Why suppliers will welcome Wal-Mart

An excellent piece by Alan Mitchell, “Wal-Mart arrival heralds change for UK marketers” (MW June 24).

I suspect, however, that many packaged goods companies will welcome the Wal-Mart payment terms – that is, suppliers are paid when money changes hands at the checkout.

From my experience in the packaged goods sector, I remember the challenge of managing cashflow against a system in which products would “sell through” many times, but payment terms were “extended” to finance new store expansion, and other retailer investments.

Raoul Pinnell

Global head of brands and communications

OMM

London SE1

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