Walmart

Walmart’s interpretation of EDLP and a desire to simplify operations with a uniform supplier agreement sparked confusion this week among those unfamiliar with the company’s business model.

New York -- Walmart’s Neighborhood Markets format offers a compelling source of new sales growth for the nation’s largest retailer, according to a report by Moody’s.

Despite strategic shifts to compete more successfully with the company, traditional supermarkets will feel the pressure as Walmart moves to increase its already dominant share of the US grocery segment.

While 2014 was rocky for a great many retailers, with several thousand store closings across most categories of retail, the first half of 2015 has seen some encouraging signs of a modest resurgence in certain retail sectors and from select brands. The higher numbers of store closings are far from over, and it would not be accurate to refer to 2015 as a total turnaround, but it does seem noteworthy that there are significant categories of retail that have aggressively moved to capitalize on opportunities.

Conshohocken, Pa. – Home furnishings giant Ikea is increasing the minimum wage it pays to U.S. employees in stores and some distribution centers for the second straight year.

According to the Associated Press, Ikea’s average U.S. minimum hourly wage will rise about 10% to $11.87 from $10.76 as of Jan. 1, 2016.

Walmart Neighborhood Markets offer a compelling source of new sales growth for the company, Moody’s says in a new report. 

Despite strategic shifts to compete more successfully with the company, traditional supermarkets will feel the pressure as Walmart moves to increase its already dominant share of the U.S. grocery segment.

Menlo Park, Calif. – Facebook may not have anywhere near the retail sales volume of Wal-Mart, but in at least one important financial metric the social media network has overtaken Wal-Mart. According to the Associated Press, Facebook has knocked Wal-Mart out of the Standard & Poor’s list of the top 10 most valuable stocks.

All good things must come to end — including, after nearly four years, my contributions to this column. “Retail Rap” will soon be forging on without me. This is the first of two final columns I’ll be contributing, and I’ll beg your indulgence if I wax nostalgic at times in this, column number 99, and in my last submission two weeks from now, Retail Rap number 100.

Hong Kong – A subsidiary of global export company Li & Fung is partnering with two Chinese department store retailers to open as many as 300 stores in the Shanghai free trade zone. Li & Fung Trading (China) Holdings Ltd. is forming a joint venture with Shanghai Bailian Group Co. Ltd. and Beijing Wangfujing Department Store (Group) Co. Ltd. Li & Fung holds a 20% stake and each department store chain owns a 40% stake.

Bentonville, Ark. – Wal-Mart Stores Inc. will no longer sell merchandise featuring the Confederate flag in its stores or online. The retailer is removing the flag, long a source of controversy due to its connections to slavery and use as a symbol by white supremacists, in the wake of a racially-motivated mass shooting at a historically black Charleston, South Carolina church.

Shopper marketing firm Saatchi & Saatchi X has promoted one of its senior executives to be its next president.