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Wal-Mart Neighborhood Market An Upscale Supermarket on Main Street? Not a Deli. Posted on Thursday, November 04 @ 09:11:18 EST by jfbailey

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WPCNR Main Street Journal. By John F. Bailey. November 4, 2004: The announcement Wednesday that Wal-Mart is coming to Main Street and will offer a supermarket that, according to a spokesperson quoted by the Journal News this morning that “won’t be a full-blown SuperCenter, but it will provide for some milk, eggs deli-meats and some fruits and vegetables so people in town can have a quick place to pick up some of these items,” does not begin to describe what the market will be really like. 

 

If Wal-Mart is building a Wal-Mart Neighborhood Market, it will be a full-blown supermarket, open 24-hours a day, giving city convenience to the owners of $2 Million condominums in Trump Tower across the street.  WPCNR has also learned that it will be the flagship Neighborhood Market in the New York Metropolitan area, since there are no Neighborhood Markets listed within 100 miles of White Plains on the Wal-Mart website Store Finder.

 

The Neighborhood Market will underprice Stop N Shop, just opened two years ago, by about 10%  and definitely will underprice Whole Foods Market at Fortunoff.  The Wal-Mart market isn’t a “deli” operation, by any means, and is considerably larger than a gas station convenience store. 



Wal-Mart Neighborhood Markets are open 24 hours a day at 60 locations thoughout the country, and are Wal-Mart’s latest efforts to compete against a new retail sector: the food business.

 

As predicted by WPCNR in September as a good fit for the Sears building,  each Neighborhood Market is approximately 40,000 square feet, which would fit in nicely on the first 82,000 square foot first floor of the “The Shoppes on Main,” the "stackmall" next to City Hall, and upstairs, on the second 82,000 square foot second floor,  there could be the rest of Wal-Mart.

 

Wal-Mart’s Neighborhood Markets according to Baseline.com, the Tampa Bay Business Journal and usavanguard.com, are no Sam’s Clubs. In South Ogden, Utah the Neighborhood Market features wide aisles with luxury glazed brown floors, soothing, sophisticated muzak,  a drive-through pharmacy and a pizza-to-go stand.

 

In a visit to a Wal-Mart Neighborhood Market in Alabama, it was discovered by USA Vanguard reporter Michael Gregory that inside the Neighborhood Market were aisles and aisles of delights from cell phones to satellite systems, cosmetics supplies, school supplies, as well as an automotive section. Mr. Gregory reports the ability to get a key made, a prescription filled, even taxes done. You can read his article at http://www.usavanguard.com/vnews/display.v/ART/2004/01/02/402066c9235f5.

 

The model Neighborhood Market contains “amply-stocked” meat and deli sections, baked goods, and frozen foods. Neighborhood Markets are tied in by satellite to Wal-Mart’s retail link network to monitor what’s moving and what’s not, allowing trucks to deliver fresh stocks the next day. This economy of supply, according to Baseline.com allows Wal-Mart to offer prices 10% less than traditional supermarkets such as Publix, Winn-Dixie and Kash n’ Karry, Krogers, and Albertson’s.

 

The Baseline report also notes the Neighborhood Markets are operated with 10% less staff than grocery stores.

 

Baseline.com reports a typical Wal-Mart Neighborhood Market averages $19 Million a year in sales with a staff of 90 with a 2.3% profit margin significantly higher than average grocery-store profit margins, with $500,000 in profits per Neighborhood Market store. Baseline.com reports Wal-Mart crediting Neighborhood Market operations as more profitable per square foot than their SuperCenters.  The complete  Baseline article can be read at http://www.baselinemag.com/article2/0%2C1397%2C1522394%2C00.asp

 
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