Walmart 2007 Annual Report Download - page 19

17
Merchandising: Developing Brands and Products
F
o
r man
y
y
ears
,
inn
o
v
at
i
on
in
merchandisin
g
h
as
l
ed
to
uni
q
ue
b
r
a
n
ds
a
n
d
n
ew
pro
d
ucts
f
o
r
o
u
r
cus
t
omers
.
T
h
at comm
i
tment cont
i
nue
s
e
v
en
more
so
in
t
h
e
2
1st
centur
y.
W
e
stren
g
thene
d
t
h
e
o
erings


in
a
pp
are
l
a
n
d
h
o
m
e
p
roducts m
ade
fr
o
m
organ
i
cco
tt
on,
b
am
b
oo,
so
yan
d
recyc
l
e
d

bers.

C
onsumers c
an

nd

more
a
o
r
d-


abl
ean
d
sustaina
bl
ec
h
oices
i
nt
h
eWa
l
-Mar
t
ais
l
es
.
In
o
u
r
gro
c
ery
area
s
i
nc
e
1
993,
G
r
eat
V
a
l
ue®
se
rv
es
as
our
customers’
brand
’
f
or
qualit
y
at
ever
y
da
y
l
o
w
p
rices
.
Th
e
W
a
l
-Mart De
li
Ta
ke
‘
N
’
Bake
’
P
izz
a
i
s
an
exce
ll
en
t
va
l
ue an
d
eas
y
to
b
a
ke
a
t
h
ome. L
i
n
e
e
x
te
n
s
i
o
n
s
a
l
so
in
c
l
ude
D
e
li
ta
k
e
-
a
n
d
-
ba
k
e
c
hi
c
k
en
p
o
t
p
ies, m
eat
lasa
g
na
a
n
d
c
hi
c
k
e
n
e
nchiladas
.
Wal-Mart
increasingly
i
s
y
the destinatio
n
f
or exclusive
o
erings


of
brande
d
f
p
ro
d
uct
s
f
rom t
h
ewor
ld
’s
l
ea
d
ing
f
ood compan
i
es, inc
l
u
d
in
g
organ
i
c
i
tems,
d
airy
,
a
n
d
fr
o
z
e
n
.
W
e
work
with
k
su
pp
liers
to
develo
p
uni
q
ue
p
roduct
s
in
cate
g
orie
s
fr
o
m
h
ousewares
t
o
l
awn an
d
gar
d
en an
d
f
ro
m
t
oys
t
oe
l
ectronics.
Logistics: Mixing It Up
Wh
at
ha
pp
ens wh
e
n
t
w
o
d
i
st
ri
but
i
o
n n
et
w
o
rk
s
swa
p
inventor
y?
Plent
y
– wh
en
the
y
are
Wa
l
-Mart’
s
G
rocery Distri
b
utio
n
C
ente
r
Network
and
k
Wa
l
-Mart’
s
Regiona
l
Genera
l
Me
r
c
h
a
n
d
i
se
Di
st
ri
but
i
o
n
Ce
n
te
rN
et
w
o
rk
.
E
ac
hw
as
o
n
ce
a
s
p
ecialis
t
–
t
h
e
Grocer
y
Net
w
o
r
k
handling
k
dr
y
grocer
y
g
oods,
such
as
ce
r
ea
l
s
a
n
d
snacks
,
a
n
d
t
h
e
Re
g
iona
l
Network
moving
k
primari
ly
genera
l
merc
h
an
d
ise
,
suc
h
as
h
ouse
h
o
ld
c
l
eaners
,
paper
t
owels
,
to
y
s
a
n
d
e
l
ect
r
o
ni
cs.
In
2006
,
t
h
at
chan
g
ed wh
en
approximatel
y
4
,
000 i
te
m
s
s
witc
h
e
d
networ
k
s.
N
ow,
h
ig
h
-ve
l
ocit
y
i
tem
s
–
gro
c
ery
an
d
genera
l
merc
h
an
d
is
e
–
a
r
e
co
m
b
in
ed
a
n
d
se
n
t
to
t
h
e
sto
r
es
fr
om
t
h
e
“Hi
g
h Velocit
y
Di
st
ri
but
i
o
n
Ce
n
te
r
s.”
T
hi
s
inn
o
v
at
iv
e
“Remix”
m
ea
n
s
”
i
te
m
s
n
eeded
m
ost
b
y
custo
m
e
r
s
a
rriv
e
at
t
h
e
sto
r
e
on
one
truc
k
,
so
t
h
ey c
an
b
eun
l
oa
d
e
d
an
d
move
d
f
aster
t
ot
h
es
h
e
l
ves.
W
ea
l
so c
an
reduce
t
h
e
n
u
m
be
r
of
add
i
t
i
o
n
al
f
re
g
ional
d
i
st
ri
but
i
on
ce
n
te
r
s
w
e
’l
l
n
eed
in
our
n
etwor
k
go
i
ng
f
orward.
S
tore
s
ge
t
improve
d
merc
h
an
d
is
e

ow

an
d
in-stoc
k
,w
h
i
le
W
a
l-M
a
r
t
r
educes
i
ts
ca
p
ita
l
spendin
g
n
eeds.
Global Procurement: Establishing Category Specialists
Know
l
e
d
g
e
i
s
po
w
er
,an
d
in-
d
ept
h
k
now
l
e
d
ge
is
critica
l
w
h
e
n
i
tc
omes
t
oc
h
oosin
g
m
e
r
c
h
a
n
d
i
se
su
pp
liers fr
o
m
a
r
ou
n
d
t
h
e
w
o
rl
d
to
de
liv
e
r
t
h
e
ri
g
ht
mix
of
quality
f
a
n
d
v
a
l
ue
to
W
a
l-M
a
r
t
custo
m
e
r
s.
Th
at
’
s
wh
y
Gl
oba
l Pr
ocu
r
e
m
e
n
t
i
s
establishin
g
g
roups
of
tec
h
nica
l
f
exper
ts
–
specia
l
ist
s
t
h
at
f
ocu
s
on
t
h
e
many
i
mportant
d
ynamics
of
a
f
p
articula
r
category
purchase.
y
F
or
exam
p
le,
in
a
pp
arel, Gl
oba
lPr
ocu
r
e
m
e
n
t
h
as
brou
g
h
t
toget
h
er in
d
ivi
d
ua
l
sw
h
o
h
ave
a
specia
l
ize
d
un
d
erstan
d
ing
of
var
i
ous
f
appare
l
man
-
ufacturin
g
techni
q
ues
,
sc
r
ee
n printin
g
,

nishing,

etc.
–
as
w
e
l
l
as
in
d
ivi
dua
l
s
wh
o
h
a
v
e
a
n
e
x
te
n
ded
understandin
g
of
di
f
e
r
e
n
t

f
ab
ri
cs
suc
h
as
cotton
,
s
y
nthetics
,
kni
ts
an
d
w
o
v
ens.
T
h
ese specia
l
ty
gro
u
ps
wor
k
closely
k
toget
h
e
r
wit
h
o
u
r
t
ea
m
mem
b
ers
res
p
onsibl
e
f
o
r
et
hi
cal
sourcin
g
a
n
d
lo
g
istics. I
t
’
s
a
ll
to
m
a
k
e
ce
r
ta
in
t
h
at
ever
y
da
y
w
e
b
ring
o
u
r
cus
t
omers qua
l
ity pro
d
ucts a
t
un
b
eata
bl
epr
i
ces.