The average store size in the US is the smallest it's been in at least 17 years
American retail is shifting toward smaller physical stores as more shopping moves online, raising questions about how much in-person space is really needed and what to do with excess commercial real estate. Commenters trade off the convenience and selection of e‑commerce against the ability to inspect goods in person, noting trust issues with marketplaces like Amazon and praising curated, membership-based chains such as Costco and Aldi. Many expect more direct-to-consumer brands and hybrid models where stores function as showrooms or pickup/return hubs, while some worry about the long-term impact on malls, big-box formats, and urban land use.
In‑Store vs Online Shopping
- Some find non-food items hard to buy online due to quality uncertainty and unreliable, shilled reviews; they prefer in‑person inspection.
- Others rarely visit stores, citing crowds, inconvenience, and sufficient online options with delivery and returns.
- Several note that physical stores often lack specific items or sizes, functioning more as showrooms that push customers to order online anyway.
Store Size, Layout, and Experience
- Large US stores are described as overwhelming; some want many small specialized shops but say landlords prefer a single large tenant.
- Big chains intentionally reshuffle layouts and make navigation harder to increase time in store and impulse purchases; some think this confuses correlation with causation and mainly annoys shoppers.
- Warehouse clubs like Costco are called out for “gauntlet”-style layouts that push impulse buys on the way to staples.
Costco, Aldi, and Bulk Retail Economics
- Many praise Costco: perceived strong value, limited but curated SKUs, good quality, and a generous return policy.
- Debate over economics: some claim items are “at cost” with profits mostly from membership fees; others point to 8–12% gross margins and ~2–3% net margins, arguing markup isn’t negligible.
- Bulk buying is seen as time‑efficient and often cheaper, but only if you have storage and can use quantities before they spoil; some say quantities don’t work even for large families.
- Co‑location of Costco with smaller discounters (Aldi, Trader Joe’s) is seen as a powerful combination for “essentials.”
Direct‑to‑Consumer and Brand Dynamics
- Many expect or observe more manufacturers selling directly online, cutting out retailers and capturing margin.
- Established brands (Apple, Nike, Tesla, etc.) already do this; newer DTC brands often eventually enter big‑box retail for cheaper customer acquisition.
- Some distrust Amazon due to counterfeits and low‑quality “brands,” preferring reputable retailers or even direct‑from‑China sites despite trade‑offs in curation and accountability.
Vacant Retail and Real Estate
- Unclear what will happen to excess commercial space.
- Converting large buildings to residential is seen as technically and economically difficult; demolition and rebuild or parkland are suggested alternatives.