Posted on 02/16/2010 10:01:48 AM PST by Star Traveler
Published by diamondpoet
December 4, 2009
What is Walmart really up to.
Walmart is one of the biggest supermarket chains in the world. As of August 31, 2008, Walmart has as many as 100 food categories:
United States 4,227 total units.
International 3,210 total units
This is a time where families needs to make every penny count, Walmart expansion of it’s Great Value brand is replacing many of the name brands, we have used for so many years.
The new improved Great Value products — which has been appearing on shelves and various sections of the store, is slowly being integrated into Walmart stores across the country, within the past few months – will provide families with affordable and possible high quality groceries. This is some sales jargon that Walmart has come up with, but what is really going on?
Walmart is the company, that is famous for their roll-back slogan, and now it would seem that they are also trying to monopolize the food industry. I am all for savings, but I prefer quality products and good taste. I grew up with many of the brand names and it is what I am accustomed to.
There are a few thing that I could settle for, that is not name brand, but when I was shopping during the Thanksgiving holiday, I was looking for McCormick’s vanilla, this is the only brand that I use to make my pies. I discovered that Walmart had completely removed McCormick’s brand and replaced it with their own brand Great Value. I rely on McCormick’s products to prepare many of my meals.
I tried using substitutes, but there is no comparison to McCormick’s Seasonings. I have never shopped anywhere other than Walmart, because I was comfortable and they basically provided most of my needs.
It would now see that I am being forces to shop somewhere else. Walmart no longer stock all the brand names that I desire. Since Walmart is trying to completely eliminate the middle-man, what type of effect will this have on many of the distributors and will this also have a spiraling effect on the economy as well?
Since so many distributors rely on Walmart’s business, will they not suffer and be forced to downsize? I can’t help but wonder is this really going to benefits the consumers or hurt us even more?
I was just joking with you, but I would agree with what you say... :-)
Thank you Star Traveler, and I’m sorry if I worded that too strong. I appreciate your follow-up note.
I did, and on purpose. The real answer if you don’t like Walmart’s policies is to shop somewhere else and buy only name brands. I don’t understand all the whining when that option is readily available.
A rival of the “Great Quantity” brand?
That's not how I read the article. At most, the article--of questionable veracity--indicates that Wal-Mart will give more shelf space to the GV brand at the expense of name brands. Entirely removing name-brand products from their shelves would be tremendously stupid.
As an aside, though, there is definitely a niche to be had in selling private label products only. Trader Joe's, for instance, sells only private label products and its stuff is on par with, or better than, premium name brand products.
Your "choice"...
The real answer if you don’t like Walmart’s policies is to shop somewhere else and buy only name brands. I don’t understand all the whining when that option is readily available.
Well..., what I've been saying is that it was a dumb marketing move on Walmart's part. Other stores have the products right there, so that they don't drive their customers away to a competitor to get the name-brand stuff (both are there in the store, the name-brand and the off-brand).
But, what Walmart has done is "send" their customers to Walmart's competitors... LOL...
Well, actually..., it seems that it was “Walmart’s choice” to “send” their customers to a competitor... LOL...
Krogers, Food Lion, Publix, etc. simply will NOT even try to be competive with Walmart. They can buy their stock often just as cheap as Walmart and pass the savings along. But nooo, they’d rather lose the business, and the items go out of date, sitting on the shelf.
That's not how I read the article. At most, the article--of questionable veracity--indicates that Wal-Mart will give more shelf space to the GV brand at the expense of name brands. Entirely removing name-brand products from their shelves would be tremendously stupid.
Yes, it would be tremendously stupid, and that's what Walmart has done, with a selection of products. :-) ...
Here's the crux of the article, which is what caused it to be written in the first place. The rest of the stuff in the article is just "extra"...
There are a few thing that I could settle for, that is not name brand, but when I was shopping during the Thanksgiving holiday, I was looking for McCormick’s vanilla, this is the only brand that I use to make my pies. I discovered that Walmart had completely removed McCormick’s brand and replaced it with their own brand Great Value. I rely on McCormick’s products to prepare many of my meals.
...
It would now seem that I am being forces to shop somewhere else. Walmart no longer stock all the brand names that I desire.
And hence, that's why I'm saying that Walmart has now "sent" their customers to competitors of Walmart. Now how smart is that?
I agree Walmart is going downhill. They have been imo for a few years now. But lately with the reworking of their stores, they are accelerating the pace.
Unfortunately, I think that's true. It has seemed that way to me recently.
Krogers, Food Lion, Publix, etc. simply will NOT even try to be competive with Walmart. They can buy their stock often just as cheap as Walmart and pass the savings along. But nooo, they’d rather lose the business, and the items go out of date, sitting on the shelf.
What these other big stores don't do (that Walmart is apparently doing now) -- is that they have not eliminated the "name-brand products" from their stores and kept only their own "off-brand product".
When a store does that, and a certain segment of your shoppers want that name-brand product, you end up driving your customer away from your store and into the hands of a competitor who still has that name-brand product that the customer wants...
Walmart better rethink that particular "marketing strategy" for their own benefit and for keeping their customers ... :-)
These are slotting fees. The funds are supposedly used to cover what it takes to set the shelves, sign, etc. Depending on the company and retailer they can be quite substantial. You don’t pay, you don’t get your product on the shelf.
Hmm. So the author went to Wal-Mart and couldn't find the McCormick's vanilla, and from this, we are to assume that Wal-Marts across the nation are removing all name-brand products from their shelves? Please. Though, it's true that this is an article from NewsFlavor.com. With its storied history and reputation on the line, it would never print an article that didn't meet its high standards for truthfulness and integrity. So perhaps there is something to this...
On the other hand, while we're comparing anecdotes, I grocery shop every two weeks, and I usually shop Wal-Mart, along with a couple other stores. I've never seen an instance where Wal-Mart has entirely dropped a name brand product in favor of GV products. Of course, at Wal-Mart, store inventory is largely determined by the individual store manager, so this obviously varies from store to store--another reason not to take much stock from this "reporting."
I say “Why Not”
WalMart and ALDI can have at each other. The consumer benifets from it with lower prices.
Hmm. So the author went to Wal-Mart and couldn't find the McCormick's vanilla, and from this, we are to assume that Wal-Marts across the nation are removing all name-brand products from their shelves?
You're not reading the article correctly then, if that's what you think it says. Walmart has been removing selected name-brand products from their shelves and having only their "off-brand label" in the name-brand place.
Now, this is an article about that. And in addition to that article, I can confirm that myself. And in addition to me, another FReeper here on this thread can confirm that too.
And in addition to that, yet another FReeper says that not only does Walmart remove products like this from shelves, but sometimes they do so for a while in order to "negotiate" better prices (if I understood that FReeper right), and they may come back months or maybe even a year later.
So, it would appear that this is -- indeed -- happening.
And thus, that's why I said it was an extremely stupid marketing move on behalf of Walmart -- to end up driving their customers into Walmart's competitors' hands, because of Walmart discontinuing those selected products that they have.
Now..., if you can't understand that much of the story here... I'm afraid you need much more help than I'm able to give you... LOL...
WalMart and ALDI can have at each other. The consumer benifets from it with lower prices.
Yeah, at the rate Walmart may be going with getting rid of those products... yeah... it could be a horse race between Walmart, Aldi's and the corner convenience store where I get some gas... LOL...
How do you think businesses do, or should, "negotiate"?
If Wal-Mart wants to sell only their in-house brand, that's their prerogative. It's monumentally dumb to do so, but they have that right.
You're free to open your own grocery store and compete.
I hope the HoHOs and Twinkies are made here.. and not in China
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