Walmart (Bentonville, Ark.) announced plans last week to open a group of smaller stores, which “it hopes will win back shoppers” from competitors such as Dollar Tree and Dollar General. According to Forbes, Walmart also hopes the smaller footprint will help it grow in rural and urban locations where smaller markets or less real estate prohibit big box stores.
Company data supports the smaller footprint. Comparable sales at the company’s 400 smaller-format stores rose 5.6 percent compared to a year earlier, with shopper visits rising 4.1 percent. At the 3288 Walmart supercenters, comparable sales declined and traffic fell 1.1 percent.
Walmart is in the process of opening up to 300 new small stores, including roughly 90 Walmart Express stores, this fiscal year. At 40,000 square feet, Walmart Neighborhood Markets, with a focus on groceries, are about one-fifth the size of a Walmart Supercenters. Walmart Express stores, at about 12,000 square feet, are a convenience store concept offering items such as dairy and pharmacy products.