The retail exodus from America's downtowns began decades ago as merchants yearned for bigger stores with more merchandise. A recent survey of 1,000 people by the retail consulting firm Kurt Salmon Associates found that 21 percent shopped more at stores in their neighborhood this year than they did in 1997. Since late 1997, Sears has opened 13 compact stores mostly in communities that aren't a quick drive to any of their full-line stores. Next year, Home Depot will begin testing its Villager's Hardware concept with four stores in New Jersey. Finally, these retailers are beginning to see that people don't want to travel to shop.
Price is clearly the biggest threat posed by the new mini chain stores.
They can charge less than their local neighbors because the giant corporations supporting them have better purchasing power with suppliers.