If and when Winning Brands handles the mess with Walmart Canada...17 new stores are waiting to stock the shelves...
Wal-Mart set to unveil up to 17 giant hybrid stores
TORONTO - Wal-Mart Canada Corp. will have up to 17 of its giant hybrid grocery stores open by the end of next year, executives said Tuesday at a preview of a Wal-Mart Supercentre in Stouffville, north of Toronto.
Three of the megastores, which combine a traditional Wal-Mart with an enhanced discount grocery store, have their grand opening in Ontario today, a move which one analyst predicted will have a ''dramatic and cascading effect through Canadian retailing.''
Tuesday's preview of the cavernous big-box outlet made it clear the retailer will threaten more than just grocers such as Loblaw Cos. Ltd. with its new format. With an expanded selection of electronics, hardware, home and housewares, Wal-Mart Supercentre could take a bite out of businesses as diverse as Future Shop, Home Depot, Home Outfitters and Shoppers Drug Mart.
''Our goal is to become the one-stop shop for customers,'' said Mario Pilozzi, chief executive of Wal-Mart Canada, gesturing at palettes of impeccable, unbruised produce.
''You see how fresh that is today? We are going to maintain that freshness in these stores.''
Fresh food is a lightning rod in Canada's grocery war. At Loblaw Cos., the quality of perishables suffered in the past year as the retailer quickly expanded its general merchandise offerings in anticipation of the Supercentre openings.
Wal-Mart has improved on its basic store format by making the new outlets more ''shoppable,'' widening aisles, improving the customer ''sight lines'' with higher ceilings and clear signage, centralizing the pharmacy department, revamping the fashion section and putting cash registers in selected departments such as electronics and clothing.
The retailer has also broadened its pricing spectrum, carrying everything from dollar store-goods to personal computers, iPods, and a $799 RCA flat screen TV. The perfume selection runs the gamut from Shania Twain's fragrance by Stetson to Romance by Ralph Lauren.
The new stores also feature a new marketing ploy in the form of ShopCast, an in-store television network that will be rolled out to the retailer's 280 Canadian locations by the end of the summer. Flat screen TVs suspended from the ceiling by the front cash registers continuously play one of the network's nine channels, featuring fashion shows of Wal-Mart's clothing lines, TV commercials featuring brands the retailer carries and corporate messages.
''We beat any discounter hands down on assortment,'' added Les Mann, vice-president of the food division at Wal-Mart Canada, who spent 10 years at supermarket chain Sobeys Inc. before joining Wal-Mart in 2002. Wal-Mart will also beat the advertised price of any deal offered by a competitor.
Pilozzi said Wal-Mart, which had previously announced it would open seven supercentres in Ontario by early next year, will open another five to 10 of them by the end of next year, depending on municipal approvals.
Analysts say Wal-Mart's Canadian supercentres are more sophisticated than their U.S. counterparts, because strong Canadian grocers, such as Loblaw, have created higher expectations among the average consumer. Canadian neighbourhoods with Wal-Marts are also more ethnically diverse than their U.S. counterparts. Wal-Mart plans to target prominent ethnic communities in the areas it serves with specialty food, entertainment and apparel.
