BENTONVILLE, Ark. -- Wal-Mart Stores Inc. said on Friday that it is not accelerating the test of its convenience store-sized grocery stores, called Marketside, given the economic climate. "We're pleased with it, but at this point in time given the current condition in the marketplace, with a significant reduction in demand...we are not accelerating that effort until we have better data to make a decision," Wal-Mart Vice Chairman Eduardo Castro-Wright told reporters after the retailer's annual meeting, according to a Reuters report.
In October, Wal-Mart officially opened four Marketside stores in the Phoenix area. The stores seek to woo shoppers who are looking for ready-to-eat meals and fresh produce, and might not have time for a trip to a full-scale grocery store. Marketside stores are approximately 15,000 square feet, while Wal-Mart's supercenters average 187,000 square feet.
The Marketside test came after British grocer and rival Tesco opened Fresh & Easy Neighborhood Stores, c-store-like grocery stores, in the United States in late 2007.
Tesco, based in the United States in El Segundo, Calif., is now making major changes in its Fresh & Easy stores as analysts worry that the U.S. chain is still searching for a successful niche. In what it calls an "evolution," Tesco is putting more focus on value and adding about 1,000 items to Fresh & Easy stores' current 3,500-product assortment, which represents about 10% of what a typical U.S. supermarket carries.
Wal-Mart also revealed last week that it will create more than 22,000 jobs in 2009 to staff new or expanded stores in the United States, reported RTTNews.com. The Bentonville, Ark.-based company announced last October plans to open 142 to 157 new or expanded stores during fiscal 2010 in the United States.
Wal-Mart, which houses more than 7,900 retail units under 55 different banners spanning 15 countries, said it is hiring for a number of positions, which includes, among others, store management, pharmacists, human resource managers, customer service associates, cashiers and sales associates.
Wal-Mart, which experienced a net growth of more than 33,800 associates last year, employs above 2.1 million associates worldwide.
The company further specified that jobs envisaged to be created for now total 1,300 in the state of Arizona; 1,000 in California; 1,300 in Florida; 1,500 in Michigan; 1,200 in New Jersey; 1,000 in South Carolina; 1,200 in Utah, and 1,100 in Virginia.
Wal-Mart's total U.S. retail units number 4,269, of which, Wal-Mart Stores stands at 883, Supercenters at 2,630, Sam's Clubs at 602, Neighborhood Market at 150, and Marketside at four, according to the report.
Eduardo Castro-Wright, vice chairman of Wal-Mart Stores, said, "During this difficult economic time, we're proud to be able to create quality jobs for thousands of Americans this year."
As part of its efforts to lure budget-conscious shoppers, Wal-Mart also has refurbished its Great Value proprietary brand.
Wal-Mart recorded $401 billion sales in fiscal 2009 and for the four-week period ending May 1, 2009, sales were $29.9 billion, down 2.4% year-over-year.
And click here for a CSPTV visit to Marketside and Fresh & Easy.
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