Walmart is set move into convenience stores in urban markets such as Chicago and Los Angeles as the largest US retailer seeks to revitalise growth in its home market.

Commercial real estate brokers say Walmart has begun scouting for sites for smaller-format stores in a range of urban markets, including Sacramento and the San Francisco Bay area, Reno and Detroit. Bill Simon, chief executive of Walmart’s US business, said the expansion plans, to be outlined next month, will include smaller stores similar to those it runs in Mexico and elsewhere in Latin America.