Wal-Mart Global Sourcing up 18% in United States
Home Textiles Today Staff -- Home & Textiles Today, 12/3/2010 2:11:39 AM
BENTONVILLE, ARK. - After overhauling its global sourcing structure earlier this year, sourcing is up smartly in various Wal-Mart Inc. markets around the world - up 18% in the U.S. and 19% overall. The goal for next year is to increase the total amount of direct sourcing for its global operations 25% next year.
Wal-Mart operates four hubs known as Global Merchandise Centers (GMC), with Li & Fung's stand-alone Direct Sourcing Group (DSG) dedicated solely to Wal-Mart business.
DSG is now Sam's Club's number one channel for product, vice chairman Eduardo Castro-Wright said during the company's analyst meeting today. "It's going very well," he said.
When private label food is added to the equation, Wal- Mart's GMCs and the DSG operation provide about 30% of the company's total product mix, with importers/manufacturers contributing the rest. The goal, over time, is to invert those numbers, with the shift slated at a 25% compound growth rate over the next five years, said Castro- Wright.
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