Wal-Mart Pulls Back On Neighborhood Market Plans

Sep 16, 2004
George Anderson

By George Anderson

Wal-Mart has decided to put off building more Neighborhood Markets in Colorado until it has gained greater penetration with its Supercenter concept, reports the Denver Post.

The announcement came when Wal-Mart chose to forego development of a 42,000-square-foot Neighborhood Market in Highland Garden Village.

The news was greeted by cheers from some in the community who had argued the Neighborhood Market “was too large and out of character with their neighborhood.”

Wal-Mart’s decision to pull back from building Neighborhood Markets does not appear to have any bearing on its overall plan for the format. The company plans to pursue Neighborhood Market construction in other states where Supercenters are more numerous. Wal-Mart currently operates 72 Neighborhood Markets and plans to open another 25 within the year.

Moderator’s Comment: What is your read of Wal-Mart’s decision to hold off for the time being on Neighborhood Markets in Colorado?

It’s clear from the decision that Neighborhood Markets are not a “stand-alone” concept. Wal-Mart sees the units as a means to corral business when consumers
have neither the time nor gumption to make the trek to the one of the chain’s Supercenters.

Wal-Mart said the decision to not pursue the property in Highland Garden Village had nothing to do with community protesters.
George Anderson – Moderator

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