Walmart's Small Format Making a Big Impression

Walmart said it is gaining market share from dollar stores, supermarkets and pharmacies with its smaller format stores, which will play an increasingly significant role in its future.

March 07, 2013

NEW YORK - Walmart said its smaller-format stores are gaining market share against dollar stores, supermarkets and pharmacies and as such, will 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."

Walmart will open about 115 of its smaller format (sub-60,000-square-feet) stores this fiscal year, with the Neighborhood Market and Express locations accounting for roughly 40% of the company??s store openings. "It's a rapid ramp-up," Simon said.

Simon said that the smaller-format stores, which feature fresh food, general merchandise, a pharmacy and online offerings, provide a full selection of products and services that competitors lack. "We can deliver price, and assortment and fresh food and Rx," he said.

While 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.

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