Walmart continues to expand small-format concepts

While some RetailWire panelists feel that Walmart is an oversaturated brand — no matter what they do — I disagree. I think the company has the potential to grow all three of its small-format ideas, depending on the specifics of the site and the individual real estate market. Here’s my commentary:

A recent profile of Walmart’s new CEO, Doug McMillon, drew the same conclusion about Walmart’s push toward smaller concepts. Rather than choosing one format, it’s easy to see where all three have “legs” depending on the neighborhood, site availability, competitive landscape and so forth.

As retailers struggle generally with big-box productivity and location saturation, it’s smart for Walmart to move in a completely different direction, especially in densely populated cities. At the same time, Walmart’s e-commerce business has plenty of room to grow. Both approaches should finally start to move the needle of U.S. sales over the next few years.

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