What: Wal-Mart’s been a knight in shining armor during this recession – as much as we love to hate the retail giant – but now there may be even more cause for celebration. Wal-Mart and merchandise provider Li & Fung have just signed a sourcing deal that could make life for a Wal-Mart buyer much easier and more efficient.
What They Say:
The alliance between the companies is expected to allow Wal-Mart to benefit by consolidating a part of its multibillion-dollar sourcing portfolio that supplies the goods it sells in stores. The core of the company’s overall global sourcing strategy will be to continue increasing direct sourcing of its own brands, Wal- Mart said in a statement.
What We Say: When Wal-Mart’s saving money, that probably means you’ll be saving money at some point, too. What this also means is that Wal-Mart has easy and almost superior access to a wealth of goods – Li & Fung has clients like Target and Liz Claiborne– and is really cementing its takeover of the retail industry. We can only hope that as Wal-Mart gets bigger (is that even possible?), it remembers how it got there – selling cheap stuff.