Wal-Mart to become first-ever retail partner for Nutrisystem

Posted Oct 8th 2009 12:40PM by Brian White
Filed under: Deals, Products and Services, Wal-Mart (WMT)

Nutrisystem Inc. (NASDAQ: NTRI) will soon be coming to your local Wal-Mart Stores Inc. (NYSE: WMT) location in the first partnership between the two companies -- and the first retail exposure for the venerable infomercial nutrition company.

Nutrisystem's 14-day "Starter Program" will start hitting Wal-Mart shelves in over 3,200 locations starting now -- and just in time for the holiday rush and also in time to become somewhat entrenched leading up to the 2010 New Year's holiday (and all those resolutions). Like many other brands, though, will this tarnish Nutrisystem's brand? Nah -- or Apple Inc. (NASDAQ: AAPL) would have never allowed its chic and still uber-popular iPhone for sale inside Wal-Mart either.

The problem is this: is Nutrisystem prepared to handle the load if thousands (or millions) start buying its products now that they'll be in virtually all Wal-Mart U.S. locations? It's one thing to have a business chain set up to support direct marketing -- but it's another to ensure Wal-Mart doesn't drown the company (in a good and bad way). The Nutrisystem 14-Day program will be found in Wal-Mart's pharmacy section and will cost $148 -- so at least it won't be a bargain and literally fly off the shelves like that $3.99 case of Slim Fast.

Tags: Dieting, inthenews, Meal systems, Nutrisystem, Wal-Mart, Wal-Mart displays, WMT