Executives at Walmart are planning their next move in anticipation of its newest rival — and asking suppliers to support their cause.
The European grocer Lidl, which has a track record for disruption, is preparing to open its first 20 United States-based stores this summer. The first locations are set to open their doors in the next few weeks. As a result, Walmart is asking suppliers to keep their prices low, according to the Consumerist.
According to the report, vendors have been told that Walmart should be paying 15% less than competitors at least 80% of the time. Additionally, the retail giant is asking suppliers to ship Walmart’s orders complete and on time, which would help keep items in stock, avoid unneeded re-orders, and take in an additional $1 billion in sales — a move that would benefit suppliers, as well.
Lidl is not a new competitor for Walmart. The retail giant’s Asda stores compete directly against Lidl and Aldi in Europe. As Lidl prepares its U.S. debut, however, Walmart is eager stay one step ahead — especially since its European Asda brand has failed to grow sales for 13 consecutive quarters, while Lidl, along with Aldi, have captured 12% of the market, the report said.
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