Wal-Mart returns SKU’s to gain edge against competitors

Bentonville, Ark. Wal-Mart Stores will bring back a lineup of products removed from shelves earlier in order to entice shoppers with a wider selection of merchandise.

According to a report by Bloomberg, Wal-Mart met with suppliers about reinstating items to keep customers from going to other stores.

Wal-Mart is returning some health and beauty supplies, cereal, pet treats, soda and laundry detergent.

“Wal-Mart cut too deep and now they’re going back to manufacturers,” Michael Kantor, CEO of New York City-based Promotion Optimization Institute, told Bloomberg.

Last year, Wal-Mart reduced the number of merchandise varieties, or SKUs, sold in the United States in categories such as laundry detergent and bedding. U.S. stores cut inventories by 7.6% while increasing sales by 1.1%.

“In some instances, we are returning SKUs to the floor; it is evolutionary and ongoing,” Linda Blakley, a Wal-Mart spokeswoman, told Bloomberg. “Based on customers’ response, we may return an item to the shelf. At the end of the day, we want to have what she wants at a good price.”

The decision to bring back items isn’t tied to store-traffic issues in the fourth quarter, Blakley said.