The Food Institute Blog

The Food Institute Blog

Walmart Pressures Suppliers, Produce Sales to Improve
Posted on April 03, 2015 by Bryan Wassel

Facing pressure from dollar stores and other deep discounters, Walmart is working to hold onto its title as the country's low-price leader. One of its biggest initiatives is pressuring suppliers to cut costs on their products, which would allow the retailer to pass the savings onto its customers, reported MarketWatch.

Walmart is suggesting suppliers cut the portion of their marketing budgets spent on advertising products in Walmart stores, then use the savings to offer the chain lower prices. While this could improve sales for the companies by attracting consumers with better deals, the move has its critics. Chief among the concerns is that reduced advertising will make it harder for individual brands to stand out against competitors and the ever-increasing popularity of private label options.

In the store themselves, Walmart is changing its produce policy to reduce waste and potentially make further sales, reported MarketWatch. Under the new rules, stores will mark down prices on produce as it gets closer to expiration, increasing the chances of it being sold. The company will also offer additional training to workers in its fresh foods sections.

Do you think these changes will help smaller producers, or will the benefits be relegated to Walmart only?

Posted in Retail   Produce  


About the Author

Bryan Wassel
Editorial Director
The Food Institute

With a background in both daily and weekly publications, Bryan has worked as a journalist since freelancing for his hometown paper in high school. He has since written both in print and online for min, The Times of Trenton and North Jersey Media Group, holding positions from stringer to editor. With a background as a news reporter, he has learned to seek out the focus behind the story, digging for the most important information. He has been with The Food Institute since 2013, where he edits Today in Food and The Food Institute Report, as well as puts together newsletters for several clients.


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