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Walmart Starts Testing Urban Penetration With Walmart Express Stores

Posted on | July 28, 2011 | Comments Off

Wal-Mart Stores, Inc. (WMT) has identified urban markets as a growth opportunity and rejuvenate US comp sales. This week, it will open its first Walmart Express store in Chicago which should be a good test for the success of its penetration strategy using this smaller store format.

The stores are one tenth the size of the supercenter format. Walmart plans to open several new stores in the Chicago area in the coming year or so as well.

In the quarters ahead, I will be looking for any insight Walmart can provide that the Walmart Express store is performing. If Walmart can turn around the same store sales in the US, the stock will indeed jump quickly, likely into the $60+ range. This would be big for stockholders who have been patient for years.