Wal-Mart pins growth hopes on small-format Express stores
CHICAGO — Wal-Mart Stores’ urban expansion has won at least one convert in Chicago schoolteacher Rachel Green.Green, 54, said she’s visited Wal-Mart’s new Express store at least seven times since it opened July 27 in the West Chatham neighborhood on Chicago’s South Side. Because she lives across the street, the Express store is very convenient, and the prices are “extremely right,” Green said.
“A lot of people from all around come to this store,” Green said Aug. 15 in the Express parking lot while toting two small bags of groceries she’d just purchased inside.
The store’s overall selection isn’t sufficient — “just the basics,” Green said. “But if I need an extra head of lettuce or some carrots, I can just come here.”.
Wal-Mart aims to add thousands customers more like Green in coming years as the world’s biggest retailer ramps up store openings in large U.S. cities, where it has relatively little presence compared to its core rural and suburban markets. Wal-Mart Express is part of a handful of small-store formats the company is increasingly emphasizing amid languishing sales at its traditional supercenters.
At about 10,000 square feet, Express stores are one-tenth of the size of a typical supercenter, with food items comprising about two-thirds of inventory. West Chatham’s is Wal-Mart’s first big-city Express store, with three other pilot locations in northwest Arkansas, where the company is based.
“We’re very pleased with the opening of the first four Wal-Mart Express units, and the initial results are positive,” Bill Simon, chief executive of Wal-Mart’s U.S. operations, said during a conference call released Aug. 17 along with quarterly financial results.
In Chicago, Wal-Mart plans to open another eight stores, in small formats as well as supercenters, by spring 2013, the company said in a news release. Those include a supercenter in West Chatham.
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Walmart appeared to be the best option they had. As they got off the bus in the Walmart parking lot, the Lady Bears received standing ovations from people in the parking lot and in the aisles of the store. The team ate in the store's McDonald's,
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