Stores Begin Shrinking, in an Effort to Grow

Larger stores are developing new models to profit -- they're slowly building out a greater number of smaller stores and becoming increasingly relevant with consumers in the process. Best Buy is adding Best Buy Mobile locations, Target is moving into smaller urban city-center locations, and Wal-Martis experimenting with its express stores -- so shareholders should be careful to pay attention to how these large chains are branching out and decide whether to invest based on case-by-case scenarios. The real winners will most likely be retailers that can bundle great value with repeat purchases.

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Andrew Tonner and Austin Smith have no positions in the stocks mentioned above. The Motley Fool owns shares of Best Buy and RadioShack. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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