Wal-Mart Will Stop Selling Its Sales Data to Industry Reseachers in July24 May, 2001 By: Hive News
Wal-Mart, the world's biggest retailer, is refusing to share its sales information with the retail industry and the market research companies that measure industry growth, reports IndustryStandard.com.
As of July, Wal-Mart will no longer sell its cash-register data to market researchers like AC Nielsen and IRI. The pullout presents a challenge to the $6 billion research sector, which aggregates sales data to sell to manufacturers and analysts, says the Standard.
Wal-Mart has apparently concluded that other companies need data from Wal-Mart more than it needs sales data from its competitors. "We have figured out a way to obtain thatinformation ourselves," said Wal-Mart spokesman Bill Wertz.
Wal-Mart's move could a signal it wants more money out of research firms. Industry analysts estimate that each company pays Wal-Mart several million dollars annually, says the Standard, and speculate the retailer may just want better terms -- or sell the data directly to manufacturers.
Other retail chains, likeKmart and Target, continue to provide such data. But without the Wal-Mart data, some analysts say, surveyed data might be less reliable and more prone to human error. And it could take a month to deliver the data to manufacturers, while Wal-Mart's point-of-sale data can be ready in as few as 12 days, says the Standard.