Analysis of the ForecastIQ predicts certain large retailers to experience an increase in same store sales over the summer, but not an increase in profits, while other retailers are downsizing to reach new clients.

The ForecastIQ found that consumer confidence is down, while expectations remain high for paying more for apparel such as denim and fashion tops.

Retailers including Nordstrom, Old Navy, and Victoria’s Secret are predicted to certainly increase their same store sales over the summer, while stores such as Gap are less likely to increase.

But some large retailers are adjusting their large presence to become more flexible in the market. Companies such as Wal-Mart and Best Buy are abandoning their supercenter stores for more practical shops to reach target audiences.

Wal-Mart has developed Express stores which are smaller than regular Wal-Marts, catering to rural areas that cannot support the larger store and urban areas with limited space. Rivals of Wal-Mart including Target have begun building smaller stores as well to tap into this new customer base.

Best Buy is downsizing its already existing stores to reduce overhead costs, and plans to build smaller stores over the next few years. The retailer wants to focus on the ever-growing mobile device market, a much more specific customer base.

The scaling down of these larger retailers could be in response to a change in consumer sentiment towards big business. While the new, smaller versions of these large retailers will be direct competition for small business, it could show a shift in the way consumers want to shop, a good sign for entrepreneurs.

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