the trend towards localism is getting a lift from the movement towards healthier lifestyles – eating fresh produce tends to require smaller and more frequent shopping trips. Hence rapid growth for chains such as Whole Foods Market, an organic foods specialist, which has doubled its sales in the past five years. Tesco, the UK-based retailer that has generally proved surefooted overseas, is staking its US expansion on these themes, with plans to open up to 200 small Fresh & Easy stores on the west coast by February.

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