Issue link: https://www.epageflip.net/i/832311
Wal-Mart Stores Inc. is adjusting its buying operations in efforts to make the process more efficient for both the retailer and its vast network of suppliers. Under the Bentonville-based retailer's new plan, a product available for sale in Wal-Mart stores also will be approved for its online assortment. One buyer from the retailer's store buying team will be able to purchase the product for both platforms. Previously, a supplier would have to work with separate buyers for the item to be available in both places. The change is designed to streamline the assortment process so items that are in stores also are available online. "This is part of a continued effort to better serve customers by creating a more efficient process that acceler- ates how we bring the full assortment of products in stores to Walmart.com," Wal-Mart spokesman Lorenzo Lopez said in an emailed statement Tuesday. "It also allows for Walmart.com buyers to focus on expanding the online assort- ment." Wal-Mart likely discussed the change during a supplier-growth conference held in Rogers in February. About 4,000 suppliers attended the two-day meeting. Holding a separate conference for suppliers is a slight change from previ- ous years, when Wal-Mart scheduled the event in conjunction with what it calls a big opportunity there and a way to keep the customer sticking with them instead of jumping to a competitor. But you have to be careful. You don't want to over-index there because a lot of people still go to Wal-Mart for brands. There's a fine line." Sam's Club made some decisions regarding private label products based on customer feedback through focus groups. The message, according to Holt, was that the members wanted new items and some of the existing ones to be updated. There are about 2,000 private label items in the Sam's Club catalog, although Holt said a store will typi- cally hold between 800 and 900 on the shelves. The new items being intro- duced this year span multiple catego- ries, including food, apparel and health and wellness. Holt said Sam's Club plans to add about 300 more next year as well. In some cases, Member's Mark items will replace brands. In other cases, they'll sit on the shelves alongside those brands. Holt said Sam's Club listens to customers as it makes those decisions. "We don't want to take away brands that our members love," Holt said. "But where there's opportunity where the brands don't really matter to the members, we'll attempt to replace those with private brands and some of our items are in addition to." Most of the private label items in the store are now under the Member's Mark name, which has been synony- mous with Sam's Club for more than 20 years. There are some Daily Chef items remaining, but Holt said those are in the process of transitioning to Member's Mark as well. Sam's Club also worked with design and branding experts throughout the private label overhaul, creating a Member's Mark logo to unify the items. But Holt said Sam's Club has "put the item first," designing packages that fit the products in place of a standard template typical of most private brands. Overall, the private-label efforts taking place at Sam's Club is evident across the rest of Wal-Mart's businesses. CEO Doug McMillon told analysts in March the company has "some pretty big opportunities" to create product-driven loyalty through private brands both in stores and online. It doesn't mean the retailer is pushing brands out of its stores, but Wal-Mart is putting more resources into its private label offerings and is starting to see momentum. McMillon said some of those investments were on display during the company's year-beginning meetings in Orlando, Fla. "The first time I can remember there were lab coats, some scientists and suppliers and some of our own merchants that were showing how we have built some of these private brand products," McMillon said. "We wanted our store managers to see quality — we had examples from food, examples from footwear and apparel — so that our own team would know we're really invest- ing and ensuring that our specifications here are strong. So that opportunity is still in front of us." 16 NWA Democrat-Gazette Walmart Shareholders Thursday, June 1, 2017 It's not unusual for Wal-Mart to test smaller-store formats. The company began opening Wal-Mart Express stores with an average size of 12,000 square feet in 2011, but decided to close 102 of them across the U.S last year. Wal-Mart also has opened college campus stores ranging from 3,000 to 5,000 square feet, although some of those have closed as well. There are other types of convenience store tests underway. Last year, the retailer began testing a concept called Wal-Mart Pickup and Fuel in Huntsville, Ala., and Thorn- ton, Colo. In addition to fuel stations and convenience selections, customers also can order groceries online and pick them up at those stores the same day. "We're trying that as a combination," Narsey said. "Again, it's all about conve- nience." Joshua Nicholson, manager of the fuel station in Rogers, said 12 people will work the store. The store is open daily from 5 a.m. until midnight, but the gas pumps will operate 24 hours a day. Like any test, Wal-Mart will decide whether to roll the convenience stores out to a larger audience based on results and customer feedback from Rogers and Crowley. But Nicholson believes there's a lot of opportunity in the format the retailer unveiled in Rogers. "We're just going to focus on our customers right now and take that feed- back and go with that," Nicholson said. "But I think we'll do pretty well. I think our customers will be impressed." Store v Continued from Page 12 Brand v Continued from Page 14 NWA DemocrAt-GAzette/JASON IVESTER Stuart and Barbara Drizner of Holiday Island shop at Sam's Club in Bentonville. Wal-Mart modifies its buying operation ArkANsAs DemocrAt-GAzette See Buying, Page 20