Money Matters, Simplified.
Walmart Express to open in Arkansas on June 8
by Jamie Anderson - June 5, 2011 - comments
The latest format that will occupy merely 15, 000 square feet of space has been inspired by the success of Wal-Mart’s small stores in Brazil, Mexico and Argentina.
The first drugstore-sized Wal-Mart is on the anvil. Instead of the humungous structures that one normally associates with the retail chain, soon Wal-Mart will be seen in a relatively miniature form.
Termed as the Walmart Express, this small-store format is primarily being set up to serve markets in rural and urban areas which do not have any grocery stores nearby.
To compete with neighborhood grocery stores
The Bentonville, Arkansas based retailer already operates smaller stores which are called neighborhood market stores.
These stores operate from an area of 40,000 square feet vis-à-vis the typical superstores which occupy area as high as 100,000 square feet.
The latest format that will occupy merely 15, 000 square feet of space has been inspired by the success of Wal-Mart’s small stores in Brazil, Mexico and Argentina.
By the turn of the year, the world’s largest retailer by revenue will have 20 Express stores spread across the urban and rural markets of Arkansas, Chicago and North Carolina.
Thus, with its newest launch, Wal-Mart would be competing, not with supermarkets or hyper stores, but with the local grocery shops.
"We believe the concept has substantial opportunity to drive incremental sales. The key is finding a model with acceptable returns," analysts at Janney Capital Markets opined.
Small stores, big plans
The latest format would house product categories in consumables and general merchandise. A pharmacy would also be there in these stores.
“Small stores are going to be a very good growth opportunity for us because they allow us to get access in places we are not in today,” William S. Simon, president and chief executive of Wal-Mart's domestic business was quoted as saying in the New York Times.
“We have a pretty aggressive plan to build” these stores revealed Simon. The first prototype store is set to open next week in Gentry, Arkansas. Two express stores are scheduled to open in Chicago later this summer.
By the turn of the year, the world’s largest retailer by revenue will have 20 Express stores spread across the urban and rural markets of Arkansas, Chicago and North Carolina.
As on date, Wal-Mart is the largest grocery retailer in the United States. It operates 8,500 stores in 15 countries worldwide.