For many college students, an August trip to a big box store in their hometown is a rite of passage. They collect the extra long sheets, laundry hampers, and decorative accents they are going to need in their first dorm room, then pack them up to make the big move. But retailers might have a way to make that process a little easier and less time constrained, by putting their product offerings on campus. Students don’t have to worry about showing up with everything they need, because the on-campus store has it right on hand.
Target is leading the push, with its announcement that approximately one-third of the new stores it plans to open in the coming year will be on college campuses. These stores will be much smaller than the massive, 130,000 square feet stores that consumers might be used to visiting in their suburban hometowns. The retailer also offers the option of ordering products online, then picking them up in the store, so parents and their college-bound students can select the needed items from home, then collect them once they arrive on campus to move into the dorm.
In addition to their smaller size, these stores will stock a more limited product assortment, curated precisely to reflect students’ needs. There will be a strong focus on electronic devices, laundry tools, bedding, and grab-and-go food offerings. Furthermore, the products will reflect local preferences, likely stocking more bathing suits for Florida colleges but cold weather tailgating gear for those in the Midwestern United States.
Speaking of Florida, the Publix grocery store chain already added an outlet to the University of South Florida’s massive Tampa campus. Although an existing store, less than two miles away, was readily accessible to students, that store sought to serve both students and more traditional families of shoppers. In contrast, the on-campus store is clearly and strongly dedicated to serving the needs of the approximately 2000 students who live in the same recently build residential village in which Publix leased the land for its store.
To gain support and loyalty for this store, Publix sought approval of its move from the student government at USF. Even if not binding, it aimed to communicate the importance it placed on students’ acceptance of a retail store in their dorm. In addition, it committed to holding at least two job fairs each year, to give students an easy route to short-term jobs in stores or perhaps longer term careers with the growing company.
Of course, retailers locating on campus is not a totally new concept; most universities have a book store—nearly 800 of which are run by Barnes & Noble. The stores give students easy access to their course texts but also sell gadgets, books for fun, and university gear. To ensure that it goes beyond being just the school’s bookstore, Barnes & Noble actively seeks out feedback from its student customers, through hundreds of thousands of surveys collected both in person and online. Such feedback has prompted several changes to the operations of these stores, including more frequent assortment turnover and the introduction of in-store hosted events to give students something fun to do.

Discussion Questions:

1. Why are retailers locating stores on or near college campuses?
2. How might retailers adjust their assortment to serve this market?

Source: Wayne D’Orio, Retail Dive, May 23, 2019