Big Box Retailer

What is a 'Big Box Retailer'

A big box retailer is a retail store that occupies an enormous amount of physical space and offers a variety of products to its customers. These stores achieve economies of scale by focusing on large sales volumes. Because volume is high, the profit margin for each product can be lowered, which results in very competitively priced goods.

BREAKING DOWN 'Big Box Retailer'

The term "big-box" is derived from the store's physical appearance. Located in large-scale buildings of more than 50,000 square feet, the store is usually plainly designed and often resembles a large box. Wal-mart, Best Buy and Ikea are examples of big-box retailers.

RELATED TERMS
  1. Store Of Value

    Any form of commodity, asset, or money that has value and can ...
  2. Chain Store Sales

    An indicator that provides information on the monthly sales volumes ...
  3. Comparable Store Sales

    The amount of revenue a retail location generated in the most ...
  4. Online-To-Offline Commerce

    A business strategy that draws potential customers from online ...
  5. Atmospherics

    The controllable characteristics of a retail space that entice ...
  6. Wide Variety

    A merchandising strategy in which a retailer stocks a large number ...
Related Articles
  1. Investing

    The Future of Retail Is Not Big Box Stores

    The future of shopping involves a lot more Internet and a lot less window shopping at the mall.
  2. Stock Analysis

    5 Retailers Set to Close More Stores in 2016 (FINL, GPS)

    Discover retail stores that have already announced plans to close stores in 2016. Some expect a new economic downturn, which may lead more stores to close.
  3. Investing News

    Wal-Mart Closes 269 Stores: Why Wal-Mart Express Failed

    Wal-Mart is closing 269 stores from its portfolio to further streamline its operations.
  4. Savings

    Winning Retailers Amid Sales Slump

    Declining department store retail sales and the exceptions to the rule after the end of the Great Recession.
  5. The Demise of the Department Store (SHLD, M, JCP)

    According to a new report, department stores need to cut down on their physical locations to maximize their sales per square foot.
  6. Investing

    Why Wal-Mart Stores Inc's Latest Closures Matter Less Than You Think (WMT)

    Wal-Mart Stores Inc closed hundreds of stores in January 2016—a move which should reassure investors, not scare them away.
  7. Fundamental Analysis

    The 4 R's Of Investing In Retail

    In retail, successfully managing return on investment (ROI) and other financial indicators is the key to a healthy business.
  8. Investing

    Why Target's Express Store Concept is Flourishing (TGT)

    Target has found success with its TargetExpress store concept. Why are the small-sized stores so popular?
  9. Stock Analysis

    The World's Top 10 Retailers (WMT, COST)

    Read about some of the top retail companies in the world, and learn a little about the products they sell and the markets and customers they serve.
  10. Investing

    The Hardest Hit by Wal-Mart Store Closures (WMT)

    Wal-Mart Stores Inc's (WMT) store closures affected thousands of people aside from the 16,000 laid-off workers.
RELATED FAQS
  1. Who are Target's (TGT) main competitors?

    Learn more about the discount retailer Target and its competitors. Find out some of the things discount retailers do to increase ... Read Answer >>
  2. How do investors interpret the same store sales ratio when analyzing retail stocks?

    Examine the importance of the same-store sales ratio as a key equity evaluation metric utilized by investors interested in ... Read Answer >>
  3. Why is the strategy of 'always be closing' (ABC) popular in retail sales?

    Understand how the term ''always be closing'' is related to retail sales. Learn about the benefits and drawbacks of selling ... Read Answer >>
  4. What profit margin is usual for a company in the retail sector?

    Find out the typical profit margin for a major retail company, and learn how it compares to the profit margins for other ... Read Answer >>
  5. How has electronic retailing (e-tailing) changed the consumer discretionary goods ...

    Learn how electronic retailing has changed the consumer discretionary goods sector. Even physical stores are forced to invest ... Read Answer >>
  6. What are the most popular companies in the retail sector?

    Learn about some examples of popular companies in the retail sector. Understand what makes these retail companies popular ... Read Answer >>
Hot Definitions
  1. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center