Walmart observations

Predicting the demise of Sears & Kmart since 2017!
BillyGr
Store Manager
Store Manager
Posts: 1579
Joined: October 5th, 2010, 7:33 pm
Been thanked: 58 times
Status: Offline

Re: Walmart observations

Post by BillyGr »

storewanderer wrote: April 6th, 2022, 11:42 pm I find in general these "irregular" Wal Marts don't seem to work. I think it is for a variety of reasons. First, a large segment of the residents of these areas did not want Wal Mart in the first place. So Wal Mart noses around and finds an old undersized/irregular space and opens anyway. They open an inferior store because it is undersized and lacking SKUs. This upsets the segment of residents who may actually like Wal Mart because the store is inferior to the full size Wal Mart they can drive 10 miles to. Then the operating cost in the location is likely higher than usual for Wal Mart due to higher lease, etc. It just seems like a lose-lose situation. Especially in an area with a heavy Fred Meyer presence.
Also depends on the situation - for instance the one in Bennington (VT) that was in an old 5/10 store (since that was the only way they could open, given some of the more restrictive rules in VT).

That one always did well, but there was no other one to drive to 10 miles away (North Adams, MA is the next closest and was only a standard store for quite some time before expanding to a super center), and the only other stores in town were a Kmart (which was also on the smaller side) and a strip JC Penney. So in that setting it makes sense that the smaller Walmart worked well (and it has since been expanded, but still somewhere around 100,000 Sq. Ft. which is still small for them - I'd guess less grocery also given that a supermarket is in the same plaza).
SamSpade
Store Manager
Store Manager
Posts: 1570
Joined: September 13th, 2015, 4:39 pm
Has thanked: 374 times
Been thanked: 57 times
Status: Offline

Re: Walmart observations

Post by SamSpade »

marshd1000 wrote: April 7th, 2022, 8:05 am Interestingly, way back before Walmart was open in the Pacific Northwest, they had tried to buy Fred Meyer but were rebuffed!
Never heard that rumor before. Interesting. :)
mjhale
Shift Manager
Shift Manager
Posts: 429
Joined: October 2nd, 2016, 4:02 pm
Has thanked: 1 time
Been thanked: 47 times
Status: Offline

Re: Walmart observations

Post by mjhale »

BillyGr wrote: April 7th, 2022, 4:20 pm Also depends on the situation - for instance the one in Bennington (VT) that was in an old 5/10 store (since that was the only way they could open, given some of the more restrictive rules in VT).
Similar situation in Rutland, VT. The store I've heard is that Kmart moved from their downtown location to the then new mall which opened in 1995. Walmart wanted into Rutland. The town said the only way you'll be approved is if you take over the old downtown Kmart space. I was in the Rutland Walmart a few times in the late 1990s and early 2000s. Every time I was there it was packed. They share the center with Price Chopper so I'd be curious what the grocery offerings are these days. Back then it was the typical chips, snacks, juice and soda stuff that Walmart sold. The mall in Rutland has since closed and is up for redevelopment. I'd be curious to know if Walmart has made any moves to try to open a supercenter at the redeveloped site. Walmart has so few stores in Vermont that they don't have anything else within a reasonable drive of Rutland.
buckguy
Store Manager
Store Manager
Posts: 1004
Joined: January 31st, 2017, 10:54 am
Has thanked: 3 times
Been thanked: 61 times
Status: Offline

Re: Walmart observations

Post by buckguy »

It's cheaper to shop in New Hampshire (no sales tax), so you see a lot less chain retail in much of Vermont than you might expect. The corridor from about Rutland to Burlington is far away from the border where discounters or big boxes could be viable, although they have to deal with zoning in those places.
mjhale
Shift Manager
Shift Manager
Posts: 429
Joined: October 2nd, 2016, 4:02 pm
Has thanked: 1 time
Been thanked: 47 times
Status: Offline

Re: Walmart observations

Post by mjhale »

storewanderer wrote: April 6th, 2022, 11:42 pm I find in general these "irregular" Wal Marts don't seem to work. I think it is for a variety of reasons. First, a large segment of the residents of these areas did not want Wal Mart in the first place. So Wal Mart noses around and finds an old undersized/irregular space and opens anyway. They open an inferior store because it is undersized and lacking SKUs. This upsets the segment of residents who may actually like Wal Mart because the store is inferior to the full size Wal Mart they can drive 10 miles to. Then the operating cost in the location is likely higher than usual for Wal Mart due to higher lease, etc. It just seems like a lose-lose situation. Especially in an area with a heavy Fred Meyer presence.
I agree with BillGr that this is situational. On the west side of Fairfax City, VA there is a Walmart that is located in an old Home Depot Design Expo Center. I'd say the building is no more than 75,000 sq feet. Walmart was able to get full grocery in there (albeit with slimmed down selection) and the rest of the usual Walmart stuff on the interior. To fit non-grocery everything they really slimmed down soft lines and clothing. HBA, paper and cleaning plus electronics got the most emphasis outside grocery. The store is surrounded by neighborhoods that can easily walk to the store and it is on a main road that gets plenty of traffic. The irony of this store is the other half of the min strip mall was originally a Food Lion turned Bloon turned back to Food Lion. Food Lion closed after Walmart opened. The space became a Big Lots which was a flash in the pan. After Big Lots closed the common thought was that Walmart would take over the entire building. I have heard that Walmart feels the store is just fine as it is and they see no need to expand. The old Food Lion/Big Lots space is now a Lidl. It is a good combo and it prevented the west side of the city from becoming a food desert after the nearby Giant-MD closed (victim of Walmart). The little Walmart even got the latest prototype remodel which I must say looks very nice in the store.
Romr123
Assistant Store Manager
Assistant Store Manager
Posts: 693
Joined: February 1st, 2021, 4:26 pm
Has thanked: 37 times
Been thanked: 56 times
Status: Offline

