Walmart thinks they know best about what products you need!

[jstaylor62]

Product overload: Stores are threatening to dump brands - Feb. 15, 2010

Dumped! Brand names fight to stay in stores

NEW YORK (CNNMoney.com) -- Don't be shocked if you can't find your favorite salad dressing or mouthwash on your next trip to Wal-Mart.

Large retailers -- including Wal-Mart (WMT, Fortune 500), the world's biggest -- are wrestling with having too many types of brand-name products. At the same time, shoppers are buying less and looking for bargains.

Facebook Digg Twitter Buzz Up! Email Print Comment on this story

So unless a particular brand is a top seller in its category, it's getting knocked off the shelf -- and sometimes getting replaced by a cheaper store brand.

For example, Wal-Mart recently removed Glad and Hefty-branded storage bags from shelves, replacing them with its own lower-priced Great Value brand, according to the parent companies of both products.

In the case of Hefty, parent Pactiv Corp. (PTV) told CNNMoney.com that Wal-Mart reversed its decision, and will return its products to shelves this spring -- after Pactiv agreed to make the Great Value bags that will sell alongside the competing Hefty product.

"Hefty was off Wal-Mart's shelves, but we are being brought back," said Matt Gonring, spokesman for Pactiv Corp.

Bill Pecoriello, CEO of market research firm ConsumerEdge Research, expects Wal-Mart and other sellers will trim several name-brands across categories in coming months, or negotiate deals to get better pricing.

According to Pecoriello, those categories at greatest risk of losing brands are everyday-type purchases such as household products, toiletries and food staples.

These are also categories in which retailers have aggressively pushed their own house brands.

"If you consider the economics of this, if Wal-Mart can build customer loyalty for its own brand, which is also cheaper-priced and cheaper to stock than name-brands, then it will," he said.

Heavyweight
Moves such as this are significant given Wal-Mart's heavyweight status in the retail industry.

"Any change that Wal-Mart makes with its product assortment has enormous implications for the entire industry," said Ali Dibadj, senior analyst with Sanford C. Bernstein & Co.

Wal-Mart declined comment for this story.

Wal-Mart is not the only one doing this, according to Dibadj. He says leading drug store chains, including CVS and Walgreens, grocers such as Kroger (KR, Fortune 500), and Wal-Mart's rival discounter, Target (TGT, Fortune 500), are also looking to simplify their store shelves.

In good economic times, product variety is a must for retailers. But in down times, when shoppers aren't buying much, variety can be a burden.

"Wal-Mart's a little fed up," said Lora Cecera, retail expert and partner at strategy consulting firm Altimeter Group. "I think the feeling is that as these companies keep extending their [product] lines, it's only causing confusion for shoppers and not really driving them to buy more products."

As a consumer, she asked, "Do I really need to decide between 15 different types of toothpaste when I go to a store?"

Dawn Willoughby, vice president-general manager of Glad brand for the Clorox Co. (CLX, Fortune 500), agreed.

"On an industry level, we've been talking about simplifying product assortment for a long time," said Willoughby. "If you walk into a Wal-Mart or another large retail chain, there are so many products on shelves that it does make it harder to shop."

Let's make a deal
Besides cutting clutter, industry experts say Wal-Mart and other retailers are looking for more lucrative deals from suppliers on both prices and advertising.

In one recent example, according to published reports, Wal-Mart removed Arm & Hammer liquid laundry detergent from most of its stores. But the discounter brought back the product after Arm & Hammer boosted its advertising for the product at Wal-Mart.

Arm & Hammer parent Church & Dwight (CHD) did not return calls for comment. Other consumer product makers -- including Colgate-Palmolive and Procter & Gamble -- either declined comment or did not return calls.

Said Dibadj, "Perhaps one consideration in which product to cut is based on which company gives [Wal-Mart] the best deal."

Citing the Hefty example, he said "these threats can become quite aggressive, such as delisting and subsequent relisting after a compromise.

Altimeter Group's Cecera believes consumers stand to win from the retailers' moves.

"In this recession, consumers have certainly become less discriminating with what they buy," said Cecera. "Consumers have rushed to value prices, and they are buying generic brands."

She said retailers' own brands have grown their market share by between 2% to 6%.

This newfound affection for store brands is "sticking," said Dibadj. He cites his firm's recent survey finding that 77% of consumers who traded down to less expensive private label products are happy with their decision.

[hipsterdoofus]

What does this have to do with this forum?

[okclee]

Wal-Mart = Oklahoma City

[Dustin]

Walmart can die.

