Smaller May Not Be Better for This Dow Heavyweight


Wal-Mart was the biggest gainer in the Dow in July, rising almost 7%. Despite the scandal in its Mexican operations, investors seem to be bullish on the company's prospects.

One exciting aspect of Wal-Mart's future growth is the possibility that the retailer best known for its giant superstores and thousands of SKUs may be venturing into smaller formats. As The New York Times points out, Wal-Mart has been opening three different store formats: large supercenters, small Express stores, and medium-size "neighborhood markets" in places such as L.A. and Chicago. Can Wal-Mart outperform more seasoned urban retailers in these important new markets?

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The article Smaller May Not Be Better for This Dow Heavyweight originally appeared on

Catherine Baab-Muguira and Lyons George have no position in the stocks mentioned above. The Motley Fool owns shares of Whole Foods Market. Motley Fool newsletter services recommend The Fresh Market and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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