Walmart add small stores to rural areas, some will only be 30,000 square feet and targeted for small towns.
Walmart add small stores to rural areas. Retail chain Wal-Mart Stores Inc. will enter densely populated urban areas with less square feet. Most of the Walmart stores will be smaller than normal floor plans.
Most of the new stores will be larger than 60,000 square feet. But Wal-Mart plans for 30 to 40 of its 185-205 new U.S. discount stores to be smaller than that. Some will be less than 30,000-square feet and will be targeted at urban areas and small towns.
Both Wal-Mart and rival discounter Target Corporation are trying out smaller store formats. Analysts have been concerned about Wal-Mart spending money on new stores while sales at existing stores have stagnated. “The fact that a significant number of planned new stores will be medium- or small-sized stores and not the large super centers helps to ease some (but not all) of our concern about accelerating store openings at a time when comp-store sales are soft,” Edward Jones analyst Matt Arnold said in a statement.
Wal-Mart would not say how many of the smallest stores would be opened in 2012 and the company is also still determining what the stores will look like. The world’s biggest retailer expects to keep capital spending in the United States flat in the fiscal year that begins February 1, 2011, at $7.5 billion to $8.0 billion as it shifts spending from remodeling existing units to building new stores.