[Matt]

Support local, people. Buy from Crest. Steal from Walmart.

[venture]

This should be in the business section, not Metro.

As far as the topic, if Crest was as wide spread as Walmart, it would probably be easier for some of us. Homeland is about as local as I can get in this part of the Metro, though for non-food items I'm still going to do Walmart because of the price point.

Unfortunately price point > everything else right now for a lot of people.

[airplane777]

That's why we need a Kroger or Smiths in Oklahoma City

[fuzzytoad]

In addition to what's already been said here, all I've got to add is this:

Who gives a sh!t?

There isn't a b&m store on the planet that doesn't routinely change the various brands they offer.

[airplane777]

Product overload: Stores are threatening to dump brands - Feb. 15, 2010

Dumped! Brand names fight to stay in stores

NEW YORK (CNNMoney.com) -- Don't be shocked if you can't find your favorite salad dressing or mouthwash on your next trip to Wal-Mart.

Large retailers -- including Wal-Mart (WMT, Fortune 500), the world's biggest -- are wrestling with having too many types of brand-name products. At the same time, shoppers are buying less and looking for bargains.

Facebook Digg Twitter Buzz Up! Email Print Comment on this story

So unless a particular brand is a top seller in its category, it's getting knocked off the shelf -- and sometimes getting replaced by a cheaper store brand.

For example, Wal-Mart recently removed Glad and Hefty-branded storage bags from shelves, replacing them with its own lower-priced Great Value brand, according to the parent companies of both products.

In the case of Hefty, parent Pactiv Corp. (PTV) told CNNMoney.com that Wal-Mart reversed its decision, and will return its products to shelves this spring -- after Pactiv agreed to make the Great Value bags that will sell alongside the competing Hefty product.

"Hefty was off Wal-Mart's shelves, but we are being brought back," said Matt Gonring, spokesman for Pactiv Corp.

Bill Pecoriello, CEO of market research firm ConsumerEdge Research, expects Wal-Mart and other sellers will trim several name-brands across categories in coming months, or negotiate deals to get better pricing.

According to Pecoriello, those categories at greatest risk of losing brands are everyday-type purchases such as household products, toiletries and food staples.

These are also categories in which retailers have aggressively pushed their own house brands.

"If you consider the economics of this, if Wal-Mart can build customer loyalty for its own brand, which is also cheaper-priced and cheaper to stock than name-brands, then it will," he said.

Heavyweight
Moves such as this are significant given Wal-Mart's heavyweight status in the retail industry.

"Any change that Wal-Mart makes with its product assortment has enormous implications for the entire industry," said Ali Dibadj, senior analyst with Sanford C. Bernstein & Co.

Wal-Mart declined comment for this story.

Wal-Mart is not the only one doing this, according to Dibadj. He says leading drug store chains, including CVS and Walgreens, grocers such as Kroger (KR, Fortune 500), and Wal-Mart's rival discounter, Target (TGT, Fortune 500), are also looking to simplify their store shelves.

In good economic times, product variety is a must for retailers. But in down times, when shoppers aren't buying much, variety can be a burden.

"Wal-Mart's a little fed up," said Lora Cecera, retail expert and partner at strategy consulting firm Altimeter Group. "I think the feeling is that as these companies keep extending their [product] lines, it's only causing confusion for shoppers and not really driving them to buy more products."

As a consumer, she asked, "Do I really need to decide between 15 different types of toothpaste when I go to a store?"

Dawn Willoughby, vice president-general manager of Glad brand for the Clorox Co. (CLX, Fortune 500), agreed.

"On an industry level, we've been talking about simplifying product assortment for a long time," said Willoughby. "If you walk into a Wal-Mart or another large retail chain, there are so many products on shelves that it does make it harder to shop."

Let's make a deal
Besides cutting clutter, industry experts say Wal-Mart and other retailers are looking for more lucrative deals from suppliers on both prices and advertising.

In one recent example, according to published reports, Wal-Mart removed Arm & Hammer liquid laundry detergent from most of its stores. But the discounter brought back the product after Arm & Hammer boosted its advertising for the product at Wal-Mart.

Arm & Hammer parent Church & Dwight (CHD) did not return calls for comment. Other consumer product makers -- including Colgate-Palmolive and Procter & Gamble -- either declined comment or did not return calls.

Said Dibadj, "Perhaps one consideration in which product to cut is based on which company gives [Wal-Mart] the best deal."

Citing the Hefty example, he said "these threats can become quite aggressive, such as delisting and subsequent relisting after a compromise.

Altimeter Group's Cecera believes consumers stand to win from the retailers' moves.

