Dive Brief:
- Walmart plans to test a new strategy for remodeling its Neighborhood Market locations that involves closing the main sales floor for about four weeks instead of working on sections of the store incrementally over several months.
- The test, which is set to start next month, will involve an unspecified number of Neighborhood Market stores in Florida, Georgia, Louisiana, Oklahoma, South Carolina and Texas, Walmart said in a blog post last week. The pharmacies and fuel stations at the stores will remain open while the upgrades take place.
- Walmart described its decision to try temporary four-week closures as “an opportunity to test, learn, and refine our remodel process to identify best practices for the future.”
Dive Insight:
Walmart said proximity to its other stores was a key factor in selecting the locations for the test. The retailer noted that shoppers will be able to place orders online for pickup at those stores while the upgrades are in progress.
The company said it hopes the process it is testing will be less disruptive to customers and take less time to complete.
“We know that shopping around closed construction areas or searching for relocated items can be frustrating for our customers,” Walmart said in the post. “While we try to minimize that friction with every remodel, these four-week temporary closures aim at going one step further. We want to alleviate as much customer disruption as possible and deliver a better store experience, faster.”
Walmart’s Neighborhood Market stores typically occupy approximately 40,000 feet — a fraction of the size of its traditional supercenters, which span more than 170,000 square feet on average and comprise the bulk of its fleet. The retailer opened its first Neighborhood Market in 1998 and operated 671 stores under the format as of April 30, 2025.
When the upgraded Neighborhood Markets reopen, they will sport better lighting and what Walmart described as a “more inviting space.” They will also feature improved grocery pickup and delivery areas for online orders as well as refreshed pharmacies.
In addition, Walmart plans to install electronic price displays, upgrade checkout areas to move people through faster and add tools to help employees find products. Some of the stores Walmart selected for the test will also gain reconfigured layouts and expanded aisles, Walmart said.
