>> The holiday shopping strategy for some retailers this year, go small or get lost forever, as industry giants like Amazon and Walmart force more shops into extinction. I'm Conway Gittens in New York City, outside of this Toys "R" Us. Talk about down-sizing, this holiday store is just 35,000 square feet, which pales in comparison to the 110,000 square foot facility Toys "R" Us used to have here in Times Square, which catered to both residents and tourists alike.
Toys "R" Us in bankrupcy and forced to downsize to save money, hoping that going small will bring an added big benefit, higher sales fueled by a cozier retail atmosphere that shoppers won't find online or at a massive location. But it's not just bankrupt retailers trying this out, Target is rolling out smaller locations in urban cities centers, going after holiday shoppers who want the convenience of shopping near work without the hassle of looking for a parking space or waiting for online deliveries.
And Nordstrom, launching more Nordstrom Rack locations to take on successful discounters, like T.J. Maxx. But none of the three retailers wanted a spotlight on the not so secret experiment, denying a request to bring our cameras inside. It was the former CEO of Macy's who famously said, America is severely over shopped.
Average sales per square foot have dropped 13% since the start of the century, while online sales have soared. Leaving retailers with no other choice than to go on a square foot diet. The money saved from space that's not producing sales can be piled into sprucing up remaining stores, investing in technology to better compete online, and improving options that capitalize on both, like ship to store and returns, which can't always be matched by web only retailers.
A shopping list that can make the difference between merely surviving the holidays, or staying alive much longer.