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Gilette posts

JockStocks: Tiger will be okay ... trust me

Posted Dec 4th 2009 12:00PM by Mark Fightmaster (RSS feed)
Filed under: Columns, Business of Sports

The Tiger Woods drama has ballooned since I last looked at the situation. Of course, I focused a tad more on the situation for Tiger's sponsors. I want to continue that look, but I want to look at why Tiger's sponsors will stand by him, why we are so fascinated by the situation, and the difference between Tiger and Michael Phelps (a.k.a. Aquaman).

First things first, this will not impact Tiger's relationship with any of his sponsors. No matter what you think happened or why the situation happened, Tiger was cited for a traffic violation and will pay the fine with money out of his change jar. Was his act immoral? Yes. Was the act inexcusable? Yes. Is the act something he will be reminded of publicly (and privately) on a near daily basis? Yes. Should his sponsors jump ship and run? No.

Continue reading JockStocks: Tiger will be okay ... trust me

Wal-Mart's inventory decisions having negative effects on its vendors

Posted Apr 28th 2006 3:25PM by Brian White (RSS feed)
Filed under: Bad News, Rumors, Industry, Rants and Raves, Wal-Mart (WMT)

It seems as if the world has heard this story before. Well, we're here to hear it again. Wal-Mart's efforts to drive inventory out of its lair and into the lairs of its vendors (for many reasons, including inventory-carrying costs) have angered some of its largest vendors, making the relationship between themselves and Wal-Mart a little blue -- companies like Procter & Gamble and Hershey. What's the deal, you might say?

Well, for one, Wal-Mart wants to continue having its vendors fight for shelf space by driving down inventory growth to half (or less) of sales growth. That puts pressure on vendors to grow sales at a rate where they can accurately predict turns they'll need to make to Wal-Mart. This is no easy task, even with Wal-Mart's famously-fantastic information systems that give an unprecedented amount of data to its vendors at all times. In fact, Wal-Mart is almost just a "storage warehouse" for many vendors, since they own their own inventory until it's sold at point-of-purchase. A neat concept, Wal-Mart. Just don't irk your customers.