retail news in context, analysis with attitude

The Huffington Post has a story suggesting that while Walmart's commitment to buy more American goods to sell in its stores may be driven both by patriotism and a desire for positive public relations, it may also be that Walmart believes it will save the company money.

Michael Levy, director of the Supply Chain Institute at Babson College, suggests that "the shift to American-made products will allow Walmart to cut costs on transportation and inventory," and adds, “Walmart’s not going to do things that are going to cost them more money.”

The story goes on:

"Already about two-thirds of the products sold by Walmart's U.S. unit are American-made, grown or sourced, according to Reuters. But on Tuesday, the company announced it would aim to buy $50 billion more in U.S.-made goods over the next 10 years, in areas like appliances, sporting goods and towels." Plus, "as the cost of Chinese labor rises and the cost of energy for manufacturers in the U.S. continues to fall thanks to cheaper natural gas options, America is becoming a more inexpensive place to produce goods, said Michael Zinser, a partner at the Boston Consulting Group. Plus, it costs less to move goods when you’re closer to the source, he added."
KC's View:
I absolutely believe that the "Made in the USA" movement has real potential to get some traction and become a greater force. And not just because - full disclosure - one of MNB's sponsors is a company that provides "Made in the USA" certification. It just seems to make a lot of sense right now, politically and economically.