Walmart Neighborhood Market in Homestead by Fall 2013

The old Chevrolet-Cadillac Dealership site on Kings Highway and NE 12th Ave was demolished to make way for the Walmart Neighborhood Market.  This Supermarket will be in direct competition with Publix, Sedanos, and Winn-Dixie.  All these locations are somewhat equidistant from the new Walmart location.  The residents of the area will benefit from having a new supermarket in close proximity providing competitive prices to establish its repeat customer base.  No longer will residents have to trek to Florida City Walmart to get their groceries as an alternative to Winn Dixie, Publix, or Sedanos.

According the Wall Street Journal , this is part of Walmart's new strategy to add Neighborhood Markets  to their portfolio with a goal of adding 95 to 115 stores in fiscal 2014 and end the fiscal year with a total of 240, up from 170 at the start of 2013.  These stores usually measure approximately 50,000 square feet in size.  By 2016 Walmart expects to have open 500 Neighborhood Markets by the end of fiscal year, generating more than $10 billion in sales. There is good reason behind the expansion according to Bill Simon, head of Walmart-US. He told the Wall Street Journal "They give us a competitive advantage".   Indeed it does, since adding the format allows the company to compete effectively against dollar chains, supermarkets and pharmacies.

In Homestead this means the competition better watch out especially those companies that don't differentiate much from Walmart's position in the market.  This spells trouble for  CVS, Sedanos, Walgreens, Winn-Dixie, and Publix to lesser degree due to their varied mid and higher end products and their  focus on customer service.  One word of caution for Walmart:  It may be its worst competition by cannibalizing its own Walmart Super Center in Florida City, especially the supermarket section by being able to provide faster checkout and a less overwhelming atmosphere at its new Neighborhood Market.

Reference Link

http://online.wsj.com/article/SB10000872396390443749204578048842451207454.html

http://southdadenewsleader.com/issue/south-dade-news-leader/article/wal-mart-expanding-reach-into-homestead