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Wal-Mart Pushes Suppliers To Reduce Their Prices

March 31, 2015: 12:00 AM EST
Wal-Mart Stores Inc. is demanding its suppliers to cut their prices as part of the retailer's efforts to regain the leadership in the low-price retail segment and revive sales in the United States. According to the retailer, it has been urging suppliers to focus on lowering their prices instead of investing in joint marketing. Long known for its tendency to pressure suppliers into cutting costs, Wal-Mart's current leadership has adopted the idea “with fresh vigor.” Losing its price advantage against its rivals is one of the factors driving Wal-Mart's loss of market share, according to consulting firm Kantar Retail.
Paul Ziobro et al, "Wal-Mart Ratchets Up Pressure on Suppliers to Cut Prices", The Wall Street Journal, March 31, 2015, © Dow Jones & Company, Inc.
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