Walmart Tests Strategy which May Also Boost Amazon

Wal-Mart Stores Inc. (NYSE:WMT) is testing the waters of online merchandise in small stores — a strategy which may also work well for Amazon (NASDAQ:AMZN).

The usually ‘bigger is better’ retailer opened two small test sites in Los Angeles and San Diego. The 1,000 square feet stores will display online merchandise in the small stores. The merchandise will include products most likely to be given as holiday gifts. They include toys, big-screen TVs, computer tablets and home theater products, according to a MarketWatch article. Small items are available at the two stores such as 3-D glasses, remote controls and headsets.

The orders that are placed at the store will be shipped for free through a rebate program.

The stores opened last week. In a statement by Walmart spokesperson, Lorenzo Lopez said the company “will see how customers react and make a decision at the end of the holiday season” to see if it will expand the concept. This is a way to offer local customers easier and more convenient access to products on”

These aren’t the first small stores for the retail giant. Walmart  (NYSE:WMT) has smaller-sized stores including its 42,000-square-foot Neighborhood Markets, its 15,000-square-foot Walmart Express grocery stores and a 3,000 square foot shop on the University of Arkansas campus that caters to students with its sweatshirts and snacks merchandise.