Private Label Strategy

NINE

Partner Effectively to Craft Win-Win Relationships

Procter & Gamble’s annual sales to Wal-Mart: $10 billion

TO VISUALIZE the power of retailers, it is interesting to consider the percentage of a manufacturer’s global sales that Wal-Mart, the world’s largest retailer, accounts for. For example, Wal-Mart is responsible for 28 percent of Dial’s sales, 25 percent of Clorox’s revenues, and 16 percent of Procter & Gamble’s turnover (see table 9-1). These numbers have huge implications. It means that Wal-Mart bought products worth $9 billion and $4.5 billion from Procter & Gamble and Kraft, respectively. P&G has since acquired Gillette, and Wal-Mart now accounts for more than $10 billion of P&G sales—exceeding the GDP of Jamaica. In addition, Wal-Mart ...