Krispy Kreme Partners with Wal-Mart

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Krispy Kreme Partners with Wal-Mart

CHARLOTTE, N.C. -- Krispy Kreme Doughnuts plans to open one of its doughnut-making retail stores within a Wal-Mart Stores Supercenter in Mt. Airy, N.C., as part of a test with the retail giant, a spokeswoman said.

Krispy Kreme spokeswoman Brooke Smith told Dow Jones Newswires that the Winston-Salem, N.C., doughnut chain expects to open one of its so-called factory stores, which typically produce hot doughnuts in front of customers, around mid-October.

Also that month, Krispy Kreme plans to open shops within four other Wal-Mart stores in order to test the doughnut chain's various store formats. Two will be "doughnut and coffee shops," which have smaller footprints but deliver hot doughnuts and coffee, and two will be "fresh shops," or outlets selling doughnuts delivered to the store daily from a nearby Krispy Kreme store.

The company, not a franchisee, owns the rights to develop Krispy Kreme stores in the Mt. Airy market, which is northwest of Winston-Salem, Smith said. Other test outlets are also in markets where Krispy Kreme owns development rights for its stores, she said.

Krispy Kreme chief marketing executive, Stan Parker, said the factory store in the North Carolina Wal-Mart will be about 1,800 square feet and located in the same area as the Supercenter's bakery section. A typical Krispy Kreme factory store is about 4,500 square feet, but some of that space is for seating, which the Wal-Mart outlet will not have, Parker said.

The doughnut and coffee shops will be in Wal-Mart stores in Virginia Beach, Va., and Scottsburg, Ind., which is near Krispy Kreme's factory store in Louisville, KY. Those shops will be between 840 and 1,000 square feet, he said. The fresh shops will be in Wal-Marts in Seymour, Ind., and Christiansburg, Va. Factory stores in Roanoke, Va, and Indianapolis will supply the Wal-Mart shops with finished doughnuts. All five outlets will be owned and operated by Krispy Kreme, Parker said.