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Monday, February 13, 2012

New Wal-Mart Supercentres Present Challenge To Existing Grocery Chains

01/24/2007  | CityNews.ca Staff

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New Wal-Mart Supercentres Present Challenge To Existing Grocery Chains

Play word association with the name 'Wal-Mart' and you're likely to get two different reactions.

Many shoppers would respond with the terms 'cheaper' or 'bargains'.

Competitors might say 'trouble'.

But up until Wednesday, not many in the G.T.A. would use the word 'groceries'.

That's changing after the retail giant opened three new megastores here selling everything from fruits and vegetables to bikes and clothing.

The store at Eglinton and Warden opened at 8am and there were line-ups to get in. Wal-Mart was offering a series of opening day specials and there were plenty who responded to the come-on.

Some are looking forward to the convenience of having it all in one spot. "I can't keep going from store to store to store, so one stop, go, get everything done and then I can go home," praises Michelle Stewart, a busy mother of three.

But competing supermarkets, which are already feeling threatened by the presence of the monster chain, aren't looking forward to the financial clout of the world's biggest retailer.

"If you have a large store, then the only way to compete against the large store is to have another large store," advises consultant John Winter, "Their supercentres are of great quality, offering great choice and great advantages to the consumer."

Loblaws anticipated the coming behemoth by opening several supercentres of its own across the G.T.A.

But with this new entity, the escalating battle for your buck is reaching another peak. And it could get nasty.

Samir Kaupr runs a store in nearby Eglinton Square.  

" It will kill the sales for sure, because it's right across and the way they have opened it up and the publicity they do it, it's really a killer for the small stores."

Not that consumers care that much. They believe that when giants fight, the little guy wins. "If their prices are right and they have the right stuff, it shouldn't affect them," avers Coswell Johnson.

"For me, a consumer, I'm excited and I have to think about my budget," concurs Joy Hewitt-Williams. 

Wal-Mart has had the opportunity to fine tune their operations by opening three of the giant complexes in Ancaster, London, and Stouffville in November 2006.

The GTA locations are at Warden and Eglinton, Edgley Blvd. in Vaughan and Highway 7 and Airport Road in Brampton.

Even if competitors can match their prices, they may have trouble matching their convenience. All the new stores are open from 6am to midnight seven days a week.


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