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The New York Post reports that Wal-Mart, looking to jump-start its urban expansion strategy, may turn to its Neighborhood Market format as the best tool with which to grow.

Such a strategy, according to reports, would allow the company to both get around concerns about big box store development in cities like Chicago and New York, as well as directly address the potential threat posed by Tesco’s Fresh & Easy Neighborhood Market format, scheduled to begin its rollout in California, Arizona and Nevada later this year.
KC's View:
The Post must be reading MNB.

Just last week we wrote:

We still think that what Wal-Mart needs to do is focus on some alternative formats that might let it grow in new ways, like its Neighborhood Market format. Or maybe it should look at the convenience store or drug store channels for other opportunities.

The ROI might not be the same, but the chance for expansive and pervasive growth might compensate for that.

Furthermore, we have long believed that Tesco’s entry into California with a small-store format could easily result in a new emphasis by Wal-Mart on its Neighborhood Market growth plans, which have never taken off to the extent that we expected.