Walmart Inc. plans to sell its online products at $10 and up to see higher profit margins on its e-commerce business, Reuters reported Feb. 8, citing four people with knowledge of the matter.
According to the sources, the big-box retailer is now focusing on dry grocery products such as sauces and soaps as well as general merchandise items, which are more expensive due to the built-in cost of delivering online-purchased products.
Marc Lore, CEO of Walmart's e-commerce unit, reportedly told suppliers such as Procter & Gamble Co., Unilever Plc, Kimberly-Clark Corp. and Clorox Co. during meetings that the company wants to focus on selling goods priced at a range of at least $5 to more than $10.
This move reportedly is a change of direction for the retailer since it usually drives lower prices for customers by pressing for bargain-priced items from its suppliers. Nevertheless, Walmart will still sell lower-priced items at its brick-and-mortar stores as it offers more expensive goods on its online portal.
Furthermore, Walmart would focus on generating retail profit instead of selling items online at a loss, the news agency reported, citing two people present at the meetings who were not authorized to speak on the record.
Walmart reportedly declined to comment on the meetings.
Procter & Gamble, Kimberly-Clark and Unilever also declined to comment, Reuters said. Clorox did not respond to requests for comment.
