Wal-Mart Increases Pressure on Suppliers

The store chain began implementing the strategy "Every Day Low Cost", seeking deep discounts, especially from suppliers of high rotation products..

Monday, March 14, 2011

Everyday Low Prices (EDLP, for the acronym), involves offering consumers the lowest market prices for all products, the basic concept of the chain's positioning as a world leader in retail.

The article by Ana Cristina Camacho Sandoval in financierocr.com, reported that a Wal-Mart supplier, requesting anonymity, said the store "asked him to calculate how much he invested in marketing, promoting his product, shelf headers and promotions, and to have the amount discounted from the price offered to the chain.”

Aquileo Sanchez, director of corporate communications of the store in Costa Rica, said that these policies are the foundation of the success of Wal-Mart. The constant among the chain´s suppliers is the fact Wal-Mart is by far their largest customer, in some cases 40% of total sales, so they need to be able to negotiate the discounts requested.

More on this topic

Nicaragua: Walmart opens 14 new stores

May 2011

The retail giant will invest $54 million in new premises around the country throughout the year.

The good response shown by the Nicaraguan market has led the supermarket chain to expand its presence in the country.

As part of the investment Walmart will be adding a new store format, similar to warehouses, where discounts will be offered on more than 2 000 products, mainly in food category.

Small and Medium Sized Businesses Present Their Products to Wal-Mart

June 2009

31 Salvadoran entrepreneurs presented their products to Wal-Mart executives, at the Business Round organized by the multi-national company.

The event “Business Round” is part of Wal-Mart’s program “A hand to grow.” Claudia de Ibáñez, Manager of Corporate Affairs for Wal-Mart Central America, commented to Laprensagrafica.com that “something that is worth underlining is that the support of family businesses stimulates job growth.

Wal-Mart Rules Out Panama

June 2009

The supermarket chain plans to expand its presence in the Central American countries where it already operates and not to expand itself to new markets.

In the coming years, Wal-Mart Central America will open 50 locations distributed throughout Nicaragua, El Salvador, Honduras, Guatemala, and Costa Rica. The new supermarkets will create some 8,000 jobs in the region.

Pollo Campero opens restaurant in Wal-Mart

May 2008

Guatemala's Pollo Campero fried-chicken chain opened its first restaurant in a US Wal-Mart store, the Rowlett, Texas, Supercenter.

Executives of Pollo Campero's US operation aim to open 20 restaurants in Wal-Mart stores nationwide by the end of next year. Wal-Mart favors the venture as it tries to reflect a more multi-cultural image in its stores.

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