The Locations of Wal-Mart and Kmart Supercenters: Contrasting Corporate Strategies

Abstract

Wal-Mart and Kmart, the two largest American discount retailers, have begun to utilize a supercenter retailing format that combines a full-service grocery store with a discount department store. Supercenters are expected to be the major format for future expansion of each of these firms. The purpose of this paper is to analyze the spatial expansion strategies of each firm for the locations of its supercenters. Wal-Mart is quickly expanding its number of supercenters in modest-sized communities clustered around its grocery distribution centers, especially in Southern states. Conversely, most Super Kmart Centers are located inthe suburbs of widely scattered major metropolitan markets, and Kmart has yet to develop a grocery distribution network. Kmart currently has major financial problems that severely restrict the expansion of the Super Kmart Center format.

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