TRENDS 2016 WORKING WITH RETAILERS What They Are Thinking about Walmart's statement regarding marketing/promotional expenditures "In the toys business, this statement is really no different than what they have been telling us for years." " While the statement increased pressure to provide EDLP, we stood firm that our marketing budgets would not move to price. Instead, we'd work collaboratively to inspire shoppers with solutions to drive trips and baskets and promote innovation." " We're rethinking approach; e-commerce is growing." " Typically the vendors we work with - Home Depot, Lowes and Menards - all demand us to spend more money on store-related marketing." " It has put a strain on our relationship with Walmart." "Their myopic focus on cost has and will continue to negatively impact the consumer experience and, long term, the loyalty to their stores." " This led to an even greater focus on price triggers vs. marketing. Also, buyers were less willing to partner on program and merchandise development." "Co-marketing programs were eliminated, causing a shift in how programs were executed at Walmart." " There's less collaboration."