In 2019, Walmart will continue to take dead aim at Amazon and will ramp up its private label programs, according to a top industry analyst.
Bentonville, Arkansas-based consultancy 8th and Walton, which helps suppliers in their dealings with Bentonville-based Walmart, singled out five trends to keep an eye on at the retail behometh next year.
- A Major Move in the War with Amazon. “As they advance further into Amazon territory,” 8th and Walton advises suppliers, “ensure your products can be shopped IOPD (instore, online, pickup and delivery).”
- Updates to Accounting and Deductions. “The changes we saw to Walmart’s accounting process this year were subtle, but important. More may be in the works for 2019, but not rolled out as major announcements. Updates to OTIF will also bring changes to penalties, the dispute process and deductions inquiries.”
- More Detailed Supplier Analytics. “With more brands on the horizon, numbers alone won’t shine in your buyer meeting. Walmart merchants are asking for the story behind your peaks and valleys.”
- Early Changes to On Time in Full (OTIF). “Indicators point to another change announced at Walmart’s Growth Summit.”
- More Shelf Space for Private Label. “Walmart will continue to prioritize private label as they pursue millennial and Gen Z shoppers. With the recent announcement of a private label tech accessory line, Walmart is looking at more categories to grow options.”