Walmart Rebrands Its Express Stores To Neighborhood Markets

By Brianna Ahearn, contributing writer

Walmart opened its first smaller-size stores, known as “Walmart Express” stores in 2011,  but now the retailer will be rebranding the locations. The existing 21 Walmart Express locations will take on the name of the company's other smaller scale store, Neighborhood Market. Walmart will open all of its future Express stores under the Neighborhood Market banner as well.  The two store chains are alike in their purpose, and it's apparent that the retailer feels like it makes sense to merge the two together.

Both Neighborhood Market and Express stores were developed to help shoppers in between trips to the superstores. With Neighborhood Market, there's more focus on groceries and other merchandise in the 38,000 square feet a typical store occupies. The Express format occupies 12,000 square feet. Walmart planned to have 90 Express stores open by the end of 2014. Express was designed to be a “fill-in” store for shoppers, offering options for last minute purchases, prescription refills and other quick services.

Retailers like Target and Walmart offering smaller scale stores for urban and convenience shoppers has been one way the big box stores can compete with the growing popularity of dollar stores, according to retail analysts. The move to rebrand appears to be Walmart's response to the “battle of the dollar stores,” as a merger between Family Dollar and Dollar Tree moves forward. Dollar stores across the board have been adding more frozen merchandise and groceries to their stock, which already challenged Walmart's sales. The two dollar store companies joining as one corporation presents a credible threat to Walmart, and it's apparent Walmart has decided upon this as its strategy for success.

There are currently 381 Walmart Neighborhood Market stores throughout the United States. Walmart has been in the news recently for declining sales in its traditional supermarket stores, but the sales have been positive in the Neighborhood Market space. Now the company wants to streamline the retail experience for consumers and compete with dollar stores. “Walmart's research into customer habits showed that its Express stores were serving the same purpose as its largest Neighborhood Market stores,” says Judith McKenna, Walmart's Chief Development Officer.

The shift from Walmart Express to Walmart Neighborhood Market isn't the only change the retailer's making. The company is currently testing a convenience store to rival 7-Eleven or Circle K stores. Known as Walmart To Go, it's only available in Bentonville, Arkansas, home of Walmart's headquarters. Walmart To Go features, fuel pumps, a make-your-own-milkshake machine, and checkout stations much like those at convenience stores. The store also features a small deli counter where customers can place orders for custom sandwiches and other options for “grab and go” food. According to the latest news reports, Walmart is losing $415 billion in the “quick trip” marketshare, so all eyes will be on the performance of Walmart To Go and Walmart Neighborhood Market.