April 11, 2005

Slotting Fees are NOT Efficient - Wal-Mart is

Over at T&B, I noted a study by two Yale professors that showed empirically that slotting fees yielded economically efficient results. This was popularized in Progressive Grocer, which then received very negative Wal-Mart related correspondence:

The Yale/Cornell Study could not be farther from reality.

[T]radition[al] grocery distribution companies such as Winn Dixie, Safeway, Kroger, etc. are losing ground and failing...

-- They have attempted to make money buying goods rather than selling goods...

I think that your organization would be wise to explore these issues with manufacturers that find it much more profitable to do business with Wal-Mart and avoid all of the above, which is putting even more pressure on the traditional grocers.

Ouch. Take that Fast Company.

Posted by Kevin on April, 11 2005 at 10:33 AM