25 years ago, Walmart changed the game — again.
Has Walmart ever been known to think small?
Most associates would answer “no” emphatically. But sometimes, thinking in a different direction can bring BIG results. Such was the case with the first-ever Walmart Neighborhood Market – which opened 25 years ago on Oct. 7, 1998, in Bentonville, Arkansas!
The stores were different, precisely because they were small. Compared to the Supercenter’s 200,000 square feet of space, the Neighborhood Market came in at a relatively compact 40,000 square feet – a choice then CEO David Glass hailed as designed to ‘fill in the gaps’ for Walmart shoppers, bringing convenience ever-closer to home. That same thinking continues to drive the business forward today. Look at pickup and delivery!
Handsome green vests
The new store format certainly had associates excited.
It featured a different variety of items than traditional Supercenters, with greater focus on grocery. The smaller space let associates engage more directly with customers.
In contrast to a Supercenter, which carried around 200,000 SKUs, the Neighborhood Markets carried closer to 23,000 SKUs at the time of launch. Then there was the new wardrobe.
Associates were given what David Glass notably called “handsome green vests,” designed to set the store format apart visually. Though the green vests are now a thing of the past, associates at the time told Walmart World they were excited to step outside the classic blue and forge a new path to high fashion at Walmart. What do you think? Are you green with envy?
Another new retail experiment
At the core of Walmart’s innovation is experimentation. The Neighborhood Market format was a new experiment to fill a different need. Quite literally, the Neighborhood Market was designed and built to feel like – spoiler alert – a neighborhood market!
“We’re excited about testing this new format,” David Glass said in 1998. “They will serve as laboratories for our merchants to experiment with our merchandise mix and assortment.”
So, did the experiment work?
Another retail success
Just like the Supercenter and Sam’s Club before it, the Neighborhood Market would prove to be another successful experiment. Now, 25 years later, the format thrives. In an interview with Walmart Radio, Kelvin Buncum, the executive vice president for Neighborhood Markets in Walmart U.S., said the format is still serving as a testing ground for innovation!
“With nearly 700 stores across the country, the format has allowed Walmart to try new things and tailor our offerings to meet the unique needs of each community we serve,” Kelvin said. “This has allowed our merchants to experiment with different product mixes and assortments, as well as new technologies and services! The result has been a more personalized shopping experience for our customers, and a more nimble and innovative Walmart.”
Kelvin was sure to point out that, yes, a smaller store really can offer advantages.
“The smaller stores have certainly proven a success, providing customers with the convenience of a neighborhood grocery store while still offering a wide selection of products and competitive prices,” he said.
Ultimately, as with all things Walmart, the Neighborhood Market would never have seen such success without the dedication and drive of all the associates to have stepped through its doors in the last two-and-a-half decades — with or without those handsome green vests.
“None of this would be possible without the dedicated and hardworking store associates who have made Walmart a trusted and respected name in every community we serve,” Kelvin said. “Our team is proud to be at the forefront of change and taking care of communities across the country and will continue to do so for many more years to come.”
