Walmart's "Store of the Future": Evolution or Revolution?

Walmart has debuted a new store of the future down in Texas.

According to Chain Storage, the new Supercenter is located in Cypress, Texas which is both its first ground up Supercenter in four years and the first new construction of store of the of a store of the Future in the U.S.

walmart plans to build or convert more than 150 stores to this new superstore model over the next several years.

Highlights of this new store include a full service fuel station with eight pumps serving serving up to 16 vehicles a modern pharmacy with a health service room and drive thru a refreshed vision center offering expanded services elevated departments in fashion, baby, home and pets an ability for customers to use the Walmart app to engage with the store including scheduling, TV mounting, enhancing registries or booking tire installations.

Something I love to do Storewide digital shelf labels and updated Walmart branding and QR codes throughout the store to unlock digital tools, resources and instant access to an expanded assortment.

Ben, how much are you buying into Walmart's new store of the future moniker moniker for this new Texas installation Oh.

Man, I wish that was open a month ago.

So I went after spring I went down to Texas, spent some time with retail partners.

We did we shot some videos for our kind of grocery shop, an inside grocery shop series that we do doing so I'd have loved to have seen it in the flesh I guess.

What thoughts on this?

Number one, I'm amazed.

It's the first new ground up supercenter for four years that took me back but the recent remodel supercenters that I've been in are really good stores.

They're operationally, they're really well run, really consistent, strong operational standards.

What we've seen is the increased connection of linking those digital journeys from in home to in store that SAMs are doing and they're probably a little bit further along the journey with what they've done in Grapevine.

So that's really strong, you know, QR codes to unlock expanded assortments, getting people to drive in the app so you've got more app usage and then you can drive media sales for the app, you can drive Walmart plus et cetera.

So all makes sense.

You've then got the efficiency bit.

It's one of our big themes at the moment is is driving efficiency and engagement and the connection between the two.

So again there's a lot here they're talking about continued Rol a digital shelf edge labels that we talked about before.

So there's a lot that is positive I think, I think probably the interesting thing is, is this the store of the future concept?

I mean, you guys run futurelabs, you're better at this than I am.

For me, no, this is a store of now.

So this is a really good execution of what retail looks like.

And I think the watch out for me is if you've got, if there's other retailers who are looking at this thinking that this is sort of the future, then they're behind this is store of now.

And there's other things going on elsewhere in the Walmart estate.

To show you what some of the things in the future might be.

I agree.

This is the problem with the term and I don't know if Walmart's using this term or if the media is using this term, which is why we do what we do, which is this, this is not a store of the future.

It's the proto, it's essentially the prototype of the future.

Right, and that's what you're saying you're thinking too.

I can tell by the way you're nodding your head.

It's like, you know, it's not, it's not even that futuristic.

It's, you know, compared to what we saw in Canada, which was much more futuristic.

But even that is kind of a prototype of the future design.

It, it just seems like a pragmatic, you know, incremental evolution versus like a revolutionary store of the future idea.

At least that's my take.

And what do you think?

Do you, are we gonna agree on this one?

Are we gonna, yeah.

Are we gonna start off salty?

I don't like that I get called salty for just disagreeing.

I said we are gonna start off salty.

Okay, so you, I said we.

I, I think, I think you guys are right.

I just, it's just this is the new, new format stores for Walmart.

I, I think there's, especially at this Texas location, it sounds like they're just setting up a store that will better allow Walmart to compete and to position itself, especially in Texas, with major competitors in the same demographic.

Like, like H E B.

I mean they're making their own tortillas in store.

They have a highly curated bakery.

Like maybe we'll see more grab and go food in this store that really allows Walmart to be in that same consideration set that you're getting from other major players in that Texas market.

And I think if this was a true store of the future in the sense that Chris, you and I learned when we were building Target, store of the future, it's like there's gotta Be more that's in, in test mode than there is like live in the physical store.

This to me is that concept that is just new, you know, the new format for Walmart.

If it was a store of the future, I would expect to see a lot more tests, like small scale tests going on than what we're seeing in the store and more on the side of consumer facing technology, associate facing technology, supply chain technology than what we're hearing about specifically in this format.

Yeah, 100%.

100% to be more concept work in terms of different things that they're trying to see if they can change the operating dynamics of the business model itself to squeeze more, you know, profit and sales out of, out of the operation.

So yeah, 100%.

And that's the other thing too.

I imagine they're doing all kinds of things with employee tools and technologies, you know.

Right.

But they're probably doing that across the chain already and they've probably talked about that a little bit, but I surprised that that wasn't more pronounced in the announcement, so to speak.

Right, yeah, it's something that they talked about at Shop Talk.

So Cedric Clark's interview, the evp and talked about the store app that they're using and how they're unlocking efficiencies.

So yeah, I think we know it's happening.

And I think, look, it's.

The supercenter format is such a solid format, you would not want to be competing against that store.

I think it's just not a futuristic concept bringing new things we haven't seen before.

Rather, it's the latest iteration of lots of really good things that they're putting together into one space.

Yeah, it's a Walmart makeover.

I mean, it really is.

That's what, when you, when you look at it, it's like, oh, Walmart's had this glow up and this is a new store.

We're gonna, we're attracting a new demographic.

We're gonna show them that experience when they step foot into the box versus just, you know, what their previous preconceived notions were of a Walmart store.

Yeah, right.

Meanwhile, I walked into my local Target yesterday and like I've, I've got pallets down every aisle and there's like floral forests.

As I enter the store, I'm like, what the heck is going on here?

This looks really different.

But anyway.