Wal-Mart Stores, Inc.
) is about to host an 'Open Call' event today where it has invited
more than 500 American manufacturers and suppliers to pitch
products in the country. This marks a step forward for Walmart,
which encourages domestic sourcing of products and sells them
During the open call, suppliers will meet with the company's
senior leaders and merchants to sell their 'Made in USA' products
at affordable prices through Walmart's stores, clubs and online.
Walmart's increasing purchases will thereby support American
Being the largest private employer in the U.S., Walmart took an
initiative in late-Jan 2013 to contribute to the revitalization of
the sluggish U.S. economy and intended to spend $50 billion in the
next 10 years to buy more American merchandise. (Read:
Walmart Leads Drive to Create Jobs
). Walmart now plans to invest $250 billion cumulatively over the
next 10 years, which will create one million jobs, including the
jobs in manufacturing and related services.
Walmart believes that the majority of the companies in the U.S.
have been facing macroeconomic headwinds for a long time. Moreover,
input costs overseas are very high, which limit U.S. companies to
produce goods outside the U.S. Wal-Mart has been struggling
with its revenues and profits since the past few quarters. The
company is therefore seeking new ways to boost revenue amid
macro-economic headwinds like budget-strained customers, reductions
in government benefits, higher taxes, tighter credit and higher
group healthcare costs.
According to data from Walmart's suppliers, two-third of the
products imported by Walmart can be made, sourced, assembled or
grown in America. Walmart, therefore, plans to focus on buying more
U.S.-manufactured products like sporting goods, fashion basics,
storage products, and games and paper products, which will not only
boost its domestic revenues but will also contribute to the revival
of the sluggish U.S. economy.
The commitment to increase domestic sourcing of the products it
sells and create jobs shows Walmart's dedication to find innovative
solutions to fix the economy. Walmart currently carries a Zacks
Rank #4 (Sell).
Better-ranked retailers include
The Kroger Co.
), all of which hold a Zacks Rank #2 (Buy).
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