Wal-Mart’s tight reign cuts costs

Wall Street Journal retail correspondent Bob Ortega certainly has “the read” on Wal-Mart. Detailing the company’s rise to the world’s largest retailer in his book In Sam We Trust, Ortega reveals some interesting facts about how Wal-Mart was able to price-cut its way to the top.

Life for prospective Wal-Mart suppliers may become even less rosy than those supplying home-grown gro cers Sainsbury’s, Safeway and Tesco.

Ortega says executives visiting the Wal-Mart’s “Pentagon” at Bentonville, Arkansas, are charged 25 cents for every cup of coffee they consume.

“Don’t waste a penny” is the message. Sainsbury’s, Tesco et al take note. The Diary expects you to be economical with the loo paper when your suppliers come to visit.

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