Ad Age states here that Walmart is the new regulator. Odd to think that a retailer has enough power that it can move markets in such a way. Many times when I think of Walmart, I think about control over pricing. I guess some of the business school HBS case studies left their mark.
“Andrea Thomas, senior VP-sustainability for Walmart, the flagship U.S. retailer of the Walmart Stores, which also includes Sam’s Clubs and numerous chains overseas, said it’s really consumers setting the agenda, not the retailer. “Our customer is becoming much more articulate about needs in this space,” she said. “The best way to do it is to work together as an industry.”
This is one way that self regulation could work, as the 800 pound gorilla can make demands and push directives that if suppliers want shelf space, then they need to play by the rules.
On the surface that seems tough, but then again, with Government regulation and related politics, this method could drive much quicker results.