What is the purpose behind opening the neighborhood Market? Is it fruitful?
Who is not really familiar with the word Walmart? That OG Walmart we have grown up with, from making our holiday shopping spree to our basic groceries. Walmart always comes in handy when you are looking for going to a one stop shop. But what is Walmart Neighborhood Market? It is a project of Walmart, which offers market style stores in Suburban or town areas.
These markets sell items of basic necessity to keep the customers going in their lives uninterrupted. In this article, we will delve into what it is, how is it different than other Walmart, some of its advantages and disadvantages and lastly how profitable it has been for the company?
Without further ado, let’s get started!
What is Walmart Neighborhood Market?
Walmart started as a retail store in 1960s. It expanded and become what we know today as Walmart supercenters.
But in late 1990s, Walmart felt the need of launching relatively smaller outlets featuring only basic necessary items aiming to spread their reach to everybody. Quite considerate, Right? Then, what they should’ve done in order to achieve that mission? These market-styled stores were positioned in smaller towns and city areas where larger super centers were not located. These stores were named as Walmart Neighborhood Market.
Comparison Between Walmart Super Centers & Walmart Neighborhood Market
| Sr No. | Walmart Neighborhood Markets | Walmart Super Centers |
| 1 | Started in 1998. | Started in 1962. |
| 2 | Very first outlet was opened in Bentonville, Arkansas state, USA. | Very first outlet was opened in Washington, Missouri, USA. |
| 3 | 799 market-styled stores across USA. | 3,560 Supercenters across USA. |
| 4 | Normal area is 38,000 square feet. | Normal area is 182,000 square feet. |
| 5 | Less Crowded. | More Crowded. |
| 6 | Less Variety at higher prices. | More variety at lower prices. |
| 7 | Located in Suburban, Towns & City Areas. | Located in Suburban, Populated & Urban Areas. |
| 8 | They feature basic items such as food – meat,dairy, deli, baked items, fruits, vegetables, etc., Household supplies, Pharmaceuticals. | Features everything. |
Pros of going to Walmart Neighborhood Market
Convenient Locations
Walmart’s aim of reaching the people in smaller towns and cities with their services. They have located their neighborhood stores in the most accessible locations.
Faster Check-outs
Due to smaller layouts of these stores, there are not many people inside which makes check-out lines significantly shorter. Making check-outs much faster.
Site-to-Store Convenience
This is done as the customers can place an order for the goods online via Walmart’s website and then can pick up their package from their nearest Neighborhood market.
Cons of Walmart Neighborhood Market
Higher Prices
One of the greatest and only downside of these stores are their higher prices than supercenters. The prime reason being the limited stock of goods available in the store. Which is absolutely not cost-effective given the pricing of the conventional Walmart Supercenters. Making it hard to attract people to opt for it in the first place.
Has Walmart Neighborhood Market been Shutting Down?
Unfortunately, Yes. In January, 2022, the total number of Neighborhood stores were 799, all over the USA. In recent times, these stores have been shut down by Walmart. What could be the reason?
These stores didn’t prove to be much profitable for the business and didn’t perform as per the expectations, said the Walmart Family. In 2019, 8 Neighborhood market locations were shut down and they still continue to do so.
Conclusion
Since 1960s, Walmart is in business as a retailer. Today, it has outlets all across the world. Walmart Neighborhood is one of the projects of Walmart focusing market-style stores in smaller areas. It, for sure, is convenient but is quite expensive. Which is kind of a bummer for its customers. Nonetheless, it is trying to come up to its consumer’s expectations which will also improve their annual revenue generation in return.
That brings us to the end for today’s topic. Kindly, sound off in the comments below. Do you have Walmart in your area? Thank you!
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