ROGERS — Wal-Mart wants to give customers groceries tailored to their desires because the company knows customers’ tastes differ from area to area.
The challenge is meeting those needs, said Jack Sinclair, executive vice president of the grocery division for Wal-Mart. The retailer faces competition from different groceries across the country, and it wants to go head-to-head with each one, he said.
A current advertisingcampaign compares receipt prices between Wal-Mart with an area’s other top grocer. Sinclair said that shows Wal-Mart saves consumers money overall and lessens the impact from deep discounts other retailers use on selected items. He said offering everyday low prices builds trust with customers.
“We need to operate morelocally in food than any other category,” he told about 500 people Wednesday during the Bentonville/Bella Vista Chamber of Commerce’s WalStreet Speaker Series.
Groceries accounted for 55 percent of net sales for Wal-Mart U.S. in the last fiscal year, which ended Jan. 31. The U.S. division reported net sales of $264 billion forthe year.
Sinclair used beer sales to demonstrate the local focus. He said the company has 3,900 combinations of beer products in its stores to meet an area’s demographic and income levels, regional brands and trends. A recent weekly report showed a 12.4 percent increase in the variety of al-cohol products the company sells in the U.S. The jump focused on providing more regional beers, expanding single beer choices and increasing cider selection, he said.
Wal-Mart recently began using the Nielsen Co. to track sales data, and Sinclair said it is helping fill the gaps.
“The data allows us to move in a more intensive way,” he said.
Michael Anderson, national account manager for Diamond Foods, said the idea of localizing sales items is not new, but is something he will take a closer look at.
“It’s about drilling down to the modular assortment,” he said. “We need to take what we do well in the market and do it in more markets.”
The Bentonville/Bella Vista Chamber of Commerce’s WalStreet program is designed to offer educationand social opportunities to Wal-Mart vendors. It is held at least four times a year and features various Wal-Mart executives.
Businesses must be Wal-Street members to participate. Membership fees range from $300 to $2,000 annually based on the number of employees.
The next program is 10 a.m. Nov. 27 with Stephen Quinn, Wal-Mart’s chief marketing officer. Reservations are required.
Business, Pages 21 on 09/27/2012