"In this recession, consumers have certainly become less discriminating with what they buy," said Cecera. "Consumers have rushed to value prices, and they are buying generic brands."

She said retailers' own brands have grown their market share by between 2% to 6%.

This newfound affection for store brands is "sticking," said Dibadj. He cites his firm's recent survey finding that 77% of consumers who traded down to less expensive private label products are happy with their decision.

Aldi Stores (ALL DISCOUNT) offer "Boulder" trash bags, they are better than the Hefty or Glad brand. They're cheaper as well.

[fire121]

Free Market Capitalism, it's great isn't it?

They have the freedom to sell what they want.

We have the freedom to choose where we want to shop.

Dollar General sells the name brands!!

[OKCMallen]

Free Market Capitalism, it's great isn't it?

They have the freedom to sell what they want.

We have the freedom to choose where we want to shop.

Dollar General sells the name brands!!

Yep.

People want to hold Walmart to a different standard.

[PennyQuilts]

It is kind of a weird argument, especially the part about Wal-Mart thinking they know better what we need. It's a business. I shudder to think that Walmart or any other grocery store would have the kind of power implied by the topic of this thread. And for what it's worth, the article made it clear it was a business decision and other stores do the same thing.

[PennyQuilts]

duplicate

[mugofbeer]

That's why we need a Kroger or Smiths in Oklahoma City

If you read the entire story you also would have seen that Kroger practices the same thing. Kroger and all of the national brands have their own in-store brands that, an many cases, are as good or better than the national brands. You want to know what else? Safeway does the same thing. So does Albertson's. So do all of the large grocers.

The article discussed Hefty and Glad bags (which I saw this weekend on a trip to Wal Mart so I am not sure what the article is talking about). Anyway, it mentions that the maker of Hefty bags is going to make the Wal Mart brand. Moral to the story? For the class of bag, its the same bag and it sells for like 70% of the price of Hefty.

Those of you who trash Wal Mart just make me laugh. You think Wal Mart is supposed to be everything to everyone and since they don't make YOUR product, you take up a hypocritical hatred of them. Get it through your heads. Wal Mart is a store that is geared toward the VALUE customer, not the customer with pockets full of discretionary cash.

If they can sell their own product for 70-80% of the price of the national brand, they will do it - but so will Kroger and HEB and Tom Thumb. They've tried to get the national brands to lower their prices and you criticize them. They sell their store brands for a fraction of the national brands and you criticize them. Admit it, you are just Wal Mart bigots and you can't even explain why. If you don't like Wal Mart, shop somewhere else.

[Dustin]

Support local, people. Buy from Crest. Steal from Walmart.

I had NO idea Crest was local... Awesome!

[lasomeday]

They stopped carrying Mentadent toothpaste, so I stopped going there. They carry Crest and Aquafresh. 30 different kinds of each.

[Matt]

Given Walmart's typical clientele, it's a wonder they carry toothpaste at all.

[venture]

Given Walmart's typical clientele, it's a wonder they carry toothpaste at all.

A so rises another narrow minded moron on the forums. /sigh

I guess it depends where you go. Walmart in Norman, your "typical" client probably makes up 10% or less. Go to one away from the major cities, and I guess you could say it makes up half or more. But then, I guess you would also say the "typical Oklahoma resident" would also fit in to your pathetic generalization.

I would invite you to go up to one of them next time and ask if they even brush their teeth. Chances are you'll walk away needing to brush a few less and will get to include yourself in your lovely grouping of stereotypes. Well...at least in a group that doesn't include narrowmind, self hating, twit.

[airplane777]

If you read the entire story you also would have seen that Kroger practices the same thing. Kroger and all of the national brands have their own in-store brands that, an many cases, are as good or better than the national brands. You want to know what else? Safeway does the same thing. So does Albertson's. So do all of the large grocers.

The article discussed Hefty and Glad bags (which I saw this weekend on a trip to Wal Mart so I am not sure what the article is talking about). Anyway, it mentions that the maker of Hefty bags is going to make the Wal Mart brand. Moral to the story? For the class of bag, its the same bag and it sells for like 70% of the price of Hefty.

Those of you who trash Wal Mart just make me laugh. You think Wal Mart is supposed to be everything to everyone and since they don't make YOUR product, you take up a hypocritical hatred of them. Get it through your heads. Wal Mart is a store that is geared toward the VALUE customer, not the customer with pockets full of discretionary cash.

