Walmart Shutters Its Marketside Stores

Marketside locations

Walmart has reportedly given up on Marketside, its experimental small grocery stores featuring prepared meals and fresh food.

The company launched the format in 2008 with stores in Mesa, Chandler, Gilbert and Tempe, Arizona, hoping to recreate the "bodega" feeling that characterizes many small mom-and-pop stores in urban areas.

Just what went wrong isn't known but Mouth by Southwest, a regional publication, reports that the Arizona stores will close next Friday, Oct. 21.

Walmart continues to operate a handful of Walmart Express stores in test markets in North Carolina, Arkansas and Chicago.

It is also experimenting with a concept called the Walmart Neighborhood, about twice the size of Marketside stores and emphasizing low-cost groceries, prescriptions and household products.  It opened its newest Neighborhood store in Orlando earlier this week.

“With our smaller format, our store is perfect for those on the go. Whether they’re stocking up or need to pick up just a few items, our customers will be able to find what they need quickly and easily,” said Orlando store manager Paula Heath. “Our customers will be able to find familiar brands and local products at great values, right in their own neighborhood.”

Sour economy

The Marketside stores perhaps fell victim to a sour economy that is making consumers less prone to spend a few more dollars on convenience and time-saving products and services.

As far back as June 2009, Walmart was cautioning that it was proceeding cautiously with the concept.

“We’re pleased with it, but at this point in time given the current condition in the marketplace … we are not accelerating that effort until we have better data to make a decision,” Walmart Vice-Chairman Eduardo Castro-Wright told reporters after the retailer’s annual meeting, Reuters reported.

Britain's Tesco has been experimenting with a similar concept in the U.S.  Called Fresh & Easy, the stores are similar to Walmart's Marketside, emphasizing fresh produce and prepared foods.  Tesco said last month that it would open six stores in the Sacramento area next year, in addition to 13 stores already operating in California.