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Walmart Pressures Suppliers, Produce Sales to Improve

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?