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Hypermarket
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Wikipedia
In commerce, a hypermarket is a superstore which combines a supermarket and a department store. The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise. When they are planned, constructed, and executed correctly, a consumer can ideally satisfy all of their routine weekly shopping needs in one trip.

Hypermarkets, like other big-box stores, typically have business models focusing on high-volume, low-margin sales. Because of their large footprints — a typical Wal-Mart Supercenter covers 14,000 (150,000 square feet), a typical Carrefour 19,500 m² (210,000 square feet) — and the need for many shoppers to carry large quantities of goods, many hypermarkets choose suburban or out-of-town locations that are easily accessible by automobile.

History

The format was pioneered by Carrefour upon opening its first such store in 1963 at Sainte-Geneviève-des-Bois, France, In the Americas, the Oshawa group introduced the first hypermarket in North America near Montreal in 1973.

The first hypermarket was introduced in the United States in 1987. In the 1980s and 1990s, the three major discount store chains in the United StatesWal-Mart, Kmart and Target—started developing discount stores in the hypermarket format. Wal-Mart developed Hypermart USA and later Wal-Mart Supercenter, and Kmart developed Super Kmart. In 1991, Dayton-Hudson Corporation (now Target Corporation) expanded its Target Greatland discount store chain into Columbus, Ohio, where it learned that its general merchandise superstores were unable to compete against the Meijer hypermarket chain. In response, Dayton-Hudson entered the hypermarket format in 1995 by opening its first SuperTarget store in Omaha, Nebraska.

Success

After the successes of super- and hyper-markets and amid fears that smaller stores would be forced out of business, France enacted laws that made it more difficult to build hypermarkets and also restricted the amount of economic leverage that hypermarket chains can impose upon their suppliers (the Loi Galland). Large retailers for the most part work around the law by using loopholes. As of 2004, the Loi Galland has become increasingly controversial and there have been calls to amend it.

In Japan, hypermarkets may be found in urban areas as well as less populated areas. The Japanese government encourages hypermarket installations, as mutual investment by financial stocks are a common way to run hypermarkets. Japanese hypermarkets may contain restaurants, Manga (Japanese comic) stands, Internet cafes, typical department store merchandise, a full range of groceries, beauty salons and other services all inside the same store. A recent trend has been to combine the dollar store concept with the hypermarket blueprint, giving rise to the "hyakkin plaza"—hyakkin (百均) or hyaku en (百円) means 100 yen (roughly 1 US dollar).

In France, hypermarkets are generally situated in shopping centers (French: centre commercial) outside of cities. They are surrounded by extensive parking lots, and generally by other specialized large stores (for instance, selling clothing, sports gear, automotive items, etc.).

List of hypermarkets

France

Carrefour was the earliest hypermarket, starting in 1963 in Sainte-Geneviève-des-Bois. It remains the dominant chain in France, and worldwide is the largest hypermarket chain in terms of size, and second-largest (after Wal-Mart) in terms of revenues. Other important brands include Géant Casino (with 127 hypermarkets in France), Auchan, Leclerc, and Cora.

Italy

  • Auchan
  • Carrefour
  • Panorama
  • Ipercoop
  • Interspar (or Iperspar in some towns)
  • E.Leclerc-Conad
  • Iperfamila (or Emisfero / Galassia in some towns)
  • Pam Superstore (or Superal Superstore in some towns)
  • Ipersimply SMA (or Cityper SMA in some towns)
  • Esselunga Superstore
  • Bennet
  • Iperstore GS
  • Il Gigante
  • Iperpellicano
  • Iper
  • Iperstanda
  • Ipersisa

United Kingdom

United States

Stores in the United States tend to be single-level enterprises with long operating hours; many of them, especially Wal-Mart, are continuously open except on major holidays (typically Thanksgiving and Christmas). There is some controversy to hypermarts in the U.S., with opposition coming primarily from preservationists who argue that they destroy conventional retail districts, including independent grocers and supermarkets and downtowns. Hypermarkets have been most successful in northern states where adverse winter weather conditions make it inconvenient to visit multiple stores.

Defunct U.S. hypermarkets

Source

Canada

  • In Canada, Loblaw's operates the Real Canadian Superstore, Atlantic Superstore and in Quebec Maxi & Cie. Wal-Mart has been operating stores in Canada since 1994. Initially, Wal-Mart stores offered only dry goods with very few basic groceries (mostly candy, with some snacks and staples), but in more recent years has included a larger selection of grocery items in their stores. This includes an aisle or two of refrigerated and frozen goods. As of 2006, the majority of stores have been modified to reflect this change. However, in 2006, Wal-Mart began building larger stores similar to the Supercenter format in the United States. The first three opened in Ancaster, London, and Stouffville in Ontario, with another 14 projected to open across Canada by the end of the 2007. A number of existing stores may be expanded to reflect this change, where space allows.

Other countries

Warehouse club

Another category of stores sometimes included in the hypermarket category is the membership-based wholesale warehouse clubs that are popular in North America, pioneered by Fedco and today including Sam's Club, a division of Wal-Mart; Costco, in which Carrefour has a small ownership percentage; and BJ's Wholesale Club on the East Coast. In Europe, Makro leads the market. However, warehouse clubs differ from what is normally considered a hypermarket because of their sparse interior decor, restrictive membership, and broad-not-deep selections that maximize inventory turnover.

Notes

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