Walmart vs Dollar General: Who wins the race?
After months of low sales, the prototype of the large retailer is excited by the idea that size is not for everyone.
In a fourth-quarter earnings report released by Walmart last week, sales at American stores decreased 0.4% during the months of major holiday shopping, while pedestrian traffic decreased. 7% Sales at Walmart’s smallest branches, which operate in a neighborhood or express market and occupy a fraction of the typical super center area, were 4% during the year.
Last fall, Walmart announced plans to open 115 new super centers and 120 to 150 small stores in 2014. However, the recent successes of its various retail models have changed the plans. At the same time that Walmart released its overwhelming fourth-quarter report, it announced that it would double small business growth in 2014, hoping that 300 new Walmart Express and Walmart Neighborhood Market stores would open by the end of the year. will be.
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Walmart blamed, among other things, reduced profits from supermarket brands, higher wage taxes and unemployment as reasons for its top (low-income) customers to limit their regular trips to supercenters. Walmart and confiscated food, clothing and other wants and needs. Rather than making big purchases once a week, regular shoppers periodically picked up just a few important items from their neighborhood stores – supermarkets, drug stores, and especially dollar stores.
Walmart’s new tour of smaller, more convenient stores is one strategy to quickly win the shopper’s business. The world’s largest retailer wants customers to think of Walmart not just for stock trips to super centers, but also for replenishment trips to nearby locations, said Bill Simon, president and CEO of Walmart Management. in a press release announcing accelerated growth plans for small businesses. “Customer needs and expectations are changing. They want to buy when and how they want, and we are changing our business to meet their expectations,” he said. Customers appreciate the wide variety of our warehouse travel super centers and our small store formats to fill trips.
Walmart’s Small Push Box, in particular, is a direct field against its enemy, the dollar store. The two compete primarily on the basis of low prices, and the main form of Family Dollar, Dollar General, and Dollar Tree has been able to steal Walmart businesses and offer cheaper locations. With most of the shopping malls and urban centers in the United States that Walmart wants to locate for its small businesses that already have dollar stores, competitive struggles in communities across the country are inevitable.