Wal-Mart gives vendor store superstore format

Discount Store News, Sept 5, 1994 by Pete Hisey

TULSA, OKLA. -- Wal-Mart debuted its first vendor store in four years here last month. The store, one of 12 supercenters that debuted Aug. 19, is primarily involved in apparel and food tests, although there are several initiatives in hard lines and customer service.

Vendor stores feature fixtures, signage and merchandise presentations developed by leading category vendors. In this case, Retail Planning Associates (Columbus, Ohio) coordinated all fixturing with the vendors.

Storewide, the most visible change is a series of oversized color photos in every department, linked to the goods in that department. For instance, the toys area featured jumbo photos of Barbie, Lego and other toys, visible from the other side of the store.

"With: a store this size, we need more than just department signs," store director Russell Parker noted.

"Customers can see these signs from virtually anywhere in the store," he said.

The improvements in apparel were often dramatic. Reed St. James' fixture made of wood, glass and metal for men's suits was a particular standout, merchandising jackets, double rows of matching slacks (double folded to offer more stock), socks from Burlington, ties and leather belts and shoes. In effect, the fixture produces a mini men's boutique that puts the best light on Wal-Mart's minimal dressy selection. The company also produced a four-way wood fixture for its Loafers brand of casual slacks, similar in style to Levi's Dockers.

Rebounding Gitano, which was a major force at past vendor stores, also turned in a strong fixturing program, with department store-style light wood fixtures offering folded goods. Jerzees introduced a striking triangular gray fixture for leisure apparel.

The shoe department was a radical departure for Wal-Mart, looking more like an upscale specialty store. The department's 15-ft. fixtures topped with vivid signing were angled off the race track at the rear of the store, with the department broken out into children's, men's, ladies', and athletic, as well as Dr. Scholl and licensed sneaker mini-departments. E Patrol, which also had a mini-department, augmented it with an interactive game kiosk for kids to play while shopping.

Apart from plus size, this Wal-Mart dispensed almost entirely with rounders, replacing them with four-ways, which dramatically improved presentation.

"We expect this to be a much stronger apparel store," said regional director Ed Robertson. "But we haven't changed the merchandise at all ... just the presentation."

Robertson added that a supercenter is ideal for a vendor store because it attracts so many families shopping together. "Customers shop more thoroughly, it's more of an event for them," he said. "That gives us more of an opportunity to make big-ticket sales" because all of the decision-makers: mom, dad and the kids, are on-hand.

Augmenting that capability at this unit will be a full-service branch of State Bank, owned by the Walton family, that will be equipped to offer quick small loans for purchases of products like computers and lawn tractors.

Anderson added that the new store's location, directly across the street from Oral Roberts University, appeals to a more affluent demographic base than is the case with many supercenters. "That should show up as a higher percentage of apparel sales, more music sales and so on," Anderson said. "This is mainly a bedroom community in this area, and they have more disposable income" than is the case in the more ethnic Northside, where the first Tulsa supercenter opened.

The new Wal-Mart Supercenter has also modified its consumer electronics corral. While there is still only one way out, the exit has been opened up to cut back on the security impression. All CDs are live, without plastic holders, because of a new Sensormatic technology that places a small security filament inside each jewel box. Cassettes, which make up a smaller proportion of skus in this store compared to an average Wal-Mart, remain in the holders.

This store marked another increase in first-line computer software, with a full Microsoft 8-ft. run complementing the 20 ft. or more given to other publishers. Microsoft's Encarta, at $95, also marks the first time Wal-Mart has broken the $50 barrier by more than a few dollars.

Hard lines also received a facelift, particularly automotives, which seems to have taken a few pointers from auto superstores like AutoZone. Aisles have been widened considerably, with multiple facings of products that formerly had one or two creating a strong perception of increased depth. Tires are angled out on fixtures, with stock kept in the back, to add a little pizazz to a fairly dull category, and a new fixture for batteries includes a touch-screen for selecting one's year and model car, at which point a light above the appropriate battery lights up. The lube center has been redesigned, with attendants greeting customers outside, then driving their cars through one of eight bays. A 15-point lube job can be completed in 15 minutes or less, and a relatively comfortable waiting area has been added.