Supercenters take root take root

Discount Store News, Oct, 1999

BENTONVILLE, ARK., OCT.13, 1986

Wal-Mart has teamed up with a Texas supermarket company to test a new discount store format: huge full-line hyper-market-type units to be called Wal-Mart SuperCenters.

Industry observers suggest that Wal-Mart would position the proposed 150,000 sq. ft. stores as one-stop shopping centers in major metro markets. They would be the consumer counterpart to the businessman-oriented Sam's Wholesale Clubs that company executives had previously described as a "metro market strategy" for Wal-Mart.

The discounter and Cullum Cos., a Dallas-based supermarket and drug store operator, have reached an agreement in principle to set up a jointly owned venture called Wal-Mart SuperCenters Inc. to run the proposed combination food and general merchandise stores.

Executives of both companies said it was premature to discuss the design and layout of the stores, the distribution network, location of units or the staffing of the new company.

They disavowed trade reports that the new stores would be modeled on European hypermarkets or be similar to current combination food and general merchandise units like Fred Meyer.

Wal-Mart made the announcement "earlier than we usually make such statements because it was a joint venture and the company wanted shareholders to hear about it from us ...

Wal-Mart opened its first Hypermart USA in 1987 and had four in place by the next year. The concept took its influence from European hypermarkets and Wal-Mart's own Sam's Club. Simultaneously, Wal-Mart was planning its Wal-Mart supercenter concept, which opened in Washington, Mo., in spring 1988. While Wal-Mart was visionary in seeing the possibilities for a combination food/general merchandise operation, Hypermart USA was not the answer and Wal-Mart did not open any after 1988.