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www.IndependentRetailer.com NEWS Walmart Express Stores
AS WALMART is running out of locations for its big shopping centers, and running out of ideas to boost its declining rev- enue, the company is looking to roll out a nationwide implemen- tation of small express stores. These 15,000 square-foot ex- press convenience stores will allow Walmart to enter urban markets, as well as some ru- ral towns. For those discount stores thriving post-recession with added brand name prod- ucts and competitive pricing, Walmart’s plan for 350 of these smaller stores threatens a warring front in customer sales. The fi rst of these stores opened in June, and Walmart has planned the opening of 15 Express stores this year in Ar- kansas, North Carolina and the Chicago Area. Walmart recently encoun-
tered one of the longest slides in domestic same store sales in its retail history. The Wall Street Journal confi rms, say- ing, “Walmart’s U.S. business, which accounts for 62 percent of
its $419 billion in annual
revenue, has reported declin- ing sales at stores open at least a year, for two consecu- tive years.” Analysts believe the smaller stores could help Walmart compete with dollar stores, which have been a big hit in the weak economy. Ac- cording to MSNBC, “They could also pose a competitive threat to pharmacy chains and local
mom and pop shops that have traditionally received business where a Walmart box store did not rule.” While some retailers fear the
big box store stepping on their turf, it doesn’t go unnoticed that the large retailer won’t be without its struggles during the transition. While easier than fi nding a location for another Super Center, Walmart is still faced with the challenge of fi nd- ing locations for all 350 stores. The greatest challenge, howev- er, will be product selection. As Patty Edwards, chief investment
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