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Check out this week’s issue of the Wal-Mart Watch Weekly Update for Elected Officials – a compilation of Wal-Mart news from across the country and beyond.

This week’s issue focuses on Wal-Mart and the current economic crisis. You’ll find stories on how Americans are shifting to thrift stores in order to save money, and whether September’s retail sales figures reflect a downturn in consumer spending. You’ll also find an article from CNN Money discussing whether the state of the economy will affect Wal-Mart’s hiring, especially with the holiday season coming up.

In addition to the economy, you’ll find stories on Wal-Mart’s move to small stores. Are Wal-Mart’s Marketside Stores the wave of the future? And in health care news, Wal-Mart is rolling out electronic personal health records to all of its employees, and has announced changes to its health plan for 2009.

And finally, check out our “Stateside” and “Wal-Mart International” sections to find out what’s going on with Wal-Mart around the country and across the globe.

Wal-Mart Watch Weekly Update for Elected Officials [October 10, 2008]

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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]

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The Financial Times brings news that the Building Dept. of the City of Mesa, AZ. has posted on its website some of the first photos of Wal-Mart’s new “Marketside” stores. The stores signal a departure for Wal-Mart, as they are significantly smaller than the retailer’s traditional format and designed to compete head-to-head with UK retailer Tesco’s “Fresh and Easy” markets.

Marketside’s small format isn’t the only thing that distinguishes the pilot program from other Wal-Mart stores. Marketsides have completely independent design elements and don’t mention the word “Wal-Mart.” From the Financial Times:

The design includes a natural wood finish around the entrance, and deep-purple awnings - the same colour that will be used on the aprons of the staff, and on its website, http://www.marketplace.com. The Marketside name appears in lower case green lettering, with no reference to its parent company.

As Wal-Mart nears the U.S. saturation point for its traditional stores, the company has been forced to evolve into alternate formats. But Marketside’s distinct branding implies the company is worried customers have had enough not only of Supercenters, but of Wal-Mart itself.