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Al Norman

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The Incredible, Vanishing Wal-Mart

Posted: 11/09/11 03:45 PM ET

Wal-Mart has stumbled onto something really big: stores that are really small.

After ripping up our nation's landscape for nearly half a century, Wal-Mart has discovered that you can open up a store 1,000 square feet in size -- and then fold it up and disappear two months later.

If only we could do that to their 200,000 square foot superstores!

The industry calls these ephemeral outlets "pop-up" stores -- and I have to admit -- I like the concept of a store that can vanish overnight. It's a retail form of guerrilla theater.

Wal-Mart has become very adept at shutting down stores. Since the 1990s, Wal-Mart has closed down more stores than its competitors will ever open. As of last month, Wal-Mart Realty had 12 million square feet of "dark stores" to sell or lease. The giant retailer often hires regional real estate brokers to move all their empty inventory.

Wal-Mart realized years ago that grocery stores attract more foot traffic than almost any other retail format, because you and I buy bananas and bread more often than we buy underwear or lawn furniture. So they began abandoning hundreds of discount stores that they couldn't remake into superstores.

CSP Daily News reports this week that Wal-Mart has opened up two tiny pop-up stores in Southern California. "This is just a small test we're conducting during the holiday season," a Wal-Mart spokesman told CSP," to offer local customers easier, more convenient access to quality products at everyday low prices."

These Cinderella stores will turn into pumpkins on December 31st. The mini-mini format offers shoppers access to a million items through the remarkably boring and unattractive walmart.com portal -- a website devoid of all visual appeal, a jumble of Turkey Fryers and Personalized "Bless This Home" Doormats.

Hundreds of citizens groups over the past twenty years have prayed that the Wal-Mart superstore perched on the edge of town would just melt away in the night. Now Wal-Mart has created a pop-up store that dashes away after Christmas like Old Saint Nick. It's Wal-Mart's present to the environment -- and a dream come true for sprawl-busters.

CSP News notes that "larger store floor plans are becoming less necessary at some chains, as shoppers buy products online." Wal-Mart America is carrying 4,400 brick and mortar chain stores around its waist like the chains on Marley's ghost. With each passing month, as electronic sales eat up market share, Wal-Mart's superstores look more and more like oversized dino-stores, the equivalent of an ice age business model.

In the same CSP article, a retail analyst explained: "If they [retailers] could wave a wand, a lot of them would completely reconfigure their stores. They'd probably close a lot of stores and the remaining stores would be smaller."

Pocket stores may be the next "big" thing in retailing. And wouldn't it be grand if, on December 31st, we could wave a wand and all the Wal-Mart superstores would disappear, like the pop up stores in West L.A. and San Diego.

One of the greatest threats to Wal-Mart's sustainability over the next decade is its bloated inventory of stores. A company so proud of its logistics technology realizes that a virtual retail store can fit inside any smart phone. Now that Wal-Mart has shrunk itself to 1,000 square feet -- the next step is to vanish altogether.

Al Norman is the founder of sprawl-busters. He has been helping citizens groups fight big box sprawl for the past 18 years.

 
 
 
 
 
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01:54 PM on 11/13/2011
I live off Rothrock Road on a cul-de-sac less than 1/4 mile from the proposed Walmart/Sam's Club/gas station. There were 3 roads to access these businesses but Fairlawn has closed 2 of them as their only 'weapon' to fight against the project. This forces all the traffic to an already congested area where big stores like JCPenny, Levin Furniture, Home Depot, Best Buy are located. Walmart intends to relocate on a 2-lane road with the expressway behind them and a residential area across from them. There are already 6 gas stations within one mile. There is plenty of empty land on Route 18 (current location) but for reason that no one can understand, they want to relocate one mile back from Route 18 into a residential area. The trees will be cut down allowing even more expressway noise. Walmart could easily expand at their present location or move down the road where all they'd need is a traffic light and turning lanes and be in a visible area easily accessable. They have caused major friction and turmoil between two communities that share a school system (Copley-Fairlawn). Copley has nothing to lose, as it doesn't their residents, but everything to gain (revenue from taxes). It's a shame Copley has allowed this to happen. So, Mr. Levey and Walmart, go somewhere else and leave our nice, quiet neighborhood alone, so we can live like we did before.
09:52 AM on 11/11/2011
My wife and I were so very happy when Walmart beat back the unions in California and were finally able to build their super stores.
Nightangle
NPA - no party affiliation
10:09 AM on 11/11/2011
My employer is one of many carriers that writes insurance coverages for Walmart, Target, KMart etc from general liability, products, Workers Comp to multi-layered coverages. I know that their employees are their number 1 assets. It is a shame of the derogatory myth perpetuated against them.

