The new Wal-Mart stores will be immediately fighting existing convenience stores and the larger grocery chains for market share in established neighborhoods, food industry newsletters report.
Wal-Mart wouldn't comment on its strategy or disclose plans to open other Florida mini-stores. Besides groceries, the Neighborhood Markets will sell health and beauty products, offer photo processing and have a drive-through pharmacy. The small stores may also sell gasoline.
The 55,000-sf, $4 million stores in Seminole County are expected to open first quarter 2003 at Red Bug Lake and Dodd Roads near Winter Springs, FL and Alafaya Trail and McCullough Road near the University of Central Florida's 35,000-student campus in east Orange County.
Construction industry estimators tell GlobeSt.com the stores will probably be built at a hard construction cost of $75 per sf.
The 200,000-sf Wal-Mart Supercenters in Orlando and nationally will continue to sell groceries and are not expected to compete with the neighborhood stores, industry consultants tell GlobeSt.com.
"Convenience stores established by oil companies and others have long been known as cash cows," a food industry consultant tells GlobeSt.com on condition of anonymity. "Wal-Mart, as the world's biggest corporation, is only now getting around to that realization and deciding the smaller stores could be a new revenue generator and dividend-producer for its shareholders."
Wal-Mart has 31 Neighborhood Markets. About 100 employees will work at each of the metro Orlando stores.
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