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The WalMart Effect


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Here's a post from a few months ago.

Wal-Mart Reportedly Reduces Contracted Operators

BENSENVILLE, AR — Last week, Wal-Mart issued notices to most of the estimated 25 operating companies that currently serve its 4,141 locations, stating that their services will not be required after April 30, at which time they must remove all equipment on location.

Reportedly, some of the largest operators who will lose these accounts have routes comprising around 1,000 pieces of equipment in 300 stores. Jon LeMire, Wal-Mart's director of new business development, advised that the change of policy was a "difficult decision," but ultimately said: "Please remove all equipment from Wal-Mart premises by April 30, 2008."

Sources close to the story said the retail giant has decided to contract all of its amusement services from three vendors: Sega, Namco and Coinstar.

Separately, Coinstar said it will move or remove about half of its cranes, bulk vending machines and kiddie rides from Wal-Mart stores and other retailers, citing "macro-economic trends negatively affecting the entertainment service industry." At the same time, the national operator said it will "significantly increase" the volume of Redbox DVD kiosks and coin-counting machines at these locations. Coinstar reported Q4 gross revenue of $133.3 million and a net loss of $37.2 million. For fiscal 2007, the company said it lost $22.2 million on revenues of $546.3 million

Just a note from Vending times, Good luck John


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