Retail giant Wal-Mart Stores, Inc. WMT has launched a unique “Women Owned” logo that will be featured on products made by women-owned businesses. These products will be available both in stores and online.
The move is a part of its goal to source more products from women-owned businesses, which will help in empowering women around the world. Walmart has thus collaborated with Rouge24, a women-owned graphics agency and supports the Women’s Business Enterprise National Council (WBENC) and WEConnect International. Further, all women-owned businesses that are WBENC and/or WEConnect certified are eligible to display the logo on their product packaging at Wal-Mart’s stores.
Further, Wal-Mart will feature six products this month with the “Women Owned” logo in its stores, including Milo’s Tea, Jelmar CLR Remover, HMS Mfg. Co Hefty Wastebaskets, Goldbug Inc. Carter’s Newborn Shoes, Ariela and Associates Smart & Sexy Bra, and Ziegenfelder’s Budget Saver Pops. Also, Wal-Mart has launched a new page Walmart.com/WomenOwned that will showcase products made by women-owned businesses.
Women-owned businesses contribute over $1.3 trillion to the U.S. economy. The initiative is expected to help Wal-Mart drive sales.
We note that the retailer has been undertaking steps to boost sales. In the recently reported fourth quarter fiscal 2015, Wal-Mart delivered better-than-expected earnings, while revenues missed the same on currency headwinds.
Further, Wal-Mart expects to invest in e-commerce initiatives and in associates through higher wages and training in fiscal 2016, which in turn would put pressure on operating income. This is expected to pull down fiscal 2016 earnings and sales. (Read: Wal-Mart Beats Q4 Earnings on Comps Gain, Fx Woes Persist).
Walmart currently carries a Zacks Rank #4 (Sell).
Better ranked retailers include Ingles Market, Inc. IMKTA, The Kroger Co. KR, and Whole Foods Market, Inc. WFM. While Ingles Market sports a Zacks Rank #1 (Strong Buy), Kroger and Whole Foods Market hold a Zacks Rank #2 (Buy).
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