My product was on the modular for the reset, but it no longer has a mod flag or is authorized at the store. Why?
1. Constant Modular Out of Stocks and OTIF Issues. No product on the shelf means no sales. With so many suppliers competing for space on the modular, elimination can be the result of failure to fill the order.
2. Reputation: Trend and Social Media. If an item is no longer relevant, or 'on trend," Walmart may choose to take it off the modular early. It is important to stay on top of category shifts using syndicated data in conjunction with monitoring the item's sales. When talking about the item's public perception, the influence of social media. If an item is being portrayed negatively online, it can be taken off the modular. However, the online presence works in favor of the supplier as well. Your item's online presentation is gaining more attention from Walmart merchants. As Walmart moves toward an omni-channel retailer, your online content will become even more important and will likely be considered during the modular relay process going forward.
3. Duplicative Items in Modular: If an item is duplicative within the category and there is cannibalization going on, the buyer may choose to remove a specific item. When this happens, it is up to the supplier to be proactive in setting their item apart. Focus on those items when they first start struggling. Bringing innovation to the brand and developing a growth strategy early with the merchant team is key.
4. Misuse of Category Data: Walmart trusts suppliers with inside information and data. Used inappropriately, even with the best intentions, it can be detrimental to the relationship. Category data some suppliers have is incredibly important to the relationship between the buying team and the category advisors. It is very specific data shared just with the advisor's role and it allows the buyer and the merchant to make the best decisions for the category. That being said, it's imperative that the data is not being misused. Misuse can include sharing it with your internal sales and marketing teams. Often times the category advisor discusses total category innovation and competitive new items with their advisors. Sharing this information would be similar to insider trading in the stock market. IT gives one supplier an advantage over the others. Suppliers can lose advisership. In extreme situations they can be kicked out of Walmart.
5. A Poor Working Relationship. It all goes back to relationships. When one of the parties is difficult to work with, the common goal becomes jeopardized. A bad relationship between the buying team and the supplier has kept an item from becoming successful. It can be cut from the next line review or even removed before the modular season ends. There's a lot of work involved between both teams to ensure an item is successful (in-store and online). Without a strong relationship between the merchant team and supplier, the hiccups and bumps in the road that invariably happen can be that much more difficult to manage when the relationship is already a rock one.