Wal-Mart (NYSE: WMT) has a new division and it expects the world from it. The company will launch its new small Marketside grocery stores this Fall. Job postings uncovered by the FT indicate that the world's largest retailer expects sales from the chain to eventually hit $10 billion with 1,000 stores in operation.
Wal-Mart insists that the new stores are simply a pilot project, but it is not likely that Wal-Mart would think small. For any new chain to help the company's revenue, sales would have to be very significant.
The new business may face rough going. Big chains like Kroger (NYSE:KR) and Safeway (NYSE:SWY) are likely to fight Wal-Mart every step of the way.
Wal-Mart was the first company into the big box discount retail business. The company was not only remarkably well-run under Sam Walton. It also had the advantage of being the "first mover" In the grocery business; being late to market is a handicap.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 6)
8-08-2008 @ 9:35AM
Thomas Banks said...
Walmart was far from the first big-box retailer. I am not sure who was first, but Kresege (Kmart) was the first national company with large numbers of big-box stores. Their first national wave of discount stores contained 80,000 square feet. Those 80,000 square foot stores contained 18,000 square feet of grocery space.
Kmart probably had several hundred of those 80,000 square foot stores when Sam Walton started his company. Sam's first stores were small (10 to 20,000 square feet). Wal Mart's large stores came many years later.
8-08-2008 @ 7:24PM
Vinny said...
We all bitch about Wal-Mart but I shop there because I can't find a store that even comes close to their prices on most everything.
My local Wal-Mart is open 24 hours and the array of goods and food items are unbeatable. Their stores are not fancy but they are always clean with prices clearly marked. Maybe they don't do everything right but for me they are doing just fine. There are huge chain stores closer to me but their prices are often 20 -30% higher than Wal-Mart. Lets face it, without Wal-Mart it would be open season on all of us right now.
8-08-2008 @ 8:10PM
Bryan Lasater said...
Dude...please come to Philadelphia! ACME is a joke!!! They charge twice the price for rotten meat and vegetables. It's like a company store around here...please help!!!
8-08-2008 @ 8:16PM
Joe said...
I really dislike Wal-Mart to an extreme. I used to shop there all the time but got fed up with junk merchandise. Battery charger that was dead on arrival, power strips that shorted out, markers and pens with no ink in them, a toilet seat that broke in half after 1 day. They press their suppliers so hard on price that they cannot supply a quality product and the last time I returned something I was one of 25 in line with only 1 clerk, (who was in slow motion) doing returns. I threw the item in the rubbish and swore off Wal-mart.
8-08-2008 @ 8:31PM
eillah844 said...
wonder if its a whole foods store for once? maybe there will be one in my town!
8-08-2008 @ 8:45PM
Pauline said...
There has been a small WALMART grocery store on the north side of Phoenix for at least two years. They have been test marketing them for a while. Just what we need, more darn Walmarts.
There was a huge store in Phoenix 40 years ago, caleed GEMCO. I loved it. They carried good quality merchandise at reasonable prices. Walmarts merchandise is usually not so good. At least when Sam Walton was alive, he had a conscience about what he was selling to us. Todays Walmart doesn't give a darn about quality and the American people. It is simply about profit!!!
8-08-2008 @ 8:33PM
solomeeeo said...
CLEAN.......WALMART????? I have NEVER seen a clean Walmart???
8-08-2008 @ 8:48PM
hookmrl said...
yea china mart has such a monoply this is why other small family owned stores are going out of business china would not be around except for U S I nevr shop there if you find sale some where else I buy there walmart china mart they suck
8-08-2008 @ 8:57PM
Kathe said...
I never shop there. Haven't for several years. I won't ever again. It is plain what kind of shoddy merchandise is offered, mostly chinese, against the original philosphy of its founder. The shameful way their workforce is treated is something quite dispicable. Putting how to get foodstamps info in the breakrooms for their staff. Being fined by the US government for illegal practices regarding their knowing hiring of illegal immigrants and locking the immigrants in their stores at night so they can't leave. It is uncanny how they manage to locate their stores in the most dangerous intersections they can find. They have used unethical business practices to run Mom and Pop stores in rural areas out of business. For what, low Prices? What low prices? You might save a quarter on a small item and a few dollars on the more expensive? What message does it send to shop in such a place?
