As the biggest retailer in Canada (according to the Toronto Star), it’s inevitable that Walmart would notice demographic changes and reciprocate with strategic actions. Known for its everyday low pricing, Walmart now offers everyday low pricing for the Asian market as well. With ongoing demographic changes, Walmart had already stepped into the ethnic markets before by providing a small selection in their stores. Starting with the Steeles Ave. and Markham Rd. store however, where there’s a strong presence of Asian consumers, they’ve continued to expand their selection now more than ever. Just in time to celebrate the Chinese New Year, the Scarborough location at Steeles Ave. and Markham Rd. were the first to launch the plan.
“Earlier this month — and gearing up for Chinese New Year — the sprawling supercentre became the first Walmart in Canada to house an Asian bakery, fish market and butcher, catering to a large Asian population that comprises 40 per cent of the outlet’s clientele.” - Jayme Poisson of the Star
With the large Asian community surrounding the store and visiting the store, it does make sense for Walmart to initiate their ethnic-focused plan here. I’m actually interested to find out how much revenue they will generate from this new addition to the store.
Mass merchandisers, with Walmart as an example, are slowly moving in on specialty stores. With that I mean, these mass merchandisers are trying to attract the target market of specialty ethnic stores. From the article however, one customer quotes, “It could use a little more variety. It’s not 100 per cent what I want.” Although there may not be a variety (just yet!), Walmart has definitely added some more competition to its roster.
Adding to its strategy of everyday low pricing, it’s clear to see that Walmart is focusing their efforts on a one-stop-shop for ethnic consumers… but will it be a success? What do YOU think?
Reference: http://www.thestar.com/news/article/1120080--walmart-celebrates-chinese-new-year-by-catering-to-the-neighbourhood
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