Walmart says its smaller-format stores are gaining market share against dollar stores, supermarkets, and pharmacies and will therefore play an increasingly significant role in the company’s future, the Wall Street Journal reports.
“You’ll see us increasingly moving into smaller formats,” said Bill Simon, head of Wal-Mart’s U.S. division, at an industry conference Tuesday. “They compete really well against multiple channels.” Simon said the smaller-format stores—which feature fresh food, general merchandise, a pharmacy, and online offerings—provide a full selection of products and services that some competitors lack. “We can deliver price, assortment, fresh food, and Rx,” he added.
Walmart will open about 115 of its smaller format (sub-60,000-square-feet) stores this fiscal year, with Neighborhood Market and Express locations accounting for roughly 40% of the company’s store openings. Although Walmart is ramping up the smaller format, it remains a small part of the company’s retail fleet, with roughly 90% of the retailer’s store count comprised of supercenters and large stores. (NACS: www.nacsonline.com)