8-08-2008 @ 8:54PM
grg8h said...
I remember years ago when Circuit City told me that they wouldn't hire me because I was "TO HONEST". I told them that I wouldn't work for them because they were "TO CROOKED"! Glad to see them in trouble. I hope they lose it all!
8-08-2008 @ 8:55PM
metskate said...
I moved from So. Cal. to the Dallas Texas area three ago where I discovered Walmart Super Stores. I can say in all honesty that their stores are clean, well stocked, with prices clearly marked. And most of all, the prices at Walmart compared with other large chain grocery stores, such as Kroger, Safeway (Tom Thumb) and Albertson's, Walmart is the clear winner by far! Prices, availability, cleanliness, and dependability are key words at Walmart. When I returned for a vist to So. Cal, I found prices in chain grocery stores higher on all items, from produce to staples. I'm for Walmart!
8-08-2008 @ 8:59PM
grg8h said...
I am totally disabled with heart disease and at Walmart the other day, they had hardly any handicapped parking and no amigo's for me to shop with. I had to walk from one front door down to the other only to find out there were no amigo's. I left the store and don't plan on going back since they refuse to accomodate the handicapped!
8-08-2008 @ 9:03PM
Tigerlily said...
I hate KMart. I'll take Walmart anyday over anything that is even affiliated with KMart. The one near my house is filled with the rudest people you will ever meet. They're shockingly rude and I'm not the only one who has complained. But they don't give a rats behind about the customer. Then they say, call this number, tell me how we did...LOL After the 3rd time of being told off by one of their pathetic employees I TOLD THEM!
8-08-2008 @ 9:03PM
Jackiee said...
Walmart is huge monopoly!! I will never shop there and neither should any other American. If one has to pay 30%-40% more, than ask yourself why?
WALMART carries junk merchandise and low prices. Read your history monopolies are not good for anyone.
8-08-2008 @ 9:09PM
LAL said...
I NEVER SEEN A CLEAN WAL-MART WITH GOOD PRODUCTS AND SERVICE SINCE 1989. WAL-MART IS NOT LIKE WHEN IT FIRST OPENED IT ONLY SOLD AMERICAN MADE PRODUCTS PER SAM . NOW THE GREEDY TEENY BOPPERS OF THE FUTURE ARE RUNNING IT AND ALL THE STORES OUT THERE . GOD HELP US ALL WITH THESES YOUNG MONEY GRUBBERS WITH NO VALUES AND COULD CARE LESS ABOUT T6HERE ELDERS ARE ENVIRONMENT.
8-08-2008 @ 9:13PM
John said...
When Sam Walton was alive he was a proud man, proud to say made in USA.Today is China west.....what are they going to do....import all thier grocerys from chiina for thier pilot project
8-08-2008 @ 9:18PM
conwayg said...
Joe I think that you are a Wal-mart hater and part of a group that likes to make up stories to make Wal-Mart look bad. There is no way that you have had all that happen to you. The "junk" merchandise that you refer to are all national brands that have stood the test of time...it is the anti Wal-Mart people such as yourself that state such outlandish statements. We all have had gone to chain stores and had to return merchandise because something was wrong, but that is because the product was bad. To hold Wal-Mart responsibe for all manufacturing defects is insane. I am for one tired of all this crap and if you don't like Wal-Mart, just don't shop there.....go else where and try to get the most for your hard earned dollar!
8-08-2008 @ 9:23PM
T.S. said...
It's so funny anytime Walmart is mentioned so many people claim they don't shop there,but with as big as they are and the business they get you know these people are closet Walmart shoppers....lol.
I shop there it saves me money,only a fool would pay more for the exact item elsewhere.
8-08-2008 @ 10:35PM
Tweety3g said...
hey Jackiee, look up the word 'monopoly' as you dont seem to understand what the term really means. Wal-Mart is not a monopoly, but just a very large and successful company
8-08-2008 @ 10:13PM
Colette Lover said...
Our WalMart is expanding so they closed 3 small businesses within the store and those employees lost their jobs. In order to pay for their expansion, they cut the hours of their full time employees to part time. What a great place to work. I hate WalMart. They have junk merchandise and am tired of supporting everything that comes out of China.