pseudo3d wrote:cathandler wrote:Walmart also looked into putting the Neighborhood Market format in New Jersey but abandoned the idea. I think Walmart has figured out that the grocery sector is so overstored in the Northeast that a dedicated grocery format isn't going to produce the kind of return they expect of their stores. That said, I don't think the Neighborhood Market format itself is headed for extinction.
Neighborhood Market does well in some markets and poorly in others. In Dallas it did well, paving the way for future Supercenters and absorbing former Albertsons stores as the chain shrank, but in Houston it never gained traction (I don't think they ever had more than half a dozen) and wasn't nearly as successful. The heavily unionized area probably make it difficult to compete as well.
Walmart has been rolling out the Neighborhood Markets around the Portland, Oregon area as well, an area which has shown quite a bit of opposition to the traditional Walmart stores, as well as an area with an established Fred Meyer presence. They may be stepping it up a bit as Albertsons as well as Haggen were already shrinking before all of the mergers, but I honestly do not think it has had much of an impact in Portland.