While smaller stores are not a new concept, they are evolving to meet specific needs for some major retailers, including a focus on urban expansion.

Recent examples like Amazon’s Whole Foods Market Daily Shops and CVS’s plans to test mini pharmacy stores highlight the potential of ongoing experimentation with small format stores in urban retail.

So far, Amazon’s new smaller format grocery stores that stock a tighter selection have opened in three neighborhoods in New York City: Lenox Hill, East Village, and Hell’s Kitchen. Meanwhile, CVS has said it plans to open 12 mini stores in cities and towns where “residents already may be buying their household items from Walmart or dollar stores,” per a report in the Wall Street Journal.

According to retail experts who spoke to Retail Brew, Amazon’s strategy is seen as experimental, focusing on urban densification and smaller baskets. While CVS’s approach is viewed as strategic, aiming to profit from urban convenience and beauty products at a time when the traditional drugstore model is under pressure.

Keep reading here.—VC

Target is offering a basket of “must-have” back-to-school items for less than $20, as it promises to maintain 2024 prices on products such as crayons, notebooks, and folders despite economic uncertainty surrounding tariffs.

Target has tapped the promotional strategy frequently in recent years, cutting or maintaining prices on important seasonal categories such as toys or Thanksgiving meal supplies, while also promoting lists of related items as falling under a certain amount.

Keep reading here.—AV

The decision to buy that $600 collectible Labubu doll with a Buy Now, Pay Later (BNPL) loan might soon impact your creditworthiness. The company that assigns credit scores, FICO, said yesterday that starting in the fall, it’ll incorporate BNPL borrowing into its scoring formula.

The loans that allow customers to break up purchases into four installments have become increasingly popular, particularly among young shoppers—but unlike credit card borrowing, they have had no bearing on credit scores. FICO’s move comes after BNPL provider Affirm recently began reporting its loans to credit agencies Experian and TransUnion.

Keep reading here on Morning Brew.—SK

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