Walmart’s Emergent Low-Cost Sustainable Product Strategy

Abstract

This article traces the strategic initiatives that Walmart undertook over the last decade to implement its ambitious vision of selling more sustainable products. This effort has been characterized by a gradual shift away from customer-facing initiatives aimed at labeling sustainable products toward supplier-facing initiatives targeted at improving environmental or social performance without raising customer prices. It highlights the role of institutional intermediaries, transaction costs, and experiential learning in shaping firms’ capabilities to translate ambitious sustainability goals into operable, mass-market initiatives.