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Marts are generally a third the size of the Hypermarts. But as he tells his troops, "I'm more excited about this than anything in the
history of our company. This new store could revolutionize the way America shops."
A lot of competitors agree. Suddenly hypermarkets, which can cover five football fields, are springing up across the U.S. in
places as diverse as New Orleans and Kalispell, Mont. The oversize stores provide the ultimate in one-stop shopping: customers can
get a haircut, buy a refrigerator and stock up on paper towels in one trip. Most "malls without walls," as Walton calls them, draw
crowds with an old-fashioned lure: everyday discounts. Prices are reduced as much as 40 % below the full retail level. Hypermarkets
make money even at such thin profit margins because they sell such an enormous volume of goods. Hypermarket sales average at
least $1 million a week, compared with $200,000 for a conventional-size discount store.
While the idea of a store so big seems quintessentially American, the idea for hypermarkets comes from France. A small-town
haberdasher and a grocer, taking advantage of their country's lack of American-style supermarkets, teamed up in 1960 to start the first
hypermarket at an intersection just outside Annecy, in the foothills of the Alps. They named their store Carrefour, the French word for
crossroads, and it was an instant success. Their prices were so low that shoppers expected them to go out of business, a rumor they
gleefully perpetuated by keeping their front windows coated with whitewash. Carrefour launched dozens of outlets, as did copycats.
Today France has more than 600 hypermarkets that together account for some 14 % of the country's retail trade. Carrefour, which now
operates hypermarkets in Spain, Brazil and Argentina, plans to open its first US outlet this week, in suburban Philadelphia. Among
the store’s innovations: a rubbery floor surface to ease the punishment on shoppers’ feet.
While hypermarkets have spread across Canada, which has 22 such stores, they have only now become a hot concept tin the US.
One reason is that America has so many competing discount stores and supermarkets that the Carrefour concept had trouble gaining
acceptance. Analysists estimate that Bigg’s, a Cincinnati hypermarket opened by Euromarche, a French firm, has lost at least $9
million since it was opened three years ago. But the large U.S. chains believe they can make the idea work by selling namebrand
goods at paper-thin markups. К mart announced last September that it will form a joint venture with Bruno's, an Alabama-based
grocery-store group, to open a national hypermarket chain. Archrival Wal-Mart, meanwhile, hopes to open 50 Hypermart USA stores
during the next eight years.
Even successful hypermarket operators will encounter limits to expansion. The sheer size of the megamarkets will restrict
growth, since a city of 500,000 can support only about two stores. Also, hypermarkets may face disaffection from customers who
expect assorted brands of any one product; thus well-stocked hardware stores or grocers are unlikely to be run out of business by the
invading hypermart. Cases in point: Hypermart USA's sporting-goods department offers fishing poles but no lures or other tackle. The
paint department sells only one color: white.
The hypermarkets are doing their best to help shoppers feel comfortable in what is sometimes a disorienting space. Dallas'
Hypermart USA installed hot lines in its aisles so shoppers can get information and directions. Its bakery can churn out 20,000
tortillas a day. To make sure cranky toddlers do not prompt their parents to hurry too much, Hypermart offers a Ball Room, where
parents can deposit their children to be supervised. But anyone who wants to shop in a 200,000-sq.-ft. store should remember to don
jogging shoes. Says Melba Lincoln, a Dallas homemaker: "Shopping here is like running a marathon."
QUESTIONS AND ACTIVITIES
Comprehension Questions
1. What is a hypermarket? How much larger than a discount store is a hypermarket? What is the difference in volume of sales
between the two types of stores?
2. Where did the concept of hypermarkets begin? What countries already have them?
3. Why were hypermarkets slow in coming to the United States?
Discussion Questions
1. What are the advantages of a hypermarket for the consumer?
2. What are the disadvantages for the consumer?
3. Are there discount stores in your hometown? If so, do you shop at them? Why or why not? If not, would you like one to be
built? Why or why not?
Group Activities
In groups of four or five, compile a list of ideal features that you'd like a store to have. You may wish to consider the following
in your discussion:
A. Range of selection of merchandise;
B. Prices;
С. Hours and days of service;
D. Other amenities.
Present your list of features to the class.
Individual Work
Keep a diary for a day of the stores that you go into and what you do or purchase in each one. Do you tend to do all your
shopping in a few stores, or do you make many different stops? Write a brief summary (one page maximum) of your activities.
Grammar Revision
E x e r c i s e O n e
. Complete the sentences with
as
or
like
,
or put
as
/
like
if both are possible.
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