The Incredible Shrinking Grocery Store

When it comes to grocery stores, size matters.

The big-box chains such as Wal-Mart, who have established themselves as competitive food retailers, aren't quite passé yet. But a new trend has emerged – driven on one end by aging customers who are downsizing and on the other by urbanites, often childless, who make cooking only an occasional habit.

What it's adding up to is a shift toward smaller stores, particularly in urban centres. Grocers are moving away from 100,000-square-foot monster spaces (which is where the average Wal-Mart or Highland Farms grocery stores sits) to stores in the 30,000- to 50,000-square-foot range, with boutique operators coming in at 15,000.

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