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Exclusive RT Coverage: Neighborhood Market sports new look
By Mike Troy,
DSN Retailing Today
Wednesday, January 17, 2007
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Wal-Mart this morning introduced a new Neighborhood Market prototype store here that features major upgrades to the deli and health and beauty departments, a new color scheme and a host of other subtle changes.
Changes are evident immediately upon entering the store as a deli counter and workspace have been reconfigured and the nearby Grab ‘n Go section has been eliminated where customers used to pay for coffee, newspaper and donuts using an honor system.
The deli counter is now long and straight and set at a 45-degree angle in the front corner to create a more dramatic visual effect and the products found in the Grab ‘n Go area are the same but the department is now called, "Shop Refreshed.”
“It makes for a more impressive and dramatic presentation,” said Pam Kohn, senior vp of the Wal-Mart Stores southeast division and leader of Neighborhood Markets for the company. “If you went in one of our other Neighborhood Markets things were a little more chopped up. This configuration is easier to keep clean and neatly merchandised and we were able to simplify the work space as well.”
The upgraded appearance of the deli benefits from other nearby merchandising changes as well. For example, loaves of artisan breads selling for $2.88 are merchandised in wicker baskets on wire fixtures trimmed in wood.
“The fixtures are more befitting of the quality of the product,” Kohn said.
That is certainly true in the health and beauty department where a major advancement in the presentation of products has been made over what was previously offered in earlier Neighborhood Market stores. Wal-Mart sought to create a more inviting department so it employed gondola runs that have a slight curve to them and feature endcaps that are slightly wider at the top than they are at the bottom. The key feature of the department is an area where two curving fixtures face each area and the space in the center is devoted to two towers where higher-end skin and cosmetic products are merchandised.
“Our health and beauty department has probably undergone the most dramatic change within the store. We want our female customers to feel this is a place in their store created especially for them,” Kohn said.
Near the health and beauty department and pharmacy is a new card and party section where the assortment has also been expanded to include a 12-foot section of party essentials and accessories.
In the dry grocery area, fewer changes are evident but the store does incorporate a merchandising device Wal-Mart refers to as a “bump out,” that was used in its upscale store in Plano, Texas. It is essentially a section of standard 4-foot shelving with a subtle arc to it so it extends into the aisle about 6 inches.
“It enables us to call out some of the special items so it is easier for the customer to see the assortment and variety we are carrying,” Kohn said.
While the look of key departments and the store's color scheme and signage are different, the strategy behind Neighborhood Market remains the same. The format is still intended to complement the company's supercenter format by serving as a convenient alternative for customers who only need a few things or are looking for a faster shopping experience. The pricing strategy is also the same.
“We will be the low price leader. That is our golden rule,” Kohn said.
Companies referred to in story:
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