Wal-Mart CEO Seeking 23 New Chicago Stores
CHICAGO (STMW) -- Wal-Mart's U.S. CEO Bill Simon confirmed Wednesday that his company sees Chicago as a prime market to grow and plans to open 24 new stores of three different sizes.
During a presentation to analysts at Wal-Mart's headquarters in Bentonville, Ark., Simon said plans include more Supercenters, which are now smaller than in the past: 180,000 square feet, down from 195,000.
Wal-Mart also wants to open so-called Neighborhood Markets, which measure between 30,000 and 60,000 square feet. Finally, Simon wants to open smaller stores, which Simon didn't describe, but analysts have said will likely measure 10,000 square feet.
Simon didn't give a breakdown of how many stores of which size the company hopes to open in Chicago.
To date, there is one Wal-Mart in the Austin neighborhood. Two additional stores have received approval from the City Council.
With the upcoming retirement of Mayor Daley, a strong supporter of Wal-Mart's expansion in the city, the company's future plans here are not guaranteed, however. The City Council, which blocked expansion for years until a deal was made with organized labor, will have to approve any and all new stores.
Jorge Ramirez, president of the Chicago Federation of Labor, said Wal-Mart agreed to pay workers at its new Chicago stores 50 cents more than Illinois' minimum wage.
"The entire city will be watching to determine just what kind of corporate citizen (Wal-Mart) plans to be in Chicago," Ramirez said.
Wal-Mart also is expanding to Chicago, starting Wednesday, its program that lets shoppers buy products online at walmart.com and have them delivered for free to nearby FedEx locations, Simon said.
Wal-Mart is gaining traffic and sales from households that make more than $70,000 annually, as shoppers look for bargains amid job uncertainty and high unemployment.
"We believe by focusing on these customers, there is a huge opportunity for us to grow in the near term," Simon said.
Wal-Mart also wants to increase spending from its core customers — those who make $30,000 to $70,000.
For the holidays, the retailer will set up a Santa's Gift Shop to showcase the "best toys of the season," feature weekly price "rollbacks" on toys and will sell the iPad in 2,500 stores nationwide.
(Source: Sun-Times Media Wire © Chicago Sun-Times 2010. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
