Guess what Wal-Mart Stores, Inc. just did in my former university town today? They launched a clearance sale at their Wal-Mart Express mini-location that will be closing down for good this Friday. This anecdote is not location specific. Wal-Mart is in the process of closing all 102 of its Wal-Mart Express locations this year.
Carol Spieckerman, a retailer, offered the most succinct of why this project failed: “Wal-Mart openly acknowledged its struggles to manage everything from pack sizes to back room processes and transportation to urban location. It was faced with operating a model that was more unique that synergistic with its core business. The small-format landscape is also quite crowded with seasoned competitors such as dollar stores, drug retailers, and hard discounters.”
That analysis was perfectly on point. Anything else is just an elaboration of those three sentences. When you hear “Walgreens”, you think about cold beverages and medicine. … Read the rest of this article!