Wal-Mart's California laboratory - Wal-Mart Store Inc.'s hypermarket, Palmdale, California

Discount Store News, Nov 4, 1991 by Don Longo

Wal-Mart's California Laboratory

PALMDALE, Calif. - Wal-Mart has been quietly testing a number of new merchandising techniques in a unique, super-large store here on the southern edge of the Mohave Desert.

Opened in August, this 143,000-square-foot store is the largest general merchandise-only Wal-Mart in the country. The chain's hypermarket and supercenter units, which range in size from 120,000 square feet to 220,000 square feet, devote much of their floor space to supermarket operations. Wal-Mart's largest current standard, general merchandise store is its 110,000-square-foot prototype.

The new store, in this small, but growing city, located about 60 miles northeast of Los Angeles, is a major departure from what has become known as Wal-Mart's 110 format. The 110 format, with its wider aisles, blue-and-gray color scheme, and open, airy feeling, has been cited by industry analysts as the vital cog in Wal-Mart's expansion into more densely-populated suburban markets. New York-based investment analysts at Goldman Sachs estimate that by year-end, about 285 stores, or 16% of Wal-Mart's store base, will conform to the 110 format.

In contrast, the massive new Palmdale store, with its crowded aisles, numerous merchandise stack-outs, and tall, closely spaced metal fixturing, is somewhat of a throwback to the old 80,000-square-foot Wal-Mart format.

But it sports many enhancements, most notably a quartering of the store by signage and fixtures into four major departments: Fashion, Home Decor, Leisure and Drug Store.

Each section is denoted by a large overhead sign with the message: "Always the low price on the Fashion (or Home Decor, Leisure, Drug Store) brands you trust . . . Always."

The script lettering identifying each department is in neon lights, similar to that used by competitor Target in its Greatland and newer discount store prototypes.

Wal-Mart, which routinely does not comment on its many test programs, appears to be experimenting with different ways of grouping related product categories in shop-type formats. The Leisure department, which includes toys and sporting goods, is also accentuated by a special Electronics shop, which has its own neon sign and grid entrance.

Grouped together in Fashion are all the apparel categories, jewelry, cosmetics and footwear. Home Decor includes housewares, domestics, hardware/home improvement and consumables. The Drug Store features a full-service pharmacy, optical center and expansive health & beauty care offerings.

Some aspects of Wal-Mart's hypermarket concept are evident in this store, including an expanded snack bar with fresh bakery, warehouse-type ceiling with large halogen lighting, one-hour photo minilab, and multiple entrances. Shoppers can enter through either of two main entrances along the front of the store.

The Palmdale store also features large attached garden and auto service centers.

Another new feature is the use of cubed, mini-vignettes situated high on walls above various merchandise offerings. In domestics, the boxed vignettes contain mannequin torsos holding groupings of coordinated bathroom towels and accessories. Larger-than life cardboard sculptures of palettes, paint brushes, pin cushions and spools of thread draw customers into Wal-Mart's crafts department.

The Palmdale storefront is also a departure for Wal-Mart. The store name in white serif letters stands out boldly on a blue background, rather than the standard sans-serif white letters with brown backing. A five-pointed star replaces the standard hyphen in the word Wal-Mart on the Palmdale sign. Exterior entrances to Garden and Auto centers are similarly bold with green (Garden) and yellow (Auto) backdrops.

PHOTO : Wal-Mart, Palmdale, Calif.: The chain is quietly testing a new 143,000-sq.-ft. format in a state where major expansion is underway.

PHOTO : Wal-Mart, Palmdale, Calif.: Displays of coordinated merchandise loom over the domestics area, above. At right, colorful neon sign welcomes shoppers to the Home Decor department and grid with neon Electronics sign forms a separate entrance to CE area.