This story from CNN Money further documents the optimization efforts at Walmart, it is fascinating to watch national “brands’ scramble to justify their existence in a retail world in which smart business decides product placement.
Dumped! Brand names fight to stay in stores
Don’t be shocked if you can’t find your favorite salad dressing or mouthwash on your next trip to Walmart.
Large retailers — including Walmart, the world’s biggest — are wrestling with having too many types of brand-name products. At the same time, shoppers are buying less and looking for bargains.
So unless a particular brand is a top seller in its category, it’s getting knocked off the shelf — and sometimes getting replaced by a cheaper store brand.
For example, Walmart recently removed Glad and Hefty-branded storage bags from shelves, replacing them with its own lower-priced Great Value brand, according to the parent companies of both products.
In the case of Hefty, parent Pactiv Corp. told CNNMoney.com that Walmart reversed its decision, and will return its products to shelves this spring — after Pactiv agreed to make the Great Value bags that will sell alongside the competing Hefty product.
“Hefty was off Walmart’s shelves, but we are being brought back,” said Matt Gonring, spokesman for Pactiv Corp.
Bill Pecoriello, CEO of market research firm ConsumerEdge Research, expects Walmart and other sellers will trim several name-brands across categories in coming months, or negotiate deals to get better pricing.
According to Pecoriello, those categories at greatest risk of losing brands are everyday-type purchases such as household products, toiletries and food staples.