Over the past twenty years there have been significant changes in where America shops and how it is entertained. By the early 1980s, regional mall shopping had begun to loose market share to other retail forms. Changes continue today, requiring developers, retailers, and service providers to create new types of stores and shopping centers to stay competitive. This issue discusses some of the current trends in retail and shopping center development. These trends were discussed by a panel of industry experts at the Urban Land Institute’s Fall Meeting (2002) in Las Vegas, Nevada.

Grocery stores are often an important anchor for downtown, bringing a significant amount of customer traffic to the center of a town. Downtown grocers often serve a sizable in-town market that includes elderly and residents without cars. Many of these customers depend on the convenience of a downtown food store. In many small towns, the availability of a grocery store is a signal of a community’s viability. With the rise of “superstores” (general merchandise and food) on the edge of town, many smaller grocery stores have closed their doors. The new stores are able to offer plenty of parking, a greater variety of products at lower prices. Smaller grocers often close their doors for fear they can’t compete. Others react to the new competition with the wrong strategies and loose market share. In either case, their departure often leaves downtown residents underserved. This article explores several strategies that small grocery stores can use to compete with the superstores.

This article summarizes a method for identifying market opportunities in specific retail categories. A detailed study of market demand and supply is necessary for each store category to determine market potential. Market opportunities can be identified where demand exceeds supply. After considering other more qualitative market factors including how and where local residents shop, conclusions can be drawn regarding potential business categories worthy of business expansion or recruitment efforts.