Big box stores have been a staple in the retail landscape for over 60 years. These massive retail giants have grown from being novelty stores to household names, offering vast selections of products at affordable prices. Despite the growth of online shopping, physical stores remain a popular choice for consumers. Recent data from the U.S. Census Bureau reveals that most retail purchases are still made in-store, and experts from McKinsey predict that by 2023, e-commerce will account for just 21% of retail sales.
Even in an era of online shopping, big box stores continue to thrive, offering consumers the experience of in-person shopping, immediate product access, and the convenience of picking up large quantities of essential goods at competitive prices. With stores like Walmart attracting nearly 265 million customers weekly, getting your product into these retail giants can help you tap into an extensive consumer base.
If you're a business owner, deciding whether to sell your product in a big box store is an important decision. This chapter will explore the advantages and disadvantages of partnering with big box stores and why they should be part of your retail strategy.
A market is simply a place where buyers and sellers meet to exchange goods and services. Physical markets, also known as brick-and-mortar stores, provide consumers with the opportunity to interact directly with sellers. In 2019, there were over 442,000 brick-and-mortar retail stores in the United States, according to Statista. While these stores are tangible, markets can also exist online, with many leading physical retailers like Walmart, Best Buy, and Home Depot also operating e-commerce platforms.
Even in an age of online shopping, physical stores still hold significant advantages for both consumers and retailers. Here are some key reasons why consumers continue to prefer shopping in-store:
Hands-On Experience: Consumers appreciate being able to touch and test products before making a purchase. According to the International Council of Shopping Centers, 73% of consumers prefer to touch or try a product in-store before buying.
Easy Returns: Returning a product in-store is often easier than returning it by mail, and many consumers prefer face-to-face customer service.
Higher Spending: In-store shoppers tend to spend more money compared to online shoppers. Research shows that 71% of in-store shoppers spend $50 or more compared to 54% online.
Impulse Purchases: Consumers are more likely to make spontaneous purchases when shopping in-store. Strategic product placements, especially near checkout counters, can encourage impulse buying.
Discovery: Shopping in-store allows consumers to browse and discover new products they might not have encountered online.
Instant Gratification: Shopping in-person gives consumers the instant satisfaction of receiving their products immediately, unlike waiting for online deliveries.
However, physical stores do have some drawbacks:
Limited operating hours compared to 24/7 online availability.
Crowds and long lines during peak hours.
The need for consumers to leave their homes, which some may find inconvenient.
Despite these downsides, brick-and-mortar stores continue to thrive, especially as many retailers combine the best of both worlds by offering online shopping alongside in-store experiences.
Selling your products in big box stores like Walmart, Target, or Costco can offer significant advantages over smaller retail outlets. Here's why:
Stability and Longevity: Big box retailers have a long track record of success. For instance, Walmart has been a leader in retail for decades, generating billions of dollars annually. While small businesses have a higher risk of failure, big box stores offer more stability.
Wider Audience Reach: Big box stores have massive customer bases. For instance, Walmart's reach extends to millions of customers every week, both in-store and online. Smaller businesses simply can't match that level of visibility.
Marketing Power: Big retailers invest heavily in advertising to attract customers. This can directly benefit your product, as the more people that visit these stores, the greater the chance your product will be discovered.
Adapting to Consumer Trends: Large retailers have the resources to keep up with changing consumer habits. They can invest in new technologies like self-checkouts, curbside pickup, and enhanced online shopping experiences, all of which make shopping more convenient and appealing.
Familiarity: Consumers trust big box stores because they are familiar and reliable. This sense of trust is crucial for first-time buyers who may be hesitant to purchase from lesser-known brands.
Not all products are suitable for big box stores. Items that require intricate craftsmanship or are highly niche may be better suited to smaller stores. However, consumer packaged goods that can be mass-produced quickly are ideal for large retailers.
Some products that thrive in big box stores include:
Food items
Beverages (beer, wine, etc.)
Pharmacy products
Books and music
Pet food and supplies
Additionally, consumers prefer purchasing certain items in-store rather than online. These include:
Electronics
Sports equipment
Health and beauty products
Clothing and shoes
Home improvement products
If you have a product that appeals to a mass audience, especially one that can be bought on impulse or in large quantities, partnering with a big box store could be an excellent opportunity to grow your business. With their vast reach, marketing power, and the ability to adapt to consumer needs, big box stores are a valuable avenue for getting your products in front of a larger, more diverse audience.
If you’re interested in learning more about how custom displays can help showcase your products in big box stores, feel free to reach out to us at WOW Display.
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