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NORTH BERWICK, Maine — Hannaford Supermarkets has debuted its small-box format here. The 20,000-square-foot unit is less than half the size of the chain’s conventional outlets, and it could serve as a growth vehicle in atypical markets.
Hannaford Supermarkets has debuted its small-box format here. The 20,000-square-foot unit is less than half the size of the chain’s conventional outlets, and it could serve as a growth vehicle in atypical markets.
The store offers a wide assortment of fresh produce; a walk-in beer cooler; gluten-free, natural and organic items; and a pared-down selection of everyday groceries.
Company executives said the design is well suited for fill-in sites between larger stores. They likened it to the formats of Sprouts Farmers Market and The Fresh Market. The objective is not to compress a bigger store’s mix into the small box, but to emphasize fresh food, they said.
The opening here in southern Maine, near Hannaford’s headquarters in Scarborough, comes amid a focus on small boxes at mass merchandisers Walmart and Target Corp.
Both retailers are emphasizing small formats to compete with dollar, drug and convenience stores for urban shoppers, many of whom tend to make more frequent shopping trips than their suburban and rural counterparts.
Target has said that in 2015, for the first time, it will open more smaller stores than general merchandise stores. The company plans to open nine smaller-format stores this year and six big-box stores.
Even with that push, Target significantly lags the pace of experimentation with smaller formats set by rival Walmart, which opened about 240 small-box stores, along with 120 Supercenters, in its last fiscal year.
The discounter’s Neighborhood Markets continue to offer Walmart executives cause for optimism. Comparable-store sales at the stores have risen steadily. The outlets, typically 38,000 square feet, meet a variety of needs by selling fresh produce and meat, health and beauty supplies, household items, and pet supplies. Most also have a drive-through pharmacy and sell gasoline as well.
