Analyst Insight by Jared Koerten, Senior Research Analyst, Euromonitor International
In April 2013, Home Improvement retailer Menards Inc plans to open new stores in St. Peters, Missouri and O’Fallon, Illinois – both of which are in the St. Louis area. The unique feature of these new stores is their incredible size, with each outlet expected to surpass more than 18,500 square metres of shopping space. For reference, the average outlet size of leading Home Improvement retailers Home Depot and Lowe's were only 10,500 and 9,800 square metres, respectively, in 2012. In fact, even Walmart Supercenter – the hypermarket viewed as the epitome of a large-format retailer – averaged an outlet size of only 17,000 square metres in 2012.
These are not the first mega-stores that Menards Inc has opened. In 2011, the company reopened a store in Eden Prairie, Minnesota that measured over 21,800 square metres and stocked a range of grocery, healthcare, jewellery, toys, and apparel products. The company followed in 2012 by introducing a mammoth store in Golden Valley, Minnesota that topped 23,200 square metres.