Wal-mart

Wal-Mart is sourcing more local produce for its supercenters and Neighborhood Market stores in a bid to offset of rising transportation costs and keep prices in check. In recent months, the retailer has seen a surge in shoppers visiting its stores in search of cheaper groceries as food prices have soared.

The retailer says it has increased the number of local US growers it works with by 50 per cent in the past two years and would like that figure to continue rising in the years ahead.


It is set to source around US$400m of locally grown fruits and vegetables from farmers across the country this year. “Local” is defined as produce sourced from the same state in which it is sold.

“When we’re buying local, there are less trucks on the road, less miles that produce is travelling and therefore less fuel,” said Pam Kohn, Wal-Mart’s general merchandise manager for grocery.

Earlier this year, Wal-Mart’s chief financial officer Tom Schoewe singled out rising fuel prices as a cause of concern and said transportation costs would remain a “potential headwind” for the rest of the year.