Wal-Mart’s Marketside Analysis

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.

2 responses to “Wal-Mart’s Marketside Analysis

  1. Do think you are on to something regarding Wegmans and small-format. They are one of the few food retailers that could make it work. In fact, we’ve been thinking about Wegmans for some time as a grocer that should test a small-format, urban market. Good insightful thinking.

    We also think Walmart should have (and still could) tested marketside in an urban environment rather than in suburban Phoenix, Arizona. Urban centers are where the retailer has the least (if any) penetration – New York, Washington DC, San Francisco, ect.

    Thanks for the coverage.

    • Wegmans has been playing around with their format for decades, but they seem married to their high-volume, high-square footage model. They’ve been able to scale-up, why not scale-down?

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