Hy-Vee, an employee-owned supermarket chain, recently opened the doors to a new concept store in Davenport, Iowa called Hy-Vee Fast & Fresh. The 10,000-square-foot store is one-tenth the size of Hy-Vee's largest store and caters to on-the-go consumers with comparable offerings to a convenience store, such as fuel pumps, frozen food, plus and wine and spirits.
The small-format store retains some of the familiar features of larger Hy-Vee stores, including a growler craft beer station, grab-and-go meals and a Starbucks Coffee store with a drive-thru. For the sake of saving time, consumers may also make the most of Hy-Vee's Aisles Online click-and-collect service at the new location.
Retailers that still want to maintain a physical presence yet want to skirt the high cost of sprawling brick-and-mortar spaces are turning to small-format stores to cater to busy consumers and compete with online retailers.
Why This Trend Is Growing
- Small Format Stores
- The rise of small-format stores allows retailers to cater to busy consumers and compete with online retailers in a cost-effective way.
- Convenience Retail
- The concept of condensed grocery stores caters to on-the-go consumers, offering convenience and a wide range of products.
- Click-and-collect
- The inclusion of Hy-Vee's Aisles Online click-and-collect service demonstrates the growing trend of online ordering and in-person pickup.
Industries Being Reshaped
- Supermarket
- Supermarket chains can explore the opportunity of opening small-format stores to target busy consumers and provide convenience while minimizing costs.
- Convenience Store
- The condensed grocery store concept presents an opportunity for convenience stores to expand their offerings and compete with larger supermarkets.
- Online Retail
- Online retailers can consider incorporating a click-and-collect service to provide a hybrid shopping experience for their busy customers.
