This allowance supports Wal-Mart’s investment in new stores which may help suppliers grow their market share.
Discount is typically 10% or greater (5%-10% based on Walmart recommended numbers- located under OSA-“Help”)
Stores that are relocated, renovated or expanded are considered new stores
Percentage is applied to each line item for a new store on all POs generated prior to grand opening date. Allowance is applied to all items when the store is flagged for grand opening prior to the conversion, expansion or relocation. Stores can be flagged to grand opening as early as 180 days for expansion, remodel or inbox conversion, 120 days for new stores and 90 days for relocated stores An asterisk will appear beside the new store number on all POs created prior to the grand opening date. Where there is no grand opening, in the six month period immediately following the date on which the asterisk was first applied to such store purchase orders are eligible for new store discount
For type 20, 22, 40 and 42 warehouse re-orders, the accounts receivable system recognizes when the stock is pulled for distribution to the new store. Walmart mails a report either monthly or quarterly (depending on the deduction cycle frequency)) that details the item, quantities shipped, and the discount amount.
For type 67 direct to store / ship & bill orders, the system will calculate the new store discount.