UPDATE: News for Wal-Mart Express: smaller format may help Walmart combat 2 year same store sales declines.A First Look at Walmart Express.
Wal-Mart Stores Inc.'s first convenience store-sized Walmart Express opened in Gentry, AR and offers a peek at how the world's largest retailer plans to expand in big cities and small towns.
Wal-Mart plans to open its first Wal-Mart Express Stores. Walmart Is Creating Express Stores to Solve Shoppers Convenience Gap. Guess that means size does matter? Well, not the way you think!
Wal-Mart Stores Inc. plans to open its first Wal-Mart Express store on Chicago's South Side. They are also rolling out the "Express" store format in their backyard, Prairie Grove, Gravette and Gentry Arkansas.
Wal-Mart is experiencing what we call a "convenience gap"… the stores are huge and when we humorously relate to "size matters" in Wal-Mart's case, the mass merchant size, your typical Wal-Mart or Supercenter size (the combo Wal-Mart + supermarket), ranging from 100,000 sq ft to over 150,000 sq. ft pushes them to locating in areas that are not very convenient to get to. If you couple that with the potential of $4/gallon gasoline, the convenience gap is tangible.
Wal-Mart is in a major slump, reported The Wall Street Journal. It tried to compete with Targets "cheap-chic" instead of focusing on it's core value to the consumer: Every Day Low Prices.
Even their arch rival Target will open a Small-Format Stores in Chicago with a grand kickoff in the Windy City . Wal-Mart can't catch a break!
Wal-Mart lost focus on it's core customer bases… U.S. households earning less than $70,000 a year--which made up 68% of its domestic business. .
Food is everywhere, and strong competitors are dollar stores, box stores such as Aldi and drugstores such as CVS and Walgreens. In fact Walgreens is relocating legacy stores to new retail locations to accommodate their new emphasis on food and…yes… fresh foods.
Customer Growth Partners published some new research that is illustrating trends that point to growth in smaller format stores.
We don't need research to tell us that we are changing our shopping behavior as we become more "time starved. The food industry looks at our shopping trips in two ways. "Pantry-loading" is where we spend over an hour shopping stocking up on a foods that are on sale at great deals, like the "10 for $10" promotions we all have seen.
CVS, Walgreens and dollar stores are merchandising more foods to appeal to what the food industry calls "fill-in trips"… running into a store and grabbing a few items on our way home from home from work. A new term, "Mission Shoppers" go out with a very tight list, ignoring impulse purchases and only focusing on a few items they want to buy.
Crain's Real Estate Daily explains that a Wal-Mart Express store will be a 10,000-square-foot store located, with having a focus on food, will be near a 150,000-square-foot Walmart Supercenter, just a few blocks way.