Wal-Mart tests C-store buz; tinkers with Hypermart USA - Wal-Mart Stores Inc. opening convenience stores - includes related article

Discount Store News, Jan 8, 1990

Wal-Mart Tests C-Store Biz; Tinkers with Hypermart USA

BENTONVILLE, Ark. -- Looking for new retail worlds to conquer in the 1990s, Wal-Mart is taking its first tentative steps in tackling the gas-and-convenience store business.

The nation's No. 2 discounter has opened seven combination gas-and-convenience stores in parking lots already serving Wal-Mart discount stores, SuperCenters and Hypermart USAs. Two other convenience stores are under construction.

In a related development, Wal-Mart declined to confirm rampant rumors in the market that it is preparing to change the name of its three hypermarkets--now called "Hypermart USA" -- to a name that would directly reference "Wal-Mart." Names being bandied about include "Wal-Mart USA" and "Wal-Mart's Hypermart USA."

DSN has also learned from a number of vendors and other knowledgeable sources that Wal-Mart is preparing to add a significant number of sku's--possibly as many as 100,000 or more--to its general merchandise selection at the Hypermart USA units. The addition of the sku's would put the general merchandise side in line with the broader selection found at Wal-Mart's three SuperCenters. Several vendors told DSN that they have been asked by Wal-Mart to reconfigure their product assortments in the hypermarkets to more closely parallel their SuperCenter mix.

Again, however, Wal-Mart would not confirm the planned addition of substantial numbers of new sku's at any of the hypermarket stores.

As for the new convenience stores, the first opened more than a year ago in front of the first Hypermart USA in Garland, Texas. That store, like the other two that are located at the hypermarkets in Arlington, Texas, and Topeka, Kan., are called Hypermart USA Convenience Stores.

The newest convenience store, called Wal-Mart USA Convenience Store, opened last month at the Wal-Mart discount store location in Springdale, Ark. The only other convenience store to open with a regular discount store is one in White Settlement, Texas.

In addition to the ones at the five mentioned above, the other two existing convenience stores are at the Wal-Mart SuperCenter in Farmington, Mo., and in Poplar Bluff, Mo., where a conversion from a regular Wal-Mart discount store to a SuperCenter is underway.

The convenience stores--which a Wal-Mart spokesman said were just "a test"--cover 5,800 square feet, including the gas pump area (all the gas stations are self-serve).

The stores carry the food and snack items common to such gas station convenience stores.

PHOTO : Wal-Mart Super USA in Farmington, Mo.: One of seven C-Stores in operation.