Word: retailler
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...Mart's centralization of power at its headquarters in Bentonville, Ark., could produce agitation among the managers of its stores, who have traditionally been granted considerable independence in stocking what locals want. And consumers get bored by one-size-fits-all merchandise. Says Ira Kalish, an analyst for consultancy Retail Forward, in a mostly bullish report on Wal-Mart: "Excessive size could breed bureaucracy as well as failures in the areas of merchandising and customer relations...
...think Wal-Mart already sells just about everything, think again. Think PCs, ceiling fans, more fashionable clothing, gasoline and even cars. "Their goal is to have a 30% share of every major business they are in," says Linda Kristiansen, a retail analyst for UBS Warburg Equity Research. If there's no Wal-Mart store near you, just wait. If you shop at Wal-Mart, expect your store to get bigger or a new store to open even closer. The chain plans to expand from 3,400 U.S. locations today--half of them in the South--to a nationwide network approaching...
...speeding up the supply lines. Wal-Mart gets most of its towels from India, and today it reorders once a month. If one pattern gets hot and sells out early, sales are lost. In going direct, however, Wal-Mart will make the factories in India part of its Retail Link system. That allows vendors like Sara Lee (Hanes underwear, Bryan bacon) to dip into Wal-Mart's computers and track sales and replenish supplies constantly. By the same token, Wal-Mart will be held more responsible for these factories' social and environmental policies. As the folks at Nike can tell...
...after paying $14 per yd. for 50,000 yds. of material to make them. Then the buy was moved to Bentonville, and the conversation went something like, "We'd like 6 million yds., please. Now what's your price?" Try $4.77 per yd. As a result, ASDA slashed its retail prices in half and upped its annual jeans sales to 1 million, from 174,000. ASDA is acquiring some 2,000 products from Wal-Mart's global network and has become Britain's leading seller of kids' clothes...
...meter for just over 45,000 meters of material to make them. Then the buy was moved to Bentonville, and the conversation went something like, "We'd like 5.5 million meters, please. Now what's your price?" Try $5.21 per meter. As a result, ASDA slashed its retail prices in half and upped its annual jeans sales to 1 million, from 174,000. ASDA is acquiring some 2,000 products from Wal-Mart's global network, and its gains might have set off a consolidation spree. Last week, Morrisons, the U.K.'s fifth-largest chain, launched a takeover offer...