NEW YORK – In an effort to turn around sluggish sales in the United States, Walmart is pressuring suppliers to forgo their joint marketing investments with the retailer and instead cut costs on their products, reports The Wall Street Journal, adding that companies typically earmark a portion of the budgets for product displays and advertisements with Walmart.

The news source notes that Walmart has a reputation for pressuring its suppliers to keep prices low, but the retailer’s new leadership has “embraced the concept with fresh vigor,” as Walmart has seen its price advantage over the competition erode since the recession ended. 

“With the growth of dollar stores and other discounters, Walmart is facing ever more competition on price, which for many customers is the most important selling point,” writes the Journal.

The pricing message was relayed to suppliers during a private meeting in February. “They kept pushing, ‘We’re going back to basics, it’s all about low pricing,’” a supplier who attended the meeting told the news source.

Deisha Barnett, a Walmart spokesperson, commented that the effort reinforces the company’s long-standing business strategy to keep costs low. “It’s a proven business model that works,” she said. “We think the smart investment is to put the dollars into price.”