Krispy Kreme Tests Three Formats in Wal-Mart

Discussion
Sep 11, 2003
George Anderson

By George Anderson


Krispy Kreme plans to open and test three different store formats in Wal-Mart stores and supercenters, reports the Associated Press.


The doughnut maker intends to open one of its factory stores, the format that produces hot donuts in front of customers at a supercenter in Mt. Airy, NC.


The unit will have a smaller footprint than Krispy Kreme’s standard factory store as seating will be eliminated within the Wal-Mart location.


Krispy Kreme is also planning to test its “doughnut and coffee shop” which deliver hot doughnuts and coffee but are smaller than the factory stores. The shops will be inside
Wal-Mart Division One stores in Virginia Beach, Va., and Scottsburg, Ind.


The third concept to be tested is Krispy’ Kreme’s “fresh shops,” which have doughnuts delivered to them on a daily basis. The test sites will be within Wal-Mart stores in Seymour,
IN, and Christiansburg, VA.


Moderator’s Comment: What are your thoughts on the Krispy Kreme/Wal-Mart test?


Prediction: Krispy Kreme’s business in the Wal-Mart stores will be so good it will seem as if it is printing its own money.


Although we often view these branded stores within a store as doing little to add to the big box’s brand, in this instance, Wal-Mart and Krispy Kreme each
have such strong and differentiated brands that our concerns are eliminated.
[George
Anderson – Moderator
]

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