Friday, March 31, 2017

Amazon and Walmart are in an all-out price war that is terrifying America’s biggest brands - Recode

Also see Amazon Wants Cheerios, Oreos and Other Brands to Bypass Wal-Mart (Bloomberg)

"Walmart wants to have the lowest price on 80 percent of its sales, according to a presentation the company made at the summit, which Recode reviewed.

To accomplish that, the brands that sell their goods through Walmart would have to cut their wholesale prices or make other cost adjustments to shave at least 15 percent off. In some cases, vendors say they would lose money on each sale if they met Walmart’s demands.

Brands that agree to play ball with Walmart could expect better distribution and more strategic help from the giant retailer. And to those that didn’t? Walmart said it would limit their distribution and create its own branded products to directly challenge its own suppliers."
Amazon and Walmart are in an all-out price war that is terrifying America’s biggest brands - Recode

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