Copyright 2009 States News Service
States News Service
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Copyright 2009 States News Service States News Service |
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August 11, 2009 Tuesday
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327 words
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| SAM'S CLUB TESTS BIG-BOX BODEGA |
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States News Service
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HOUSTON -
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The following information was released by the National Association of Convenience Stores:Walmart's new Latino-themed warehouse store, Mas Club, opened in Houston last week, part of the company's effort to target the nation's fast-growing Latino demographic while sparking overall sales for its Sam's Club stores, The Wall Street Journal reports. Walmart has also begun testing a business-focused Sam's Club as well as a bodega-like Supermercado that also caters to Latinos.Walmart's effort to enter the Hispanic market comes after several large grocers tried and failed with similar ventures. Safeway Inc's Vons supermarkets launched Tiianguis more than two decades ago, a pioneering effort that proved unsuccessful.Grocery experts say that Walmart faces "stiff competition" from bodegas and mid-sized grocery chains, including Texas's Fiesta Mart Inc., in a crowded Latino grocery field."The question becomes, what can Walmart offer that is not already being offered by a friendly face?" said Bob Reynolds, a former Safeway executive and food industry consultant.Walmart said that it is also using the Mas concept to learn how to customize local Sam's Club stores."There is an opportunity for Sam's Club to expand its membership base through Mas Club," said Kenny Folk, Sam's Club senior vice president of new business development. "We expect Mas Club to evolve as we get to know our members better. They will help us decide how fast and how far this format goes."Mas Club charges a $30 fee to members, less than the $40 fee that Sam's Club charges, for a Mexican warehouse-style food shopping experience, where a tortilla bakery, 20 varieties of Mexican pastries, and butcher shops that sell cow tongues will be the norm.Mas Club also targets Latino business owners, with an attached warehouse where small business owners can purchase roughly 500 of the store's 3,000 items by the pallet, a concerted effort by Walmart to steer them away from smaller wholesalers.
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August 11, 2009
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