Walmart’s push for more co-op dollars

Catching up on some Retail Wire posts from the past week, starting with this discussion about Walmart. The retail giant is pushing its vendors for a proportionate share of their co-op dollars (or perhaps their ad budgets, period). Most commentators felt this was Walmart being its usual pushy self; I didn’t have an issue with it:

I assume Walmart is trying to grab its share of co-op dollars, not vendors’ total ad dollars. (Most of these dollars, especially for CPG companies, still need to be reserved for their own marketing efforts such as TV and promotions.) I don’t think Walmart’s request is unfair even if it sounds aggressive. Doesn’t it make sense (at least on paper) to support your largest customer at least with a proportionate share of co-op dollars? And in a climate where that huge customer is gaining share at the expense of almost every other competitor, doesn’t it make sense to make sure you are on the train before it leaves the station?

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