What it's like to shop at Walmart's store of the future that is becoming a threat to Whole Foods and Trader Joe's

The Neighborhood Markets, as Walmart calls them, are much smaller, located closer to city centers, and carry only groceries and consumables.

The Markets pose a major threat to traditional grocers like Whole Foods, Kroger, and Trader Joe's, according to Moody's Vice President Charles O'Shea.

O'Shea says the Markets have a distinctive advantage over rivals because they can use Walmart's supercenters as supply hubs. He predicts that they will eventually outnumber supercenters.

The company now has 656 Neighborhood Markets and more than 3,400 supercenters.

"This is a very powerful format for Walmart," O'Shea told Business Insider.

We visited a Neighborhood Market in Richmond, Virginia to check out what it offers.