The World’s Biggest Corporation and much-vilified Little-Guy Crusher has been pulling out some innovations lately that have been turning the heads of erstwhile detractors.

In “The Great Grocery Smackdown,” the Atlantic Monthly looks at Walmart’s new company-wide policy of stocking fresh, organic produce bought from local farmers.

Will it destroy Whole Foods?

It’ll certainly give the organics leader a run for its watercress.

And that’s not all. The Atlantic correspondent writes:

“I started looking into how and why Walmart could be plausibly competing with Whole Foods, and found that its produce-buying had evolved beyond organics, to a virtually unknown program—one that could do more to encourage small and medium-size American farms than any number of well-meaning nonprofits, or the U.S. Department of Agriculture, with its new Know Your Farmer, Know Your Food campaign. [...] The program, which Walmart calls Heritage Agriculture, will encourage farms within a day’s drive of one of its warehouses to grow crops that now take days to arrive in trucks from states like Florida and California.”

In the Smackdown’s blind taste test, the Walmart foods held their own.

Walmart’s Heritage Agriculture plan clearly goes hand-in-hand with the company’s sustainability program, which entails tracking product sustainability, introducing reusable bags, building higher-efficiency stores, and other earth-friendly initiatives. The program led to Fast Company naming Walmart #9 in its Most Innovative Companies 2010 roundup.

Uncle Sam (Walton, that is) also has good news for movie junkies — and bad news for Netflix.

Walmart announced yesterday that it has acquired the on-demand video-streaming service VUDU. From the official statement:

“VUDU is a revolutionary service, built into a growing number of broadband-ready TVs and Blu-ray players, that delivers instant access to thousands of movies and TV shows directly through the television.  Customers with broadband Internet access and an Internet-ready TV or Blu-ray player can rent or purchase movies, typically in high-definition, without needing a connected computer or cable/satellite service.  New movies and features will be added continually, enabling customers to enjoy a product that continues to become more robust long after they have left the store.”

One of the biggest — if not THE biggest — retailer of DVDs and Blu-ray discs, Walmart is now looking to compete with Netflix and Amazon.

Local produce, sustainable products and all the movies you could want?

Whaddaya say, Wallyworld haters? Will these developments tear you away from Target? From the local farmers’ market?

Tell us what you think in the comments.