Walmart plans to open 30 to 40 small- format stores in urban areas of the United States during fiscal 2012, according to Bill Simon, president and CEO of Walmart US.
At a meeting with analysts this week, Simon said the small- format stores include Neighborhood Market stores that sell food and consumer staples at a footprint between 30,000 and 60,000 square feet.
The smaller formats allow Walmart to compete in urban areas it could not fit into with its large- format supercenters, which average 185,000 feet. These smaller stores will also give Walmart an opportunity in rural communities too small to support a supercenter, he said.
Simon predicted Walmart will open between 185 and 205 new stores of all sizes in fiscal 2012.
He also told analysts Walmart will be offering more multi-channel options to customers, including ordering items on walmart.com that are delivered free of charge to urban Fedex locations.
By Christmas, he said 750 stores will offer customers the ability to purchase items online and pick them up at a Walmart store the same day.
Finally, he said Walmart is testing mobile check-out options that would allow customers to check out through their smart phones.
Corn price rise refuels ethanol debate
Groups opposed to and in support of corn ethanol subsidies sparred publicly today as a two-day, 15 percent rise in corn prices collided with a list of ideas floating around Washington that would enhance and extend ethanol subsidies.
Also in the mix: The Environmental Protection Agency is on the verge of ruling on expanding the use of ethanol in gasoline and the White House recently reconfirmed its commitment to supporting the ethanol industry.
On a media call this morning, leaders of the American Meat Institute, the National Chicken Council and the National Turkey Federation, the Grocery Manufacturers Association and other groups called once again for ethanol tax credits to expire as scheduled at the end of the year and railed against new ideas about how to subsidize the industry.
Specifically, AMI President and CEO J. Patrick Boyle and others denounced the concept of redefining corn ethanol as an advanced biofuel, which would expand its share of the Renewable Fuels Standard biofuel production targets. They also expressed concerns about any use of loan guarantees to build an ethanol pipeline, new domestic producer tax credits or extending blender credits.
The concepts are apparently being floated in Washington by pro-ethanol groups, but it is unclear whether any of them would find their way into proposed legislation or administration actions.
White House
Meanwhile, a White House blog on Friday reaffirmed the administration’s commitment to supporting ethanol production as well as other biofuels.
“As Congress examines options for extending the biodiesel and ethanol tax credits, the Obama Administration believes in continued financial support for biofuels that can help us meet our energy security and environmental goals. Stakeholders have put forward reform ideas that would provide continued support for first generation ethanol and biodiesel, while simultaneously accelerating the development of infrastructure and research, development, and rapid deployment of cellulosic ethanol and other advanced biofuels, which will be increasingly important in the years to come,” Deputy Assistant to the President for Energy and Climate Change Policy Heather Zichal wrote in the blog.
Renewable Fuels Association
The Renewable Fuels Association reacted in advance to the AMI-led teleconference, calling the food versus fuel debate a “red herring” in a statement and saying lower U.S. corn supplies are offset by increased foreign coarse grain production.
RFA also said distillers grains (a byproduct of ethanol) will displace more than 1 billion bushels of corn in domestic livestock rations this marketing year.
National Chicken Council Communications Director Richard Lobb and National Turkey Federation President Joel Brandenberger pointed out on the teleconference that distillers grain can only replace about 10 percent of poultry feed rations.
Rita Jane Gabbett
meatingplace.com
