Wal-Mart Express landing near a Walgreens by you?


A new Wal-Mart Express will open in Columbia, Missouri this week just across the campus from the University of Missouri. The college town is a slightly different market than Wal-Mart (WMT) has targeted previously with its new small-store concept.

The quick-stop shopping outlet will have a pharmacy and sell fresh produce in its grocery section.

The store's placement and tight space (3.7K!) could be an eye-opener for Walgreen (WAG), CVS Caremark (CVS), and Rite Aid (RAD), notes retail analyst Brian Sozzi.

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Comments (7)
  • chopchop0
    , contributor
    Comments (5268) | Send Message
     
    Solid strategy. Their express and neighborhood market store concepts are providing a great push against traditional grocers and drugstores/dollar stores, respectively. Between this and Sam's Club, I am very bullish on WMT and kick myself for not adding more in the 40s and 50s when I had the chance.

     

    Long WMT
    3 Jan 2014, 08:43 AM Reply Like
  • blackbart10
    , contributor
    Comments (10) | Send Message
     
    This is at least the third location for a Walmart express of this format. The first was at University of Arkansas and another at Georgia Tech. If Walgreens or CVS has not had their Competitive Teams in there dissecting these locations, they are missing the boat.
    3 Jan 2014, 09:11 AM Reply Like
  • positivethoughts
    , contributor
    Comments (2065) | Send Message
     
    I had a store that was 2775 square feet. And it was small. For Walmart to go that small - 3700 square feet - is astonishing!

     

    I think they are going underneath Walgreens in terms of focusing on such a small size. I would guess that the average Walgreens is around 12,000 square feet, so by focusing on micro retail, Walmart Express is basically going after the convenience store segment of the retail market.

     

    Will be very interesting to watch Walmart grow in this regard. I bought in at $52.33 and will hold it until the world comes to an end, or at least until the government tries to implode everything. How will the new 'savings tax' - IMF, affect Walmart going forward?
    3 Jan 2014, 09:43 AM Reply Like
  • satyr
    , contributor
    Comments (1772) | Send Message
     
    I think for WMT, these are experiments. They have been trying the small format for a while, and this is yet another incarnation. Walmart is a very conservative company, and they are not going to roll out a concept like this en masse any time soon. If it works for them, then there will be more. Of course, there are really only so many locations that can work with this small of a footprint. A pharmacy really needs a successful front-end to make the store viable, and that is why Walgreens and others prefer to operate at 10,000 to 14,000 square feet.
    3 Jan 2014, 11:55 AM Reply Like
  • User 10151111
    , contributor
    Comment (1) | Send Message
     
    Walgreens has been testing these college style stores for over a year now (not including the stores they already have on campuses). The newest location opened in August and is located on the campus of the University of Minnesota. The stores are 1/3 the size of a traditional drug store and are called "Corner W". These stores also carry fresh produce.
    4 Jan 2014, 02:00 AM Reply Like
  • tenspeedr
    , contributor
    Comments (3) | Send Message
     
    Wak-Mart best be looking within while trying to grow their business. As a former "associate" having worked there 20 plus years, the people I know on the inside say Wal-mart has become a worse place to work than when I left. My reason for leaving was they had turned to job into the very worst job I ever worked.

     

    Good luck investors and you people looking to make a buck from Wal-Mart. Seems we went through about a ten year period where the stock didn't move anyway but down. I hope this doesn't catch you. It ruined any chance I had at a comfortable retirement.
    5 Jan 2014, 12:59 AM Reply Like
  • chopchop0
    , contributor
    Comments (5268) | Send Message
     
    "Seems we went through about a ten year period where the stock didn't move anyway but down. I hope this doesn't catch you. It ruined any chance I had at a comfortable retirement."

     

    Same thing happened to KO after the 2000 bubble. In both WMT and KO's case, the stocks were overvalued and then reverted back to a more reasonable valuation. Had nothing to do with the company
    5 Jan 2014, 12:14 PM Reply Like
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