Between 2010 and 2012, the mass merchandisers channel declined nearly 3 percent, according to data from Euromonitor International, Chicago. However, the decline can be attributed to evolutions within the channel, such as an increasing focus on grocery and urban sprawl, which is transforming many traditional mass merchandisers into other store formats.

For instance, Bentonville, Ark.-based Wal-Mart Stores Inc. has converted many of its stores from mass merchandisers to hypermarkets — a supercenter that combines a supermarket and department store — by adding more space for groceries, says David McGoldrick, research associate with Euromonitor.