Small Space, Big Impact
Small-box retailers are turning the table in a world where bigger means better. These retailers are outshining the big retailers with their customer-centric attitude and innovation approach. These potent packet-sized units are thriving amid consumer preferences shifting and technology and are delivering as per customers’ requirements. Small-box stores are creating their own niche in the retail sector by adopting hyper-localized collections to seamless omnichannel journeys.
So, let’s read and get to know the key trends and insights regarding small-box retail.
As per Small Specialty Retail Stores in the US – Market Research Report (2015-2030), revenue for small box retailers is anticipated to grow at a CAGR of 4.0% to $68.4 billion by the end of 2025.
According to IBIS World’s Report on Small Specialty Retail Stores in the US—Number of Businesses (2005–2031), as of 2024, there were 247,798 Small Specialty Retail Stores in the US.
The number of Small Specialty Retail Stores in the US has grown by an average of 6.5% per year between 2019 and 2024.
As per Morning Brew’s article, Big-box retailers are going small; Macy’s announced that by the end of 2025, they will close 150 locations and open 30 smaller ones, each the size of 20% of a Macy’s mall.
Until March 2025, Leslie’s Poolmart, Inc., was the biggest Small Specialty Retail Store in the US.
Leslie’s Poolmart, Inc.’s revenue in 2025 was $1,381.9 million.
Small-box stores are breaking the stereotype that success can be measured by square footage. They prove that consistent focus on customer experience, adaptableness and technology adoption can be the keys to success. Small-box stores are a perfect example that businesses must re-evaluate their strategies and prioritize customer needs to explore endless possibilities.
