Wal-Mart Responds To Organics Issue, I Still Don’t Buy It.

No Comments

----------- Sponsored Links -----------
----------- Sponsored Links -----------

On Friday, you might remember that I linked to a story about how Wal-Mart was rethinking its strategy on selling organic food. The author of the article said that Wal-Mart was going to stop selling organics because…no one was buying them. Well, Wal-Mart released a letter yesterday “fighting back” against this article, and it is floating around on the internet. While they are saying they still are going to sell organic food, maybe they might want to look into actually selling organic food.

Here is the letter floating around out there, take from it what you will:

April 13, 2007

Dear Editor,

Pallavi Gogo’s article, posted April 12, 2007, on Businessweek.com, is an erroneous and inaccurate representation of Wal-Mart’s commitment to providing our customers with affordable access to organic products.

We have been selling organic products in our Supercenters and Neighborhood Markets for many years and, due to customer demand, announced plans to double the organic food offerings in those locations in March of 2006. We quickly met that goal and even exceeded it in communities where there is an exceptionally high demand for organic offerings. We continue to see steady customer interest in buying quality organics at great prices.

We realize that the customer base in each of our communities is unique, so we tailor the assortment in each of our stores to meet our customers needs. This is part of our long-standing “store of the community” philosophy of matching the mix of merchandise with the customer base and demand in each specific community. At a Bear Stearns investors conference on March 8, 2006, Wal-Mart executive Stephen Quinn announced, “We’re soon going to have over 400 SKUs (stock keeping units) of both fresh and brand name superior organic foods available at the Wal-Mart price. Today we’re proud to offer significantly more than that company-wide, which is completely in line with our plans. This enables specific locations to customize their assortment of organics to fit the consumers in their community. This simply makes good business sense. We’ve used this same philosophy of tailoring our merchandise mix for each store for various categories for more than 10 years.

As a company that’s always working to provide our customers with the best products at the best value, we determine what we’ll buy based on ongoing assessments of quality, price, customer feedback and other factors. Organic apples are one of the top selling organic produce items at Wal-Mart, along with carrots, citrus, lettuce and packaged salads. Far from “backing off,” sales for Wal-Mart’s organic produce for 2006 were at a growth rate well above the industry average of 13.7 percent, based on data from the Organic Trade Association.

Bottom line, Wal-Marts growth in the organics category will continue to be reflective of the demand and we will continue providing our customers with the organic products they desire at low prices.


Karen Burk
Wal-Mart Corporate Communications


----------- Sponsored Links -----------
----------- Sponsored Links -----------

Leave a reply

Your email address will not be published. Required fields are marked *