EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

EB Identities: Weis, Weis Choice, Weis 5 Star (premium), Express Cafe (entrees like ready-tocook
chicken and beef dishes), Carnival,The Way It Was, From the Field (produce), Market Street
(deli items), Big Top, SuperPez
EB skus: 2,600
Profile: The tough economy has forced Weis to get tough on pricing. Two “Price Freeze”
programs (one affecting 1,600, the other 3,000 staple products) were conducted during the year.
Another 90-day “freeze” promotion kicked off in January 2011, covering 2,400 products. Weak
economic conditions and stiffer competition forced Weis to close 18 of its SuperPetz pet supply
stores, leaving just seen in operation. Also, a Scot’s Lo-Cost store was closed. (The company held
80% interest in the SuperPetz chain, acquired in 1993.) Net income for the year climbed by 8.8%
to $68.3 million.
Procurement Contacts: Daniel Kessle 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 the SOURCEBOOK). 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 U.S. 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, rebranding
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