Wal-Mart Looking to Fill New Niches -Wal-Mart Looking to Fill New Niches
According to a Wall Street Journal report, Wal-Mart is in the process of developing new concept stores it plans to roll out next year.
The new formats include a smaller convenience store (20,000 square-feet or less) in urban locations that focus on more affluent consumers. The other format being readied for test is a standalone larger format that is focused on health-related services and products.
David Wild, senior vice president of new business development at Wal-Mart, is said to be behind the new formats. When Mr. Wild, a former international managing director of Tesco, was hired by Wal-Mart, many believed it signaled the company's intention of rolling out its own convenience store business.
An upscale convenience format being introduced would serve a few purposes for Wal-Mart. It would enable the chain to build stores in areas where space is limited and opposition to large supercenters is high.
The healthcare store format would reportedly offer services such as pharmacy, eye care, and home-health equipment. A person said to be familiar with the retailer's plans said, "In five years, Wal-Mart wants to be on its way to becoming the No. 1 health-care company in America."
Mr. Wild did not comment for The Journal piece, but an unidentified spokesperson said, "Our business is constantly evolving, and we're always looking for new and innovative ways to serve our customers."
Wal-Mart is also looking to attract new shoppers and the new formats, particularly the upscale convenience concept, are an attempt by the company to crack the affluent consumer code.
Greg Melich, a retail analyst at Morgan Stanley, told The Journal, "In the Northeast Corridor, California and Chicago you have 33 percent of U.S. income and retail sales. Yet these areas account for 10 percent of [Wal-Mart] stores and less than two percent of their supercenters Retail News.
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