Abstract
The three largest discount chains, Kmart, Target, and Wal-Mart, have adopted the supercenter format for expansion. This article examines the locations of and the competition among these supercenters. Wal-Mart has the greatest number of supercenters and is driving the expansion of the supercenter format. Both Kmart and Target have clustered their supercenters in a small number of metropolitan markets. In contrast to Wal-Mart and Kmart, Target has focused on a middle-class rather than a blue-collar clientele. Now Kmart is struggling following a declaration of bankruptcy. Wal-Mart has largely defeated its supercenter competitors and now is confronting the major grocery chains for grocery sales.
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Sources: CitationAnnual Industry Report (2003); CitationAnnual Retailer Ranking Report (2001); Top 150: Annual CitationIndustry Report (2004).
Source: CitationNowhere to Hide (2001).