Wal-Mart's Whack-a-Mole Strategy to Confront Food Price Increases
Depending on who you talk to, Wal-Mart does not exactly have the best reputation for treating suppliers fairly when it comes to letting them pass along price increases (even in rising commodity markets). In fact, I'd describe their strategy as "whack-a-mole". If a supplier complains, threaten to move elsewhere. Consider this recent CNN story that suggests Wal-Mart is driving suppliers to reduce costs further even in the inflationary environment that many food producers are facing. Wal-Mart's GM for perishables is quoted in the story as saying, "When our grocery suppliers bring price increases, we don't just accept them."
But pushing back on suppliers by denying price increases and forcing them to reduce prices further is only one strategy the retailer is deploying. Wal-Mart is also encouraging suppliers to reduce packaging while promising them the same amount of shelf-space. The Bentonville giant is also attempting to go direct for private label items rather than working through middlemen. But perhaps most interesting, Wal-Mart is doing more local sourcing to saving on transportation costs. According to one potato supplier in the article providing spuds to Wal-Mart in the Northeastern United states, the cost of "shipping one truck of spuds from his farm in Maine to local Wal-Mart stores costs less than $1,000, compared with several thousand dollars for a big rig from Idaho. Last year his shipments to Wal-Mart grew 13%."
- Jason Busch
But pushing back on suppliers by denying price increases and forcing them to reduce prices further is only one strategy the retailer is deploying. Wal-Mart is also encouraging suppliers to reduce packaging while promising them the same amount of shelf-space. The Bentonville giant is also attempting to go direct for private label items rather than working through middlemen. But perhaps most interesting, Wal-Mart is doing more local sourcing to saving on transportation costs. According to one potato supplier in the article providing spuds to Wal-Mart in the Northeastern United states, the cost of "shipping one truck of spuds from his farm in Maine to local Wal-Mart stores costs less than $1,000, compared with several thousand dollars for a big rig from Idaho. Last year his shipments to Wal-Mart grew 13%."
- Jason Busch
right down too the last roll of toilet paper they use...
It's NOT about saving them gas...
But, about making the American consumer HAPPY about NOT letting foreign produce coming into America....because produce sells have been down...But [you] still have to pay the same pricefor your gas to get to W-M to buy that local mega-farmers produce for the same price as it was before..but, W-M has saved $1.5 million in gas..Americans screwed again..and boy are they proud... of that..
And now we have PINCH the supplier game, so W-M doesn't have to pay more for groceries, that just been pass along to [you] POOR FOLKS.... Suppliers have to but food on the table to...But it shouldn't be at the cost of of W-M dictating to them...
Every morning as I am having my Famous New Orleans French Market Coffee [www.frenchmarchmarketcoffee.com] 1-800-554-7234........
I will take 4-8 items out of my pantry and call the question and comments number {above} and I began asking them how their
our and how is there day...of course you can see what ingredient
are in the packaging BUT where DID those ingredients come from..
This is where it can get very confusing..so that is when I decided
to go the the Federal Trade Commission....{www.ftc.gov} and W-M
and other chain BIG BOX stories will get got...go the Section on Competition Counts, How Consumers WIN WHEN Business Compete..and W-M is NOT playing fair...truth is we ALL could sue Wal-Mart for there consumer practices....everything form, over pricing, the show a profit...selling merchandise at a LOWER COST
than want they paid for it...examples...certain tires, car batteries, dog food....which is always at the back of the store
[ at Sam's Club ] those where get you in the store items and then begin to fill that BIG BASKET with items you DID NOT NEED....
Sorry I got off track...away I have a thumbs up and thumbs down
list and an in between...And I let the know sense it is a U.S.A. Made product which is the ONLY thing I support...with few exceptions..
I let them know right there and then that pinching is the same as gouging ....let the other grocery retailers buy it..as consumers [you] will buy from who ever has it...at a better or equal price...
I was in total shock the learn the Gold Medal Flour is NOT made here in the states....the wheat basket of the world comes from
all over Asia and India...Dole pineapple in the can the Phillipe's
taste like it too..nasty...Betty Crocker...they don't have a clue where there ingredient's come from, some where over seas....
that is all they would tell me..
The point I am making here is call those suppliers..thank them if
the products our American...and I re assure them I don't buy from Wal-Mart anyway....I support our other local grocery stories....
$$$$$$$$ AND SAVE MONEY $$$$$$$
Get with other grocery store Managers, brain storm together....
there are many ways to save a Wal-Mart is NOT one of them...
I give out information to help folks...check into the ftc.gov site...
you'll learn things you wouldn't had any way of knowing unless someone had told you.....use it and pass it on...we need all the help we can get...on saving and there are ways...