January 18, 2013
Walmart Goes Back to School
Walmart is looking to learn from a new concept store it plans to open later this year on the campus of Georgia Tech in Atlanta.
The store, which at 2,500 square-feet will be the smallest Walmart in the country, is the chain’s second location to open on a college campus. Walmart opened its first Walmart on Campus store in 2011 at the University of Arkansas in Fayetville.
The new location will offer a pharmacy and sell basic grocery, general merchandise and health and beauty care items.
Steven Restivo, senior director of community affairs for the retailer, echoing comments made by Bill Simon, president and CEO, Walmart U.S. at the NRF BIG Show this week, told The Atlanta Journal Constitution, "We have become more flexible in our approach and, at the end of the day, want the store size and merchandise mix to be a reflection of the community."
Mike Duke, president and CEO of Walmart Stores, earned a bachelor’s degree from Georgia Tech in industrial engineering.
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Discussion Questions
Why do you think it has taken two years for Walmart to open its second on-campus store? Do you see this as a format with potential for significant growth in the years ahead for Walmart or other retailers? Would a c-store chain do just as well (or perhaps better) with the on-campus oppurtunity?
Poll
The value to Walmart in its on-campus stores is to expose their brand to another group of customers and through them hopefully to their families when they return home. The total sales and margins that can be achieved from having hundreds of such locations will not make any difference to its bottom line.
I don’t know why it has taken two years for Walmart to open its second college campus mini-store, but I suspect the company’s executives wanted first to make sure this concept would work out well. I don’t know that consumers automatically would flock to a very small version of a Walmart or Target store, because by definition and nature, these are not supposed to be small stores with limited distribution.
The small concept, in itself, might be a contradiction of the store’s own brand, so I think Walmart wanted to exercise expanding this concept with some caution, which they did, and apparently with some success.
College students are eating, drinking, and CPG spending machines. Whether a Walmart campus store or a C-store, the opportunity to target this market segment is extremely attractive.
Why so long? As a faculty member for over 40 years in a variety of settings from private to public from domestic to international universities, I can attest to the deliberate pace of academic decision making. Some would describe academia as moving at the pace of a drugged elephant. Those of you in the corporate world (where I came from) would be shocked by the process.
In December, I was in a meeting in which someone suggested that we should take up an important issue next year. I thought that was okay waiting until this January. However, the author of the “next year” suggestion indicated that next year was the next academic year beginning in the Fall.
My favorite saying is “faculty like to change the world, just not their world.”
Having said all of this regarding the process, the opportunities noted at the outset of this comment need to be kept in mind.
Walmart is looking for the next $1 billion dollar idea or channel and probably realizes that this is not it. It may be several hundred million, but not big enough to matter in the scale of things. Therefore it gets pushed down the priority list.
It depends on the mix of SKUs that Walmart assorts as to wheter it would under or out perform a c-store.
The two years is probably just a result of “not in a rush.” I guess the answer is “it depends.” Pick a region and put in the “best in class” c-store on campus. Of course, it would have to be without gas pumps, etc. Think Wawa, Sheetz, Casey’s on campus. Might as well do it since it looks like a lot of college foodservice ops are now going to established brand-name vendors.
At a certain level I resent the presence of fast feeders that are part of the campus dining facilities/campus meal plans. Not on principle, just that part of college is learning new things—like eating what the dining hall has, not what you want to eat! Also, gives these c-store chains or Walmart a chance to expose some bright kids to opportunities in retail careers!
As a retail merchandising student, this article attracted me and grabbed my attention immediately. I can’t grasp why it has taken Walmart so long to open its second on-campus store.
The age group they are attracting by adding an on-campus store is the millennial age group targeted right now in this economy. College students are spending ridiculous amounts of money, so adding the on-campus Walmart will do great things for the company. I definitely see significant growth for Walmart if they continue to add on-campus stores around the country which other retailers can also benefit and thrive from.
The small store format definitely will play a part in Walmart’s future. It isn’t so much about an on-campus strategy as it is about developing and opening smaller footprint stores where they make sense.
They cited a quote by Steven Restivo of Walmart’s Community Affairs as stating “We have become more flexible in our approach … want the store size and merchandise mix to be a reflection of the community.”
This speaks to Walmart’s long-term goal of developing new footprints that reach consumers looking for convenience and fill in shopping opportunities. It began with the Neighborhood Market, continued with Walmart Express and is expanding with their on-campus units.
Why 2 years? Probably because the initial effort didn’t excite anyone…except, of course, for the Walton family member (or other higher-up) whose pet project this is. I expect this scheme will die a slow, largely unlamented death…more successful than a Hummer unicyle would have been, but not quite what WM needed.
Campus Walmart stores are simply test beds for nextgen shoppers. The idea that WM is creating future customers comes second. Waaay second.
This can not be beat. Captive audience with little budgets and if Walmart can keep price low like the rest of their stores, success!!! College kids want junk food; pizza, cereal, pop tarts, cookies, fruit, water, gatorade, soda, etc.; simple stuff that can be targeted and merchandised correctly for a big win that may lead to future customers also. But really, I would say that 655 to 75% of the US population will be customers of Walmart for some part of their shopping (if you are in the great suburbia of America or anywhere more rural).
