Walmart Express Photo Tour By Natalie Berg and Katie Mathis Planet Retail Ltd | July 2011 Walmart Express Photo Tour Natalie Berg Katie Mathis Global Research Director US Retail Analyst natalie.berg@planetretail.net katie.mathis@planetretail.net Walmart has opened its first urban small-box store at a site in Chicago. The urban debut follows the June launch of the Walmart Express format in Gentry, Arkansas and is part of Walmart’s commitment to open smaller stores in food deserts across the US. In this short presentation, we take a closer look at the key features of the Express concept. 2 All images ©Planet Retail Ltd unless otherwise stated. Walmart Express Photo Tour Walmart Express, Chicago floor plan. Fresh Beverages Ambient Baby Health & Beauty Care Pet Household Frozen Chilled 3 Walmart Express Photo Tour Serving the underserved. The shift to small-box comes at a time when the company’s larger Supercenters are underperforming and nearing saturation. Planet Retail predicts Walmart has one decade of growth left with this format. Going small enables Walmart to combat the ever-growing threat of dollar stores and reach new consumers in urban areas. Staying true to its motto of ‘saving people money so they can live better’, Walmart is pursuing America’s food deserts in a bid to bring consumers affordable food, health care and, increasingly, financial services. Walmart plans to open 275-300 stores in food deserts over the next five years as part of First Lady Michelle Obama’s effort to bring fresh foods to impoverished neighbourhoods. Supercenters are still the preferred entry vehicle but Walmart Express and Market give the retailer greater flexibility now. 4 Walmart Express Photo Tour Urban versus rural. Walmart is using a different fascia for its Chicago Express stores (left) compared to rural locations which debuted in June with the Gentry, Arkansas outlet (right). Testing with and without gas stations/pharmacy/parking lots depending on location. Unlikely to roll out in a major way until the concept has been thoroughly tried and tested. Urban consumers more likely to utilise site to store over rural consumers, particularly in markets without a Supercenter presence. 5