This document provides a comprehensive analysis of the big box retail industry from 1962 to 2016. It outlines the inception and early growth of major retailers like Walmart, Target, and Kmart in the 1960s-1970s. It then discusses leadership decisions, failed expansion attempts, and the impacts of internet retailers like Amazon emerging in the 1990s-2000s. The document concludes by noting trends towards smaller store formats and recommendations for how large retailers can adapt to remain competitive in the future.

1. A COMPLETE ANALYSIS OF THE BIG
BOX RETAIL INDUSTRY FROM
1962 TO 2016
B Y : S T E P H E N E X E T E R
From Big Box to Inbox

2. Outline
 Inception of big box retail – 1962
 Growth & customer impact
 Leadership decisions / Failed ideas
 Sizing up the industry from 1990 – 2005
 Internet sales
 Amazon
 Transitioning to small box
 Conclusion / Recommendations

3. Early 1960’s
 1962 – Creation of Wal-Mart, Target, & Kmart
 Paradigm shift
 Regulations on discounts
 Limited manufacturer input
 Perfect economic timing
 “Corner store blues”

4. Growth & Impact on Customers
 Stores by 1970
 Wal-Mart - 38
 Kmart - 180
 Target - 40
 Sales by 1970
 Wal-Mart $44.2M
 Kmart $2.2B
 Target $53M
 New business entry in 1977 was at 17%
 Beat the recession of the 1980’s

5. Leadership Decisions
 Customers wanted year round options
 Advertising
 Newspaper (lucrative)
 Planogram
 Target
 Strategic geographic locations
 Copycat market

6. Failed Ideas & Issues
 Best Products – Showroom
 Woolco – Took on too much debt
 Circuit City
 Kmart cutting customer service / Loyalty program
 Political change by the end of 1990’s

7. Sizing up the industry 1990-2005
 Continued growth for Wal-Mart and Target
 Wal-Mart becomes largest retailer in the world
 Beginning of financial issues for Kmart
 Creation of internet
 Amazon
 eBay

8. Market Share 1990-2000

9. Amazon
 Went public in 1997 – reported $147M in sales
 First year to turn profit – 2003
 Mimic big box stores without physical location
 Eliminated overhead in nearly every facet
 By 2004 they reported sales of $6.92B and had
expanded into almost every sales category as the
other big box stores

10. Amazon – Diversification Strategy
 2015 Net Income of $596M
 Drone delivery
 Integrating their own delivery branch
 Web services / Cloud computing
 Amazon Prime
 Warehouse / logistics innovation

11. From Big Box to Small Box
 This is becoming the trend in the big box industry
 Target
 Best Buy kiosks
 Wal-Mart Express
 Already established Dollar Stores

12. By The Numbers

13. Shipping Costs

14. Busiest Shopping Day of the Year

15. Conclusions
 Logistics experts
 Missed the opening for online domination
 Market saturation
 Inconvenient experience
 Increase in labor / Generational change
 Can no longer win on price

16. Recommendations
 Innovative ways to recycle old buildings
 Solar energy
 Personalization
 Sharable experiences
 Distribution options
 Beat Amazon and others at their own game
 Online focus
 Recruit millennials

17. References
 Johnsen, M. (2016, February 25). Kmart realizes full-year sales decline of 15.6%,
but comps moving in right direction. Retrieved August 12, 2016, from
http://www.drugstorenews.com/article/kmart-realizes-full-year-sales-
decline-1-comps -moving-right-direction

 Kielar, A. (2015, August 4). No More “TargetExpress” Or “CityTarget,” Just Small
Target Stores. Retrieved August 15, 2016, from
https://consumerist.com/2015/08/04/no-more -targetexpress-or-citytarget-
just-small-target-stores/

 Kohlstedt, K. (2016, June 27). Ghost Boxes; Reusing Abonded Big Box Stores
Across America. Retrieved August 16, 2016, from
http://99percentinvisible.org/article/ghost-boxes- reusing-abandoned-big-box-
superstores-across-america/
 Lam, B. (2016, May 11). Why the Biggest Big-Box Stores Survive. Retrieved August
28, 2016, from http://www.theatlantic.com/business/archive/2016/05/big-
box-future/482211/
 Lee, M. (2015, April 15). The American Economy of the 60s and 70s. Retrieved
August 02, 2016, from http://classroom.synonym.com/american-economy-
60s-70s-11277.html

18. References
 Rivlin, G. (2005, July 10). A Retail Revolution Turns 10. Retrieved August 10, 2016, from
http://www.nytimes.com/2005/07/10/business/yourmoney/a-retail-revolution-turns -
10.html?_r=0

 Schoenberger, C. R. (2002, January 18). How Kmart Blew It. Retrieved June 9, 2016, from
http://www.forbes.com/2002/01/18/0118kmart.html

 Sidel, R., Yadron, D., & Germano, S. (2013, December 19). Target Hit by Credit-Card Breach.
Retrieved August 17, 2016, from
http://www.wsj.com/articles/SB10001424052702304773104579266743230242538

 Thomas, A. R. (2016, January 18). 5 Lessons from Walmart's Decline. Retrieved August 9,
2016, from http://www.industryweek.com/companies-executives/5-lessons-walmarts -
decline

 Udland, M. (2016, March 15). Amazon today is like Walmart in the 1980s, and that should
scare anyone in its way. Retrieved July 18, 2016, from
http://www.businessinsider.com/amazon-planning-world-domination-2016-3

 Wailgum, T. (2007, October 17). 45 Years of Wal-Mart History: A Technology Time Line.
Retrieved August 9, 2016, from http://www.cio.com/article/2437873/infrastructure/45
-years-of-wal-mart-history--a-technology-time-line.html

19. References
 Wolf, G. (2006, September 15). Kmart Corp. Retrieved August 9, 2016,
from http://www.encyclopedia.com/topic/Kmart_Corp.aspx

 Yarow, J. (2013, October 28). Former Amazon Employee Explains How
The Company's Business Model Really Works. Retrieved August 11,
2016, from http://www.businessinsider.com/amazons-profits-what-
people-dont-understand-2013-10
 Yohn, D. L. (2016, June 22). Big-Box Retailers Have Two Options If They
Want to Survive. Retrieved August 28, 2016, from
https://hbr.org/2016/06/big-box-retailers-have-two -options-if-they-
want-to-survive

 Zmuda, N. (2012, March 19). Walmart, Target, Kmart, Kohl's Lead 50
Years of Retail Revolution. Retrieved August 16, 2016, from
http://adage.com/article/news/walmart -target-kmart-kohl-s-lead-
retail-revolution/233379/

20. Questions