As consumer behaviors shift and retail landscapes continue to change, big-box retailers are rethinking what large-format stores look like, how they operate, and the role they play in both physical and digital ecosystems. Three trends are shaping the next chapter:

Right-Sizing & Format Diversification

Big-box retail is no longer a one-size-fits-all model. Retailers are experimenting with new formats to stay relevant, efficient, and closer to their customers.

Hybrid models are becoming the norm as stores integrate robust digital services—like in-store pickup, curbside, and ship-from-store—to create seamless, omnichannel experiences.

Downsizing with flexibility is also on the rise. Retailers like Target and Macy’s are testing smaller or more modular, curated formats tailored for dense urban neighborhoods, allowing them to serve shoppers where they live and work.

Macy’s Small Format expansion highlights this pivot, while global players like Primark are exploring hybrid approaches to blend large and small-scale footprints.

The takeaway: Retailers are right sizing not just for efficiency but to meet consumers with the right offer, in the right place, at the right scale.

Repurposing Distressed Big Boxes

The fallout of once-dominant brands like Sears, Bed Bath & Beyond, and Party City is reshaping the retail real estate landscape. For many big-box players, vacant anchors are now opportunity.

Adaptive reuse strategies are allowing retailers to move faster and at lower cost than new construction, while also breathing new life into struggling centers, reducing vacancies. 

The takeaway: Repurposing isn’t just practical—it’s becoming a competitive advantage in speed-to-market and community revitalization.

Category Reinvention & Shop-in-Shops

To optimize underutilized space and enhance shopper engagement, big-box retailers are reinventing categories and welcoming shop-in-shop experiences.

Shop-in-shops create curated, immersive destinations that surprise and delight—whether it’s beauty inside department stores or branded pop-ups within discounters.

Category reinvention allows retailers to turn stale square footage into growth engines, aligning with shifting consumer demand and new product categories.

These strategies both enhance the customer journey and diversify revenue streams, making stores more dynamic and resilient.

The takeaway: By rethinking space as an asset, retailers can create more engaging, profitable formats that keep shoppers coming back.