[FRIAM] Bloglines - Where does Wal-Mart put new stores?

[qef@aol.com]

Greetings, all --

This may be of interest - akin to the convenience store/filling station 
model Frank Wimberly has worked with over the years, I believe.

Kindest regards,

- Claiborne Booker -



         Marginal Revolution
 Small steps toward a much better world.


         Where does Wal-Mart put new stores? By Tyler Cowen on Economics 


Wal-Mart has an incentive to keep its stores close to each other so it 
can economize on shipping. For example, to make this simple, just think 
about a delivery truck: If Wal-Mart stores are relatively close 
together, one truck can make numerous shipments; however, if the stores 
are spread out, you wouldn't have that benefit. So, I think that the 
main thing Wal-Mart is getting by having a dense network of stores is 
to facilitate the logistics of deliveries.

   There are other benefits, too. Opening new stores near existing 
stores makes it easier to transfer experienced managers and other 
personnel to the new stores. The company routinely emphasizes the 
importance of instilling in its workers the “Wal-Mart culture.” It 
would be hard to do this from scratch, opening up a new store 500 miles 
from any existing stores.

  ...Wal-Mart waited to get to the plum locations until it could build 
out its store network to reach them. It never gave up on density.

The placement of Wal-Mart stores has followed a spatial diffusion 
model. K-Mart, in contrast, scattered its stores across the country. 
Here is more. Here is a video showing the spread of Wal-Mart, well 
worth watching and short. It is the best single lesson in economic 
geography you will receive. Thanks to http://kottke.org for the pointer.