EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Sportsman’s Choice professional formulation, and Sam’s Club. At ASDA stores in the UK: ASDA
Play and Learn (toys), ASDA Home (cleaning), ASDA Extra Special (premium), ASDA Good For
Your (healthy foods), ASDA (organic foods), George (clothing), George Baby Organic (cotton
clothing), George Essentials (entry level pricing), Smart Price (no frills), Metro 7 women’s
fashion apparel and accessories, and Pacific (electrical). In Mexico: Aurrea and Viva Verde
organic foods, etc. In Seiyu (Japan): Shoku-no-Sachi (Food Delights), Kankyo Yusen (products
focused on the environment), Clothing (everyday fashion wear).
EB skus: 15,000+ (E)
Profile: In fiscal 2012, Walmart celebrated its 50th anniversary. The year produced a stronger
performance versus the prior year: Overall, some 1,160 units were added to its roster, strong
comparable store sales were recorded, and favorable currency exchange rates helped business.
Operating profits were up by 4% to $26.6 billion. Walmart continues to expand internationally,
two important acquisitions during the year, helping this business segment. In April 2011, Walmart
took control of 147 Netto stores in the United Kingdom from Dansk Supermarked (also in this
database). Two months later, Walmart completed a tender offer for approximately 51% ownership
in Massmart, a South African retailer with approximately 290 stores in 13 sub-Saharan African
countries. The purchase price was approximately ZAR 16.9 billion ($2.5 billion). The assets
acquired were approximately $6.4 billion, including approximately $3.5 billion in goodwill;
liabilities assumed were approximately $1.9 billion; and the non-controlling interest was
approximately $2.0 billion. This gave Walmart a new geographic foothold in Botswana, Ghana,
Lesotho, Malawi, Mozambique, Namibia, Nigeria, Swaziland, Tanzania, Uganda and Zambia.
Meantime, Walmart in the US recently has address its poor performance in the Sam’s Club chain,
adding produce, meat and bakery items, on an ongoing basis. This also includes the introduction
of three new exclusive brands: Artisian Fresh bakery goods, Simply Right personal care products,
and Daily Chef grocery products, which may replace products in the Sam’s Club Member’s Mark
private label identity in those categories. Sam’s Club’s other two private brands, Bakers & Chefs
and Sam’s Club, very likely will also be affected. Walmart also has begun testing a new premium
food brand, World Table, which covers some 50+ skus in cookies, chips, snacks, pizza, etc. The
line includes imported food products from Europe. Reports recently indicate this ‘test’ has been
extended into its stores in Mexico and Central America. To improve soft sales in its US
supercenters and discount stores, Walmart is testing smaller format stores. A new concept,
Walmart Express stores, ranging from 15,000 to 30,000 square feet—quite different from its
typical 185,000 square foot superstore—-was opened in the second quarter of fiscal 2012. It is
believed that these stores will have greater private label share of total sales versus its other US
store formats. Walmart reported groceries sales now account for 55% of its total US sales, up from
53% in fiscal 2011, and a 49% share in fiscal 2009. It’s estimated that Walmart now has a 25%
market share in the US supermarket business. The company recently announced plans to
accelerate its mid-size Walmart Market stores (averaging about 42,000 square feet): some 100 to
open in fiscal 2012 bringing the count to 285+. In the UK, the ASDA chain announced in Sept.
2010 its largest own brand re-launch in UK retail history, re-branding some 3,500 products under
its ASDA label to the new ‘ASDA Chosen by You’ brand, which generate sales exceeding $14
billion. In 2011, Walmart rolled out a new beauty care product range, GeoGirl, targeted to girls’
ages 8 to 12, offering different makeup products, featuring natural ingredients. Walmart is active
on many fronts in the area of sustainability initiatives, some of them impacting on its own brands.
For example, during this fiscal period, the company eliminated 16% of the paper fiber used to
package its Great Value brand margarine, transitioning its own brand sandwiches from a nonrecyclable
plastic bag to a recyclable paperboard carton. Its Sam’s Club team collaborated with a
national cereal producer to reduce packaging and meet member needs by shifting from a single
club-size pack to a twin bundle of smaller, lighter cartons, resulting in a cut in fiber consumption.
Additionally, the Walmart Canada team began shipping Great Value brand spring water in a bottle
made from 100 % recycled PET. During the year, Walmart also introduced a new palm oil
procurement policy, where the Sam’s Club Artisan fresh banana nut bread became the first