Following a visit to one of Wal-Mart China’s new Smart Choice stores, Planet Retail can reveal more about the retailer’s concept stores. The outlets are designed to attract value-conscious consumers in the economic slowdown and are loosely designed to be a small-box equivalent to Sam’s Club, trading from around only 300 square metres in size. Smart Choice sells only fast moving consumer goods and there are around 2,000 SKUs in the store. The new concept epitomises a low-cost retail model: its small size saves on rent and the unit is decorated in a fairly spartan fashion. The units feature deep shelving and there is a strong focus on shelf-ready packaging. Many products are in multi-buy packages with further discounts and the retailer tells consumers clearly how much they can save. Smart Choice has not introduced its own private labels but has some taken from the Wal-Mart Supercentre chain, including Mainstays, SIMPLYBASIC, and Great Value. Smart Choice will be tested for another season before it will be rolled out, according to the retailer. The first three pilot stores do not carry any Wal-Mart branding except for on staff uniforms and through private labels.
