Bruce Peterson, vice president and general merchandising manager of perishables at Wal-Mart Inc, the world's largest company in revenue terms, told PMA delegates that the secret to the behemoth's astonishingly rapid rise to domination is "agonisingly simple".

He said the chain, which was established in 1962 and only opened its first superstore in 1987, has based its entire growth strategy on the two pillar principles of offering consumers every day low prices and a one-stop-shop.

Peterson, also chairman of PMA, added that suppliers have played a major role in the US and overseas. Wal-Mart has more than 1,100 suppliers to its US stores and maintaining a diverse base, he said, is seen as key to future development.

"To achieve every day low prices, there has to be an every day low cost too," he said. "We have a passion that our suppliers should be making a profit, but also that by working closely together we want to have the most efficient supply chain possible.

"Collaborative marketing to the end consumer has been one of our strengths. We don't want our suppliers to view Wal-Mart as their customer," he said, adding that suppliers that buy into the Wal-Mart philosophy and understand the local needs and aims of the multinational organisation will be successful.

Peterson was taking part in a retail workshop, and was asked whether the produce industry has lost the capability to capture flavour. "We have put ourselves in a box," he said of the entire industry. "Retailers have tried to differentiate themselves by offering peaches, for instance, in November when no-one else can have them. This has put additional pressures on suppliers, but when produce tastes its worst, it costs the most, so it is also an opportunity.

"Could we go back to a time when we tell consumers that they can't have a product because it isn't in season? That would be very problematic," he said.

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