This video from the Financial Times takes a look at Wal-Mart’s new small-format Marketside stores, and their close competitor Tesco’s Fresh & Easy. The analysis of the two stores is interesting: Marketside looks more polished, whereas Fresh & Easy focuses on house-brand bargains. But the most interesting - and perhaps saddest - part of the video is hearing customers’ explanations of why they like the new small format stores:

“It’s kinda like a small grocery store,” one man says. “I kinda like the idea of the local markets instead of great big stores you’ve got eight million people in.”

That is, customers are attracted to these markets because they’re like the local grocery stores Wal-Mart so frequently puts out of business. After years of flocking to Supercenters, these consumers have realized the value of shopping close to home, though still seem unwilling to support real locally-owned businesses. Marketside has all the appeal of a local store with none of the benefits: money spent there doesn’t stay in the community and its owners have no incentive to treat employees well. Wal-Mart seems to be capitalizing on the very holes its own business model has left in the retail landscape.

Big box stores go small [Financial Times]

Back in April, the Denver Post conducted a survey of grocery prices at Wal-Mart supercenters in several Denver neighborhoods. Over a number of weeks, the survey found Wal-Mart charged more for groceries at its stores in low-income neighborhoods than in higher income areas. As the article noted, “It’s not cheap being poor.”

A survey done recently in Florida corroborates those findings. WKMG in Central Florida went to several Wal-Mart stores in neighborhoods of varying income levels and found consistent price disparities at each. In each case, products were cheaper in higher income areas.

This trend points to a pricing scheme that takes advantage of lower income shoppers who can’t afford to drive to a competing store for groceries. Wal-Mart might claim to help people “Save Money” and “Live Better,” but there’s nothing charitable about taking advantage of consumers already struggling to get by. To those of you with multiple Wal-Marts in your area: have you noticed this trend?

Wal-Mart Price Discrepancies Investigated [WKMG-TV (Fla.)]

Apparent cost discrepancies at Central Florida Wal-Mart stores were investigated after the Problem Solvers received a tip from a viewer alleging different prices for the same items.

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