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Becoming Smaller to Get Bigger- A New Direction in Retail

by admin on October 21, 2013

Stores like Walmart and Target are known for their massive store layout and one stop bargain shopping. So it may seem surprising that these large chains are downsizing to better compete with smaller retailers like Dollar Tree, Dollar General and the Dollar Store. See a theme in these titles? Over the past few years these chains have started to reach into Walmart’s back pocket by expanding their product base. Stores you’d go to buy cheap knickknacks, candy and toys have now started selling things like groceries and clothing items. Any bargain shopper is drawn to a store with the word “Dollar” in the title. In Urban neighborhoods these stores are often in consumer’s back yard. Between the price point and distance they are very appealing.

These neighborhoods also tend to be cramped and over crowed so they can lack the development land a “Supercenter” may need.  A traditional Walmart Super Center is 180,000 square feet and the new “mini Walmarts” will be 15,000 to 40,000 square feet.

The mini-stores have been being tested over the past 3 years in select markets but now Walmart is planning an aggressive of over 200 new stores across the country in the next 18 months.

Walmart announced in early October to further the roll out they will be building 2 new fulfillment centers; in Fort Worth, TX and Bethlehem, PA. The 800,000 square feet Fort Worth Center brought 275 full time jobs to Texas.  The scheduled 1 million square-foot Bethlehem center scheduled to open in 2014 will be their largest fulfillment center.

 

For more information about the roll-out please visit:

Wal-Mart, Target Roll Out Smaller Urban Store Formats to Do Battle with Dollar, Drug Store Rivals

News.Walmart.com

 

 

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