If they can sell their own product for 70-80% of the price of the national brand, they will do it - but so will Kroger and HEB and Tom Thumb. They've tried to get the national brands to lower their prices and you criticize them. They sell their store brands for a fraction of the national brands and you criticize them. Admit it, you are just Wal Mart bigots and you can't even explain why. If you don't like Wal Mart, shop somewhere else.

When I go out of state, I try to find a Kroger, they have a better selection of groceries. That all I was saying, Albertsons did however fill that niche here in OKC for awhile. Those that hate Walmart probably are upset because
they dominate the market and intimidate out of state grocers from locating here. I remember when Walmart first opened, they had the lowest prices in town, after they were able to run off some competition, they raised their prices. Without Healthy competition expect to pay more.

[bradzilla]

threads like this are a waste of time, super walmart has always had a pretty poor selection of most items and they will continue too. they dont care what your favorite brand is because most people will suck it up and buy another brand of a product instead of shopping somewhere else. over the last 5 years ive noticed numerous other items that i liked that have quit carrying and those items have never came back to their shelves. its the same as people complaining that they are building a walmart in their section of town and then you drive by each day and the parking lot is still flooded with cars.

write a letter or shop somewhere else, we chose crest.

[PennyQuilts]

Wal Mart was a godsend to me when I was raising my family, and people in rural areas are generally ecstatic when one shows up - jobs and items they'd have to drive two hours for are suddenly around the corner. First husband was in the grocery business all 24 years we were married and so I learned, first hand, that it is a hard business to keep going. People probably ought to do some research before they stereotypically trash a grocery store - some seem to think it is one of those businesses that run itself. The fact is, there are low profit margins, intense competition, constant aggravation.

Wal Mart gets the worst of it because the pro union folks took aim against them. They get people all anti-Wal Mart and they don't even realize that they are pawns. If they want to attack Wal Mart for being anti union, go for it. But what happens is that they trash Wal Mart on the sorts of things you see in this thread without ever having a clue that the whole grocery store business is similar. I get frustrated with Wal Mart but on the whole, it does a better job than your average grocery store.

And yes, they have ugly people there. It is kind of fun to notice them - it is a cultural icon, after all - but some people cross the line with narrow minded, mean spirited stereotypes - generally the same people who would have a stroke if you said something similar about a group they favored. Kudos that they have discretionary income that allows them to look down their noses at the "underbelly" of society from their lofty perches. They may not realize it because they are too snobbish, but most of those ugly people at Wal Mart are decent human beings. I've never seen when having discretionary income made anyone a superior person and I can tell you from reading this board that plenty of them are not only mean spirited and arrogant, they are incredibly ignorant.

I LOVE the four dollar prescriptions. That has made a huge difference in helping me stay in our medical care budget.

[airplane777]

Kroger does a great job when it comes to their own private Store brands.

[mugofbeer]

When I go out of state, I try to find a Kroger, they have a better selection of groceries. That all I was saying, Albertsons did however fill that niche here in OKC for awhile. Those that hate Walmart probably are upset because
they dominate the market and intimidate out of state grocers from locating here. I remember when Walmart first opened, they had the lowest prices in town, after they were able to run off some competition, they raised their prices. Without Healthy competition expect to pay more.

I agree to some extent. Grocery stores have an extremely thin profit margin so they will try to sell non-grocery items to make up for this. This is where Wal Mart gets them. IMO, the lack of strong beer and especially wine sales in the grocery stores is the main thing keeping national chains out.

What gets me is people who chew on Wal Mart just because its politically correct to do so. Wal Mart is simply competing. What really hurt competition in OKC is when Fleming moved out and promptly went bankrupt. At least they and their stores competed somewhat. I would love to see a Kroger or a Tom THumb/Safeway or a Whole Foods (this is a different animal though) here in town to compete against them to some extent but I don't see it happening very soon.

[MsDarkstar]

I've been noticing things disappearing from the shelves in the Wal-Mart Neighborhood Market for a while now. The selection is getting slimmer & slimmer, to the point that it forces me to go to the Supercenter in order to get certain items (like my particular scent of laundry soap, etc). Personally, I like and at times prefer the Wal-Mart brand items; can't see much difference between them and the name brand stuff although I don't care for the Wal-Mart brand ziplock baggies, they kinda suck. One thing I've really missed though is they used to have 2 in-store brands, Great Value and Sam's Choice. The Sam's Choice frozen lasagna's were great, much better than Stouffer's even, but they no longer carry it. Seems like they're being equal opportunity about the brands they're cutting out by cutting one of their own & not just limiting it to big names.

[mugofbeer]

Does anyone ever use Aldi (I think it is out on the NW Hiway)? I've never seen a post about them I dont think.