IKEA, Bunnings, Myer and supermarkets all look to smaller store formats for big growth

In retail, it seems size does not always matter.

IKEA, Woolworths, Coles, David Jones, Myer and even Bunnings are all competing for smaller-format sites as the brands seek to build networks of boutique-sized stores to service the capital cities’ time-poor, affluent shoppers.

In Sydney, Woolworths is opening its smallest supermarket so far, with the launch of a 310-square-metre store in York Street in the CBD, and insiders claim its scaled-down city supermarkets are some of the busiest and most lucrative outlets in its network.

The new Woolworths format will offer fresh food to go and a smaller line of dry groceries for city shoppers and the new influx of residents. It is understood this will be one of many for the supermarket giant in the Sydney and Melbourne central business districts.