Consultants in the supplier community report that Walmart (NYSE:WMT) is asking for help in funding its Savings Catcher program.
Low pricing has been a sticking point for Walmart and will remain a major focus this year, according to Walmart CEO Doug McMillon. The retail leader will be requesting the best possible prices from suppliers, urging them to stay away from promotional pricing as it vies to keep its Everyday Low Price promise, reported The City Wire.
Last week Walmart started putting pressure on suppliers to reduce costs. The retailer asked vendors to spend less on in-store advertising so that Walmart can maintain its promise to offer lower prices than competitors.
The retailer's Savings Catcher price match application was rolled out in the summer of 2014 and guarantees the lowest prices against competitors. In September of 2014, the retailer reported $2 million in savings through the Savings Catcher program.
Walmart recently downsized the scope on its price matching, mostly in regards to pharmacy and packaged goods.
"It makes sense that Walmart would start to lean on suppliers to share in the cost of Savings Catcher, especially with Walmart's recent push for suppliers to cut back on promotional spend and instead put that money toward price reduction," Jason Long, CEO of Shift Marketing Group, told The City Wire.
The retailer is trying to compensate for the increased funding needed to pay employees' rising wages. In February Walmart announced plans to increase its starting wage, train employees in specialized skills, and give employees more say in their schedules.
-See this The City Wire article
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