Here Come Malls Without Walls

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While hypermarkets have spread across Canada, which has 22 such stores, they have only now become a hot concept in the U.S. One reason is that America has so many competing discount stores and supermarkets that the Carrefour concept had trouble gaining acceptance. Analysts 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 name-brand goods at paper-thin markups. K 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."