Bigger is not always better


When people think of Walmart, they usually visualize a big box store that sells almost anything they can think of. From school supplies, to chips, to detergent, and even to patio furniture. However, recently Walmart opened a smaller version: Walmart Express in a dense Toronto suburb. Walmart plans to add 115 new outlets all with less than 60,000 square feet this year.  This sudden shift in strategy aims to better able to cater to a specific demographic and community. For example, there is not a big demand for gardening tools and outdoor equipment in high-rise housing areas, so why carry it? These small stores allow Walmart to cut down on operating costs and capital investment while still appealing to specific demographics. The smaller stores focus on stocking  specific prepared food, produce, wine and other groceries making it more convenient for shoppers. I think this move from Walmart is a good idea because it gives the customers an option of picking between the big box stores or the express ones depending on the needs of customers. This targets a greater market while still realizing economies of scale as Walmart may now be a threat to existing smaller stored companies such as Zellers, Safe Way, Save on Foods etc.




Leave a Reply

Your email address will not be published. Required fields are marked *

Spam prevention powered by Akismet