SeaFood Business

JUN 2014

SeaFood Business is the global trusted authority for seafood buyers and sellers. We are the seafood industry's leading trade magazine with more than 30 years of experience. Our coverage is based on the "business" of buying and selling seafood.

Issue link:

Contents of this Issue


Page 34 of 46

understand neighborhood demand patterns and assort accordingly," says Jim Her- tel, managing partner at re- tail consulting frm Willard Bishop in Barrington, Ill. Kantar predicts that Walmart will add 100 Walmart Express units, which range from 10,000 to 15,000 square feet, in the next fscal year. Te stores feature a variety of refriger- ated, frozen and shelf-stable seafood items. Seafood suppliers also have increasing opportuni- ties to sell their products with Walmart's ramped-up e-commerce eforts. Te re- tailer is testing Walmart to Go grocery home delivery service at 11 stores in Denver and then will likely expand the service to other metro- politan markets. "Walmart is trying to cre- ate an ecosystem in which a shopper can get access to Walmart any way they want," Nicholas says. Meanwhile, Target plans to add between 10 and 20 PFresh stores in the next fscal year. Already, Target operates 1,200 scaled-down PFresh stores, representing around 80 percent of its store base. "All new stores (except for Target Express) are PFresh. What's in Store 30 SeaFood Business June 2014 Visit us online at Walmart's small-format urban Neighborhood Market has a fresh focus. The Neighborhood Market seafood variety is "edited" from a typical Walmart. Photos courtesy of Walmart Small packages Mass-merchandise retailers test smaller-format stores with a perishables focus BY CHRISTINE BLANK W almart and Target: Ar- guably the two big- gest names in mass merchandising, the retail giants have in recent years expanded into the gro- cery space with great suc- cess. Now the big players are going small and in uncon- ventional locations to tap into new sales opportunities. Earlier this year, Walmart doubled its original growth forecast for its smaller-for- mat stores, saying it would add between 270 and 300 units in 2014. Walmart cur- rently operates 346 Neigh- borhood Markets and 20 Walmart Express stores. "Neighborhood Market is performing comparable or favorable to leading grocers," says Bill Simon, Walmart U.S. president and CEO, in a statement. "Our small- store expansion, in addi- tion to providing customers access to a wide variety of products including fresh, pharmacy and fuel, will help us usher in the next genera- tion of retail." Neighborhood Market's focus on all things food, rather than typical depart- ment store-type items, makes it an ideal candidate for growing its fresh and fro- zen food selection. "Because Neighborhood Market is a supermarket, it gives sea- food more visibility," says Leon Nicholas, senior VP at Kantar Retail, a global retail market insights frm. Kantar predicts that Walmart will add around 200 more Neighborhood Markets by the end of this year, and that's just the start. "By 2018, [Walmart] could be in the mid-$20 billion range for that format," says Nicholas. "Tat's a retailer that is bigger than Meijer, and that is just one banner." Te Neighborhood Market brand has grown quickly be- cause executives have fgured out how to use the pharmacy as a trafc driver, Nicholas says. "Walmart has also given stronger internal support to the stores," adds Nicholas. "Neighborhood Markets were originally seen as an add-on [to traditional Walmart stores and supercenters]." While the perishables as- sortment in the 40,000- to 80,000-square-foot Neigh- borhood Market stores is less than in Walmart supercent- ers (which average 197,000 square feet), seafood suppli- ers still have opportunities for their product to achieve shelf space. "Assortment is typi- cally edited, but not nec- essarily to just top sellers. It's critically important to 30_31_WIS_june sfb.indd 30 5/16/14 11:36 AM

Articles in this issue

Links on this page

Archives of this issue

view archives of SeaFood Business - JUN 2014