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Small is huge. Lowe’s, Trader Joe’s, Home Depot, Bissell and others are shrinking their products and selling them at irresistible price points, Bloomberg reports. It’s a trendy strategy Lowe’s calls the “mini effect,” a twist on the old “lipstick effect” theory that consumers avoid big spending in tough times but will open their wallets for smaller treats.
The strategy is working in ways retailers didn’t expect. Lowe’s mini bucket, a 0.4-quart version of its standard blue pail, sells for under $2. But customers who come in for the bucket leave with mulch, flowers, faucets and appliances. Bissell’s Little Green Mini carpet cleaner made up 10% of U.S. sales last quarter while introducing new customers to the brand. And Trader Joe’s miniature totes have become a fashionable status symbol rather than a practical grocery bag.
This isn’t shrinkflation — the products are openly smaller and priced accordingly. It’s a new category entirely, built for an economy where, as one shopper put it, “you don’t feel guilty for buying it because of the price tag.”