Thursday, April 27, 2017
Amazon and Walmart are in an all-out price war that is terrifying America’s biggest CPG brands.
Last month, Walmart invited the leaders of some of America’s biggest household brands to its headquarters for a “tough talk” on prices. For years, Walmart had dominated the retail landscape on the back of its “Everyday Low Price” guarantee. Now that competitors like Amazon are beating it on price, Walmart called the meeting to reset expectations with its suppliers, according to a CNBC report.
Walmart wants to have the lowest price on 80 per cent of its sales, the news report says, and 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 per cent off. In some cases, vendors say they would lose money on each sale if they met Walmart’s demands.
