How to: Compress Snapshot Files (SQL Server Management Studio)
Specify that files should be compressed on the Snapshot page of the Publication Properties - <Publication> dialog box. For more information about accessing this dialog box, see How to: View and Modify Publication and Article Properties (SQL Server Management Studio).
To compress snapshot files
On the Snapshot page of the Publication Properties - <Publication> dialog box:
Select Put files in the following folder, and then click Browse to navigate to a directory, or enter the path to the directory in which the snapshot files should be stored.
The Snapshot Agent must have write permissions for the directory you specify, and the Distribution Agent or Merge Agent must have read permissions. If pull subscriptions are used, you must specify a shared directory as a universal naming convention (UNC) path, such as \\computername\snapshot. For more information, see Securing the Snapshot Folder
Clear Put files in the default folder unless you require snapshot files to be written to both locations.
If this check box is selected, the files stored in the default folder are not compressed. Compressed files can only be stored in the alternate location specified in the previous step.
Select Compress snapshot files in this folder.