Walmart is working to fix a huge weakness, and now it's becoming a threat to Whole Foods and Trader Joe's
The Neighborhood Markets, as Walmart calls them, are smaller, closer to city centers, and carry only groceries and consumables. The stores are an attempt to elevate Walmart's reputation in the fresh grocery world.
It's paying off: comparable sales at Neighborhood Markets were up 7% in the most recent quarter, while overall sales were up only 0.6%.
The Markets pose a threat to traditional grocers like Whole Foods, Kroger, and Trader Joe's, according to Moody's Vice President Charles O'Shea.
O'Shea says the Markets have a distinct advantage over rivals because they can use Walmart's extensive supply chain. He predicts that they will eventually outnumber supercenters.
The company now has 656 Neighborhood Markets and more than 3,400 supercenters.
We visited a Neighborhood Market in Richmond, Virginia, to check out what it offers.