By Riad Beladi, with Professor John Moverlwy OBE
Over the past 39 years, I have observed, studied, and analysed the global retail and grocery landscape, from the bustling streets of Algiers to the sprawling supercentres of the United States. My professional journey has been guided by a simple principle: understanding how consumers interact with retail environments, and how business structures shape both customer experience and economic outcomes.
Recently, I had the opportunity to examine Walmart’s operations firsthand in the United States. I conducted interviews with senior executives, walked their stores, observed supply chain logistics, and analysed their retail strategy. In parallel, I have maintained my deep connection with Algeria’s grocery and retail market, understanding intimately the dynamics of family-owned shops, local markets, and emerging retail concepts. This comparative study forms the basis of a lively debate with Professor John Moverlwy OBE, whose research and experience suggest that the American superstore model represents the future of retail worldwide. I, however, see a different path—one rooted in Algeria’s social fabric, cultural habits, and economic realities.
The American Retail Model: Scale, Efficiency, and Market Domination
The United States’ retail industry is dominated by giant supermarket chains and big-box retailers such as Walmart, Costco, and Kroger. These organisations operate on a scale that is difficult to imagine outside the U.S.: hundreds, even thousands, of stores across the country, each connected through sophisticated logistics networks, centralised purchasing, and advanced data analytics.
The Walmart model, in particular, thrives on two principles: scale and reach. The larger the operation, the more leverage the retailer has over suppliers, the greater the efficiency in inventory management, and the more competitive the prices it can offer consumers. Walmart has perfected the science of supply chain optimisation, employing automated replenishment systems, advanced forecasting models, and national contracts with suppliers that allow them to negotiate lower prices than smaller competitors.
From a consumer perspective, these superstores are convenient. One-stop shopping, consistent pricing, and predictable inventory make life simpler for busy households. From a business perspective, scale generates bargaining power, brand recognition, and investor confidence. The argument Professor Moverlwy presents is straightforward: this model is the future. In his view, countries like Algeria could achieve rapid modernisation by adopting similar structures, centralising distribution, and developing regional or national supermarket chains.
The Algerian Retail Reality: Family Shops, Personal Relationships, and Cultural Fit
Algeria’s retail landscape, however, is structured differently. Small, family-owned shops remain the backbone of grocery distribution. These stores are often operated by the founding family, with children learning the business from a young age and taking over operations when the elder generation retires. There is a continuity of service, a personal knowledge of customers’ preferences, and a trust built over decades. The shopkeeper knows not just the shopping habits of clients but their families, their birthdays, and even their occasional struggles—an intimacy impossible in a large-scale chain.
Attempting to transplant the American superstore model into Algeria would face multiple challenges:
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Urban and infrastructure limitations: Large retail outlets require extensive parking, centralised logistics, and high-density traffic. Algerian cities, especially older quarters, are often unsuitable for sprawling superstores.
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Consumer habits: Algerians are accustomed to visiting multiple small shops, markets, and bakers. Shopping is social, often daily, and tied to local produce availability. Large weekly shopping trips, common in the U.S., do not fit culturally.
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Economic realities: The capital expenditure required to establish a chain like Walmart is immense. While scale offers efficiency in the U.S., Algeria’s fragmented market and lower population density in many regions make such investment risky.
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Local supply chains: Algeria’s grocery production and distribution are less centralised than in the U.S. Superstores would require significant investment in cold storage, national logistics, and supplier consolidation. This is not impossible, but it is a decades-long project with uncertain returns.
Why the Family Shop Model Works in Algeria. El Houma
Despite these challenges, Algeria’s small family shops continue to thrive. They provide flexibility, personalised service, and community integration. Consumers are not merely buying products—they are participating in a relationship-based system where loyalty is cultivated personally rather than through loyalty cards or nationwide promotions.
From my perspective, these shops offer long-term sustainability. Children inherit businesses not just as property but as a vocation, preserving knowledge of local tastes, seasonal cycles, and community expectations. This human touch cannot be replicated in a corporate environment, where store managers rotate and employees are replaced frequently.
Furthermore, the family shop model can adapt quickly to market fluctuations. For instance, during supply shortages or economic shocks, a small retailer can shift suppliers, adjust prices, or negotiate directly with producers without going through layers of corporate bureaucracy. This agility is an advantage over the rigidity of superstores bound by centralised systems and shareholder expectations.
The Debate: Scale vs. Tradition
Professor Moverlwy argues persuasively that large-scale chains maximise efficiency, lower consumer prices, and offer a predictable shopping experience. In the U.S., this model has generated remarkable growth, and its scalability is undeniable.
I, however, contend that in Algeria, the social and economic context renders the superstore model less effective. Efficiency and scale alone do not guarantee success when consumer behaviour, culture, and urban infrastructure are misaligned. Family-owned shops, rooted in communities, maintain relevance because they reflect the lives of their customers—not just their wallets.
The debate is not about one model being “better” in the abstract; it is about suitability. In a country like Algeria, success lies in balancing modernisation with tradition. Investments in logistics, cold storage, and supply chain management can strengthen small retailers without eroding the personal touch that defines the market. A hybrid approach—modern technology supporting traditional family shops—may ultimately be the most effective strategy.
Lessons for International Retailers
For international players observing Algeria, the lesson is clear: replication of the U.S. model is unlikely to succeed without significant adaptation. Superstore giants must understand local consumer behaviour, respect community-based shopping networks, and integrate culturally relevant strategies rather than imposing standardised solutions.
Conversely, Algerian retailers have opportunities to leverage technology, digital payment systems, and centralised procurement to strengthen small businesses while preserving the human element. This approach ensures sustainability, enhances customer loyalty, and maintains the cultural fabric of Algerian commerce.
After nearly four decades analysing retail worldwide, I remain convinced that the heart of successful retail is human connection. In the U.S., scale drives dominance and efficiency, and superstores succeed brilliantly within that context. In Algeria, success is measured differently: by trust, loyalty, and continuity. Family shops, passed down through generations, are more than businesses—they are institutions that connect commerce with community.
Our report with Professor Moverlwy is more than a comparison; it is a call to understand markets on their own terms. Efficiency alone does not define success. Growth is not just about square footage or national coverage. Ultimately, retail is about people—how they shop, what they value, and how businesses serve them. In Algeria, the family shop embodies these principles, proving that sometimes, smaller really is better.