Whether we realize it or not conglomerate super stores like Walmart, Target, KMart, Home Depot, Lowe's etc are the biggest employers of this country.

But to put it in context, they are not perfect either. Such is the world. There are many ways for the employees, management and the public in general to create an environment where the needs of these components can achieve their own interest.

I am a firm believer that Union and Management can maintain civilities without propagating derogatory myths against.

As a consumer, I want low prices, better service, courteous employees, livable wages and profit to these super conglomerate stores.

That would be a win-win for all.
10:14 AM on 11/11/2011
Agreed. But many times it doesn't work.
09:48 AM on 11/11/2011
I love Walmart. Unfortunately Walmart made one major mistake a few years ago when they started moving into inner city locations. Prior to that they were in the suburbs and in small towns. The problem was theft. The inner city theft rates were three or four times that of the other stores so now they are starting to phase out of inner cities.
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lrobb
Gold Standard = four paws and a tail
07:37 AM on 11/11/2011
Until online retailers can deliver the desired item directly to your hand in seconds, bricks-and-mortar venues will continue to be the most popular. False eyelashes delivered in five days aren't going to do me a heck of a lot of good if the party is tonight.
07:00 PM on 11/10/2011
They can hire married couples to run the small stores and call them Mom and Pop shops.

Then we can compare numbers with all the small businesses they clobbered to create this um, new niche.
09:50 AM on 11/11/2011
Always low prices.....always.
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David Nassar
11:33 AM on 11/10/2011
Love this piece Al. In 2005 at Walmart Watch we said something that is as true now as it was then - Walmart's business model is unsustainable. When they moved into grocery in the 90s it fueled remarkable growth, but it also was fueled by inelastic demand while the elastic side of the stores went under-demanded - cue the "step across the aisle" campaign of 2006, later abandoned by Walmart. Keep writing Al. Between you and Stacy Mitchell at Grist, the word is still getting out. Now, if our friends would have just left up all the resources of the Walmart Watch site on the web.
10:14 AM on 11/10/2011
Let them vanish, considering that a customer is lost anyway in that big box. The Service has already vanished away, No one to help you find what you need you waste more time that you need to, when finally you find someone, either he/she doesn't speak well or asks you to wait for someone else. Now, so many will have to go back again to the Unemployment line. Greedy and Outrageous. Ludin
10:20 PM on 11/09/2011
Well, the writing is on the wall...and it has been for a number of years now. Unfortunately the myopic folks on the permit board in my little town can't see it. We just lost a long struggle to stop a 160,000-sq.ft. Walmart from locating on prime-ag soils here in Vermont.

But we have a feeling that, if the developer actually builds the thing (which some of us doubt will even happen) Walmart won't occupy it longer than necessary to try and push through a supercenter; and should THAT ill-advised project actually get permitted and built, it will be abandoned almost before it's opened.

Sadly, naive town officer's get seduced by the promise of quick fixes for the local economy and ignore all the intuitive long-view indicators that should tell them this is a bad-idea headed for worse.
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notdarkyet
End the Drug War.
11:13 AM on 11/11/2011
They will occupy it till most small business in your town close. That's what happened here.
08:16 PM on 11/09/2011
There is currently a proposal in Fairlawn, Ohio to move a Walmart one mile from its current space to Copley Township. And of course, that leaves an empty store, actually 2 empty stores because they want to move the Sams Club as well. Does not make sense to move current store from a location that enjoys all kinds of access to a location, one mile away, on a two lane road across from a residential area. Stay where you area Walmart and remodel the current location. Stop destroying the country and do us all a favor and just go away.
09:35 PM on 11/09/2011
One of Wal Mart's strategies has been to open several stores in adjacent towns, then when other stores close down, they consolidate their several stores into a few, knowing they are now the only game going. I have seen numerous examples of empty Wal Mart stores, abandoned to add groceries, or to consolidate when their competition is gone.
QuantProgrammer
Cap welfare benefits at two kids.
09:49 AM on 11/11/2011
Hmmm. Might be a smart idea to take the issue to the CEO or BOD. Come up with a counter-proposal to revamp the store instead of building a new one, and they might just go for it.