After Walmart Stores Inc. (Bentonville, Ark.) and Moosejaw (Madison Heights, Mich.) partnered recently to launch a premium outdoor online shop within Walmart.com, several of the brands featured have asked the retailer to remove their products.
According to the Wall Street Journal, within days of the debut, brands Deuter, Leki and Black Diamond Equipment reversed course on their decision to be carried by the big-box brand. The companies cited calls of concern from outdoor retailers, who were worried the mass merchant could create a race to the lowest possible prices and stifle competition. In some cases, WSJ said, outdoor retailers told brands they would stop carrying their products altogether if the products were not removed from Walmart.com. Walmart has obliged their requests for removal.
The difficulties Walmart is having represent its struggle to carry premium products while still offering its customers low prices. Outdoor brands are also facing a struggle in today’s retail. In the most recent quarter, Walmart added about 1100 new brands to its site, including premium products through its Lord & Taylor (New York) partnership.