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Wal-Mart's new Supermercado concept could be huge

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Recession or not, Wal-Mart Stores, Inc. (NYSE: WMT) is pushing ahead. Its latest innovation: Hispanic-themed retail locations called Supermercado de Walmart.

The world's largest retailer opened a new Supermercado in Houston in April and just launched one in Phoenix as well. It's no surprise Wal-Mart is focusing on the Southwest with this new strategy, given the region's heavy concentration of Hispanic shoppers.

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This is a brilliant move by Wal-Mart, and a sign that the melting pot that is America is becoming even more intense. The Hispanic population is growing rapidly in the U.S., making for one heckuva' opportunity for retailers.

This is another indication that Wal-Mart is paying close attention to demographic trends. It won't be easy, though, as both Houston and Phoenix are already saturated with grocery stores -- but don't count out a Hispanic-themed grocery store from a household name. Wal-Mart has the power and influence to take market share away from entrenched rivals, and do so quickly.

So let the price wars begin between these Supermercado locations and the competition. Hundreds of new Supermercado locations are possible, although Wal-Mart's supply chain might need a little tweaking to ensure Hispanic-specific goods are widely distributed -- and at the lowest prices.

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Last updated: November 21, 2009: 09:02 AM

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