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The superstore format in Australia: Opportunities and limitations
Authors:Bill Merrilees and Dale Miller
Abstract:This article outlines the development of both food superstores and non-food superstores (referred to as category killers) in Australia. Ten retail categories have been identified where there is a moderate to high rate of adoption of the superstore format (more than 20 outlets). These ten categories have been analyzed to identify the success factors in superstore development, which include accurate assessment of consumer one-stop shopping needs, sufficient finance, good store design skills and a balanced program of store expansion. The article explores the managerial implications for traditional retailers, for existing superstore retailers (especially the issue of optimal store size), for existing convenience store operators, department stores and for manufacturers and wholesalers. There are limitations of the superstore format in categories which are fashion orientated or where consumers require close distance convenience. These limitations actually provide opportunities to a myriad of retailers in fast food, dry-cleaning, banking, florists and the like, to reassess their locational and service delivery strategies. The superstore concept is clearly a revolution in itself, but its shock waves are provoking and stimulating second order mini-revolutions in traditional specialist stores, department stores, convenience stores, warehousing and manufacturing.
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