Re: Walmart observations

Post by Romr123 »

buckguy wrote: April 8th, 2022, 2:40 pm It's cheaper to shop in New Hampshire (no sales tax), so you see a lot less chain retail in much of Vermont than you might expect. The corridor from about Rutland to Burlington is far away from the border where discounters or big boxes could be viable, although they have to deal with zoning in those places.
We spend a good bit of time in and around Brattleboro, VT and the Upper Valley up to White River Junction, VT (which are all along the Connecticut river)and there seems to be one of each chain supermarket and chain drug store in Brattleboro and White River Junction and various Family Dollar/Dollar General stores and that's about it--all other chain retail is either in Hinsdale, NH (5 miles away) or Keene (15 miles from B'boro); in Clarendon, NH or in Lebanon/W. Lebanon.
Alpha8472
Posts: 3931
Joined: February 24th, 2009, 8:55 pm
Been thanked: 79 times
Status: Offline

Re: Walmart observations

Post by Alpha8472 »

The Atwater, California Target is a Super Target. The Walmart next door must have competition like no other place. I wonder which store makes more money.
storewanderer
Posts: 14394
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Online

Re: Walmart observations

Post by storewanderer »

Alpha8472 wrote: April 8th, 2022, 7:09 pm The Atwater, California Target is a Super Target. The Walmart next door must have competition like no other place. I wonder which store makes more money.
The Wal Mart easily does 4-5 times the business of the Target during most of the week/evenings. Target on weekends probably has about 50% the traffic the Wal Mart has. It is an average performing Wal Mart. That is not a very good performing Target. It didn't even have self checkouts yet last time I was there (before COVID). I assume it has them now.
mjhale
Shift Manager
Shift Manager
Posts: 429
Joined: October 2nd, 2016, 4:02 pm
Has thanked: 1 time
Been thanked: 47 times
Status: Offline

Re: Walmart observations

Post by mjhale »

storewanderer wrote: April 9th, 2022, 12:23 am The Wal Mart easily does 4-5 times the business of the Target during most of the week/evenings. Target on weekends probably has about 50% the traffic the Wal Mart has. It is an average performing Wal Mart. That is not a very good performing Target. It didn't even have self checkouts yet last time I was there (before COVID). I assume it has them now.
Curious, what kind of money does a slow, average and high volume Walmart make on a weekly basis? The Walmart near me (a Supercenter) is constantly packed with lots of full carts of various merchandise. I figured they had to do multi millions a week given how crowded it always is.
storewanderer
Posts: 14394
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Online

Re: Walmart observations

Post by storewanderer »

mjhale wrote: April 9th, 2022, 11:58 am
storewanderer wrote: April 9th, 2022, 12:23 am The Wal Mart easily does 4-5 times the business of the Target during most of the week/evenings. Target on weekends probably has about 50% the traffic the Wal Mart has. It is an average performing Wal Mart. That is not a very good performing Target. It didn't even have self checkouts yet last time I was there (before COVID). I assume it has them now.
Curious, what kind of money does a slow, average and high volume Walmart make on a weekly basis? The Walmart near me (a Supercenter) is constantly packed with lots of full carts of various merchandise. I figured they had to do multi millions a week given how crowded it always is.
If you look at average sales for their US Wal Mart Division Stores from a financial report, divide total sales by total number of stores (includes all stores, very low volume neighborhood markets, etc.) they average about $1.5 million a week. If you do the same math for Target, the average Target will average a bit over $1 million a week in sales. Also Target is including online ship from store revenue in that amount, I am not sure about Wal Mart as Wal Mart ships many online orders from warehouses but is fulfilling more from stores now.

A "solid" full size Wal Mart Supercenter will run $2.5+ million a week in sales on a typical week. That would be for the store (would not have sales from a gas station out front being included) only. Much more during holidays, somewhat more at beginning of month, etc. But some Supercenters do significantly less volume than that for various reasons (inability to keep shelves stocked, inability to properly staff front end so customers can actually buy merchandise, smaller store size, area with many low ticket sales, sales mix more tilted toward food, etc.).
Post Reply