Peter Kanelos, community affairs manager for the Bentonville, AR-based retailer, tells GlobeSt.com that the first Wal-Mart Neighborhood Market, a 42,000-sf to 55,000-sf grocery and pharmacy outlet, is expected to open at McKellips and Horne in 2004 with three other stores scheduled to quickly follow at Baseline and Lindsey, University and Higley, and Guadalupe and Hawes.

"It's not a mini-Wal-Mart," Kanelos said of the concept. "It's a small grocery store conveniently located that is meant to complement our super centers."

The stores, designed to be smaller than an average grocery store, will feature a wide variety of products, including fresh produce, deli foods, meat and dairy items, health and beauty aids, photo developing services, drive-through pharmacies, stationery and paper goods, pet supplies, and household chemicals. The stores will employ between 80 and 100 associates and offer about 28,000 items, all with that same discounted pricing that the retail chain has become known for.

Kanelos said a developer has not yet been chosen to build the new grocery outlets.The neighborhood market concept was first developed in 1998 after Wal-Mart surveyed its customers and found they wanted a convenient grocery and retail store that offered discount pricing. Kanelos said the neighborhood market stores have been well received in other areas of the country, where about 40 are currently in operation. The four Mesa locations, however, will be the first in Arizona, he said.

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