Spielwarenmesse: Walmart Canada’s new infrastructure development fee raises concerns

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Walmart Canada’s new infrastructure development fee raises concerns

12. August 2020 12:50 h

According to Walmart Canada, the new fee aims to recover some of its $3.5b modernisation costs

By toyworldmag.co.uk

  • Toy companies in Canada and the US are reportedly shocked by the announcement of a new fee, which Walmart Canada published in a letter to more than 3,000 suppliers, signed by chief executive Horacio Barbeito and chief merchandising officer Kieran Shanahan.

Effective from 14th September, Walmart Canada will begin applying an infrastructure development fee of 1.25% of the cost of goods purchased by Walmart and for products sold through Walmart.ca or its other e-commerce groups. Walmart Canada will apply an additional e-commerce development fee of 5% on all sales of products purchased by Walmart. These fees come on top of already negotiated and finalised vendor prices.

Walmart further announced a major cash injection aimed at staying current with shopping habits, which have shifted dramatically toward online ordering during the pandemic.

The $3.5b investment, to be spent over the next five years, will go toward expanding Walmart Canada’s online ordering capabilities, particularly in the grocery delivery business, building two new distribution centres and upgrading 150 of the retailer’s 400 Canadian stores with new technology, including equipment to process payments anywhere in the store.

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