on the 5th the "notice of trial" was issued. If it is in the expected time frame then probably no announcement. They knew of this prior to todays announcement so unsure why the market wouldn't be kept fully informed unless it was in line with what was previously announced?
YOW probably want the focus on expansion of distribution network not on litigation.
In regards to todays announcement it encompasses the walmart stores at all levels and walgreens IMO? That is 4500 odd so no double counting IMO. Most shops are serviced by more than one distributor so it should be about new unique venues so there is no double counting.
ML service theaters as well.
For those that didn't know ML was owned by walmart and then sold to BH . High volume turnover low margin business but constant as long as people buy stuff and large % of retail wallet goes through them. Huge advantage to BH to see retail demand through national orders before it shows up in any other statistics and must help their other investments!!
ML run walmarts grocery pick up drive through and bags in the trunk logitics now in 30 cities
This gives YOW distribution and warehousing a wider footprint by a national distributor many locations and any wholesale purchase can now be done from a electronic catalog listing. Offers a pathway via VTS to target and promote to areas they were obviously struggling to access or service . It is a outsourcing just like the toll manufacturing. With increased production scale this is a positive and stops integration issues with Walmart and any logistics capital expenses.
What I don't know is if YOW was already using them and this is like a re announcement a sit is now a broader agreement of ML choosing to also stock on their electronic VTS .
There are many parts to ML business and I am not clear if YOW was using other distribution, network previously and I am not sure if they are participating at all levels with this business including their procurement and logistics are they are independent businesses but integrated.
VTS is just Virtual Trade Show—7x24x365 online system that provides retailers with the opportunity to see hundreds of new products, promotions and deals without the expense, time loss or hassles of traveling to live trade shows. https://www.mclaneco.com/content/dam/mclane/mclaneco/documents/landing/printad_vts.pdf
Depending on full story it is just a ebay for retailers and YOW will pay ( probably) for a firtual booth in thier website and pay for promotion etc. Just a different form of marketing .
ML offer specialist planogram services etc to small , medium retail and groups . and have specialist software for participating retailers that all ow them to have "big store" information at many levels on their stock and business.
I dislikes teh lack of clarity in this announcement in regards to numbers as ML are distribution partners with our existing clients so I am unclear if we are still direct shipping to Walmart ( if we ever were) etc and what affect this has on our margins etc. I don't know USA retail landscape well enough to know product mix that is directly sources by majors or what is procured via distributors .
In regards to PX s, exchange, trading post commissary stores there is a big market on base ( 750 Of them and tax / duty free etc ) and there was a thread a year or so back in regards to supply to it. Military Brats are big business and also mail order to overseas or from overseas service personnel to family . Lots of family live on base. Currently 2 million personnel but plenty of others have DOD cards to buy at stores and family etc. . There is then reserves and coastguards along with retired and vetran personnel where they are allowed access but that may have changed. 3-4 with over 200,000 on base and more with 100k. https://en.wikipedia.org/wiki/Base_Exchange
YOW Price at posting:
$1.05 Sentiment: None Disclosure: Not Held
(20min delay)