Another great piece from Fresh & Easy Buzz.
This one analyzes the approach Wal-Mart now seems to be taking with Marketside as a brand rather than a format. If they roll out the idea of “marketside” nationally now, it bodes better for them should they decide to try to open “marketside” formatted outlets in another geographic area.
The true potential of these small-format lifestyle stores is to penetrate the hip urban city centers where space is at a premium and the logistics of real estate prevent big box retailers from setting up shop. There are a lot of food dollars up for grabs in these densely populated, often underserved communities. Trader Joe’s has been very successful going after this market.
Consider this advice, Wegmans. Your brand is hot. Your PL program is incredibly strong. Your inhouse production capabilities have just been boosted by the Culinary Innovation Center for your already successful prepared foods endeavours. Develop a small-format limited assortment (private label focused) store to infiltrate lucrative city centers like NYC, Boston, Philadelphia, Washington DC, Baltimore, etc. Reinforce the brand with the inner city elites, boosting recognition and overall market share of these major metropolitan areas. Just an idea to consider.
Expect a more detailed case for a Wegmans small format soon.