Dive Brief:

• Meijer has opened its third small-format store in Michigan, according to a company press release. Capital City Market debuted Wednesday as one of the first downtown grocery stores in Lansing, Michigan.
• The store offers a mix of fresh, local and convenient foods including bakery items, fresh meat and deli and an assortment of private label products and national brands. The store will also include about 3,000 items from local artisans, a full-service coffee and espresso bar and a wine, beer and liquor counter.
• The new Capital City Market spans 37,000 square feet and features open air elements — a design that gives a nod to the local culture — and a colorful mural by a local artist. Six garage-style doors can open to outdoor produce and floral sections during warmer seasons.

Dive Insight:

Meijer’s move into downtown Lansing fills a major need for the area, which has seen high demand for fresh, local affordable food for years, a local developer said in the announcement. 

The retailer has been slow and steady in executing its small-format strategy, previously saying it plans to open a total of six by next year. Meijer has been deliberate in choosing urban neighborhoods for each store and has followed a similar open-air, market-style format for each with a focus on fresh and local assortment. 

Its first small-format store, Bridge Street Market, opened in Grand Rapids, Michigan, in 2018. Its second store, Woodward Corner Market, opened in the Royal Oak neighborhood of Detroit at the beginning of this year.

Meijer’s typical store footprint follows the big box model, stocking multiple departments and covering around 200,000 square feet. Previously, experts have noted the smaller stores are an opportunity for the company to connect with younger, urban consumers. They're also part of Meijer's ongoing grocery investments, which includes an expanding fresh assortment at its supercenters as well as a strategic funding arrangement with Fresh Thyme Market.

More retailers have pursued the small-format strategy recently in an attempt to be flexible and offer more experienced-based shopping for customers. It’s also a cost-effective way to expand into otherwise expensive real estate. Target said in March it plans to open three dozen more small-format stores, following the opening of its 100th small-format store in 2019. Publix is reportedly exploring new locations for its small-store concept, Greenwise Market, which currently has seven locations operating in three states.