Walmart recently opened its first Walmart Express store, in Arkansas, and it seems like the concept could be a welcome addition to the retail landscape, especially for landlords fighting a battle with vacancy problems.
At 15,000 square feet, the Express stores are obviously much smaller than their 100,000-square-foot Superstore counterparts and are geared toward urban areas and rural spots that aren't near supermarkets.
The retailer plans to open 12 by the end of the year. We're assuming the Arkansas opening is an example of a rural location and the two it will open in Chicago are the urban examples.
Knowing Walmart's past expansions, we doubt only 12 will be in the works for next year and expect a pretty major roll out. This is especially true because these new Express units are seen as competitors to the dollar stores chipping away at the Walmart's sales growth.
It's tough to bet against Walmart, but we see a potential problem going forward -- the retailer is a little late to this game. Dollar General and its competitors are expanding like crazy, and the convenience-store segment, which also seems like a somewhat similar concept, not to mention today's chain drugstores, have a big presence in this space.
But for a landlord looking to fill a 15,000-square-foot space, there's no denying that Walmart is a credit tennant.
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