Lee Scott has always maintained that Asda was outmaneuvered by Tesco's convenience format in the U.K. and apparently he's not willing to let the same thing happen in the U.S.
According to a report by the Financial Times, Wal-Mart plans to open four small-format grocery stores in Arizona this year under the "Marketside" banner in response to Tesco's entry into the U.S. with its Fresh & Easy format. The new Marketside units will measure approximately 20,000 square-feet.
While Wal-Mart did not give the Financial Times a detailed description of the new format, it did indicate that the Marketside concept would be similar to its Neighborhood Markets.
Wal-Mart is looking to open its first Marketside stores in corner locations that formerly housed drugstores. The company has applied for licenses to sell beer and wine in its new stores. The first stores will open in Mesa, Gilbert, Chandler and Tempe.
Discussion Questions: What is your reaction to news of Wal-Mart opening smaller format stores? What do you see as the opportunities and challenges facing the company as it attempts to operate a small store format?