College students would seem to be a good target market for Walmart. Cash and time constrained, students crave convenience and cost savings on grocery and CPG products. Furthermore, Walmart’s lower prices and wider selection would give them an advantage over c-store competitors. Altogether, this would seem to be a good opportunity for them.
As to why it would have taken two years to open their second one, it could be question of the level of profitability of the first one, the desire to test and get the format just right before expanding, or the fact that academic institutions may move slowly when considering new concepts.
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The value to Walmart in its on-campus stores is to expose their brand to another group of customers and through them hopefully to their families when they return home. The total sales and margins that can be achieved from having hundreds of such locations will not make any difference to its bottom line.
I don’t know why it has taken two years for Walmart to open its second college campus mini-store, but I suspect the company’s executives wanted first to make sure this concept would work out well. I don’t know that consumers automatically would flock to a very small version of a Walmart or Target store, because by definition and nature, these are not supposed to be small stores with limited distribution.
The small concept, in itself, might be a contradiction of the store’s own brand, so I think Walmart wanted to exercise expanding this concept with some caution, which they did, and apparently with some success.
College students are eating, drinking, and CPG spending machines. Whether a Walmart campus store or a C-store, the opportunity to target this market segment is extremely attractive.
Why so long? As a faculty member for over 40 years in a variety of settings from private to public from domestic to international universities, I can attest to the deliberate pace of academic decision making. Some would describe academia as moving at the pace of a drugged elephant. Those of you in the corporate world (where I came from) would be shocked by the process.
In December, I was in a meeting in which someone suggested that we should take up an important issue next year. I thought that was okay waiting until this January. However, the author of the “next year” suggestion indicated that next year was the next academic year beginning in the Fall.
My favorite saying is “faculty like to change the world, just not their world.”
Having said all of this regarding the process, the opportunities noted at the outset of this comment need to be kept in mind.
Walmart is looking for the next $1 billion dollar idea or channel and probably realizes that this is not it. It may be several hundred million, but not big enough to matter in the scale of things. Therefore it gets pushed down the priority list.
It depends on the mix of SKUs that Walmart assorts as to wheter it would under or out perform a c-store.
The two years is probably just a result of “not in a rush.” I guess the answer is “it depends.” Pick a region and put in the “best in class” c-store on campus. Of course, it would have to be without gas pumps, etc. Think Wawa, Sheetz, Casey’s on campus. Might as well do it since it looks like a lot of college foodservice ops are now going to established brand-name vendors.
At a certain level I resent the presence of fast feeders that are part of the campus dining facilities/campus meal plans. Not on principle, just that part of college is learning new things—like eating what the dining hall has, not what you want to eat! Also, gives these c-store chains or Walmart a chance to expose some bright kids to opportunities in retail careers!
As a retail merchandising student, this article attracted me and grabbed my attention immediately. I can’t grasp why it has taken Walmart so long to open its second on-campus store.
The age group they are attracting by adding an on-campus store is the millennial age group targeted right now in this economy. College students are spending ridiculous amounts of money, so adding the on-campus Walmart will do great things for the company. I definitely see significant growth for Walmart if they continue to add on-campus stores around the country which other retailers can also benefit and thrive from.
The small store format definitely will play a part in Walmart’s future. It isn’t so much about an on-campus strategy as it is about developing and opening smaller footprint stores where they make sense.
They cited a quote by Steven Restivo of Walmart’s Community Affairs as stating “We have become more flexible in our approach … want the store size and merchandise mix to be a reflection of the community.”
This speaks to Walmart’s long-term goal of developing new footprints that reach consumers looking for convenience and fill in shopping opportunities. It began with the Neighborhood Market, continued with Walmart Express and is expanding with their on-campus units.
Why 2 years? Probably because the initial effort didn’t excite anyone…except, of course, for the Walton family member (or other higher-up) whose pet project this is. I expect this scheme will die a slow, largely unlamented death…more successful than a Hummer unicyle would have been, but not quite what WM needed.
Campus Walmart stores are simply test beds for nextgen shoppers. The idea that WM is creating future customers comes second. Waaay second.
This can not be beat. Captive audience with little budgets and if Walmart can keep price low like the rest of their stores, success!!! College kids want junk food; pizza, cereal, pop tarts, cookies, fruit, water, gatorade, soda, etc.; simple stuff that can be targeted and merchandised correctly for a big win that may lead to future customers also. But really, I would say that 655 to 75% of the US population will be customers of Walmart for some part of their shopping (if you are in the great suburbia of America or anywhere more rural).
College students would seem to be a good target market for Walmart. Cash and time constrained, students crave convenience and cost savings on grocery and CPG products. Furthermore, Walmart’s lower prices and wider selection would give them an advantage over c-store competitors. Altogether, this would seem to be a good opportunity for them.
As to why it would have taken two years to open their second one, it could be question of the level of profitability of the first one, the desire to test and get the format just right before expanding, or the fact that academic institutions may move slowly when considering new concepts.