From deep discount to deluxe: Wal-Mart opens a new and improved store format

Dive Brief:

Wal-Mart opened a "new and unique" Neighborhood Market store prototype in Myrtle Beach, SC on Wednesday, according to the Shelby Report. This 46,000 square foot store format has been rolled out in only a few markets nationwide.
Updates include new and improved signage, polished granite floors, wider aisles, made-to order pizza and more. The store also offers a variety of local, organic and gluten-free offerings alongside traditional groceries, as well as a full-service deli and in-store bakery that makes personalized cakes and fresh baked breads.
The Myrtle Beach store also includes a pharmacy, fuel station and a free store pickup service.

Dive Insight:

With this new store prototype, Wal-Mart appears to be capitalizing on consumer demand for premium grocery experiences. Many retailers are updating their formats to lure shoppers who enjoy the high-end aesthetic of many organic markets, though few deep discounters are investing in polished granite floors and the like.

It's possible that the mega retailer is refreshing its formats to prepare for Lidl's summer invasion, and it will be interesting to see if a sleeker store model and extra food service options will be enough to protect its market share. Regardless, Wal-Mart is giving a clear message to traditional supermarket competitors: it's ready to compete harder in the grocery game.

Target is leveraging a similar strategy with plans released that "reimagine" the grocery department as one more like a traditional store. The first redesigned store, set to open in Houston this summer, will include an enhanced produce department, more grab-and-go prepared meals and more circular center-store aisles. The retailer also recently added Jeff Burt, former president of the Fred Meyer division of Kroger Co., as its senior vice president of grocery, fresh food and beverage, in a move analysts believe will help the company improve its in-store grocery experience. This seems to a be a savvy move in today's grocery environment, and may be one that other big box stores soon emulate.