Change moves fast in Bentonville, and this conversation puts you right at the center of it. We connect the dots from Walmart’s early tech shifts—scanning, EDI, and Retail Link—to the next turning point: practical AI that speeds real work, from writing and workflows to design iteration that cuts weeks off development. Along the way, we unpack how tariffs and sourcing strategies are reshaping price points, merchandising, and the mix on the shelf.
We sit down with veteran operator and consultant John Reeves and 5G Consulting CEO Brett Dye to explore what selling to Walmart and Sam’s Club really requires today. The insights cut through hype and get tactical: why store newness still sparks discovery, how e‑commerce should amplify—not replace—core merchandising, and where AI already delivers value in supplier teams. Brett shares the story behind 5G—built on deep Walmart DNA and focused on replenishment, e‑commerce, and sales execution—plus grounded advice for entrepreneurs preparing to pitch: know your core customer, nail the financials, and be retail‑ready down to the UPC.
Expect a frank look at tariffs’ ripple effects, from upper‑tier price lifts to looming pressure on opening price points. We examine diversification beyond China, the realities of nearshoring, and what it would take for U.S. manufacturing to make a meaningful comeback. Throughout, one theme holds: listening, speed, and adaptability win. With Walmart investing in AI training for associates, supplier fluency will become table stakes—just as Retail Link mastery did a generation ago.
If you care about retail strategy, Walmart supplier success, AI in merchandising and design, and smart sourcing under uncertainty, this one’s a must‑listen. Subscribe, share with your team, and drop a review with the biggest change you’re making after listening.
More About this Episode
The Growing Role of AI and Global Trade in Retail: What Walmart’s Leadership Means for the Industry
The pace of retail transformation is accelerating, and few companies are more central to that shift than Walmart. As the retail giant continues to shape global supply chains and innovate at scale, its evolving strategies in artificial intelligence and international sourcing are creating ripple effects throughout the industry. For those deeply embedded in the retail community, especially in Bentonville, these changes are not just headline topics. They represent immediate business considerations and long-term opportunities.
In a recent conversation with longtime retail veterans John Reeves and Brett Dye, we explored two pivotal areas impacting suppliers and retailers alike: the integration of artificial intelligence into business processes and the evolving global tariff landscape. These themes are reshaping how retail operates and how suppliers must adapt.
A Foundation Built on Experience
Both John and Brett began their careers in the stores, gaining firsthand knowledge of retail operations. John spent over two decades at Walmart in various leadership roles across the U.S., Canada, and Mexico. Brett, who also started in-store, worked at Shopko, Kmart, and Walmart before launching 5G Consulting. His Bentonville-based firm now employs more than 25 professionals with expertise in Walmart, Sam’s Club, and CPG operations.
Their foundation in store-level retail has given them a deep understanding of customer behavior, merchandising, and supply chain realities. That insight is proving critical as the industry transitions toward more tech-driven and globally sensitive operations.
Walmart’s Bold Move into AI
Walmart CEO Doug McMillon recently emphasized that artificial intelligence will impact nearly every job function. His statement, “Maybe there's a job in the world that AI won't change, but I haven't thought of it,” signaled a clear shift in how the company views the future of work.
Walmart is not waiting for AI to become mainstream. It is actively investing in its workforce through partnerships, including one with OpenAI, to provide AI training and certifications. The objective is to equip employees at all levels with the tools and understanding necessary to operate in a tech-enabled environment.
This commitment represents more than an internal upgrade. For the supplier community, it means expectations are rising. Suppliers must now be more agile, more informed, and increasingly capable of leveraging AI in their own processes. Whether it is forecasting, design, or communications, AI is becoming a fundamental business tool.
Brett shared how he already uses AI for drafting documents, organizing tasks, and conducting personal research. While he still considers himself new to the technology, it has already increased efficiency and reduced time spent on routine tasks. On the professional side, the ability to enhance customer-facing communication, develop better sales proposals, and process operational data more effectively is proving invaluable.
John added that some suppliers are beginning to integrate AI into design workflows. Instead of waiting weeks for product visuals or prototypes, suppliers are now using AI tools to generate dozens or even hundreds of design concepts in hours. This rapid ideation process allows for quicker decision-making and a faster route to market.
Learning from the Past to Prepare for the Future
Walmart has a long history of adopting transformative technology, often after a period of internal resistance. Examples include the introduction of handheld devices in stores, the rollout of EDI for electronic ordering, and the creation of Retail Link to share data with suppliers. Each innovation initially faced pushback but ultimately revolutionized how the company and its partners operated.
Artificial intelligence represents the next major leap. The challenge and opportunity now lie in how quickly the broader supplier community can adopt and adapt. As John noted, when Walmart takes a position on technology, the rest of the industry pays attention. The company’s AI push will likely set a new standard across the retail sector.
For entrepreneurs and emerging brands, this moment offers a unique advantage. Those who embrace AI early can create smarter business models, respond more quickly to market needs, and better align with Walmart’s operational expectations. As Brett emphasized, suppliers who understand how to analyze their own value chains and address operational gaps are better positioned to scale.
Tariffs and Trade: Navigating Global Uncertainty
While AI represents an exciting future, the present-day challenges of tariffs and global trade cannot be ignored. Suppliers are navigating significant uncertainty as tariff policies evolve, particularly in regard to imports from China and India.
Earlier this year, proposed tariffs reached as high as 130 percent for some Chinese imports. Although the final figure was reduced, the process revealed a larger issue: unpredictability in global sourcing. For businesses that rely on long-term planning and stable costs, such swings in trade policy create operational and financial instability.
Brett observed that the uncertainty, not just the tariffs themselves, has been the most difficult part for suppliers. Companies are unsure how to price products, whether to shift sourcing, or how to plan for future demand. Even as some sourcing transitions occur, the realities of supply chain complexity mean that sudden shifts are rarely seamless.
As for who ultimately bears the cost, the answer is layered. Retailers like Walmart strive to maintain price leadership, but suppliers often absorb part of the tariff impact in the short term to avoid losing shelf space. Over time, however, these costs are passed on to the consumer. As John pointed out, price increases are already showing up subtly, particularly in discretionary categories such as seasonal items, home goods, and apparel.
Opening price points, for now, are mostly protected, but as sourcing costs continue to rise, even those entry-level prices may be affected in the near future.
Rethinking Sourcing Strategies
To manage these risks, some suppliers are shifting production to alternative markets such as India, Vietnam, or Latin America. However, this strategy comes with its own set of challenges. These countries often lack the infrastructure and manufacturing maturity of China, leading to longer lead times and quality control issues.
Brett shared that some manufacturers are exploring U.S. production, especially in categories that were historically made domestically, such as textiles. While this idea holds potential, it also requires significant investment in machinery, labor, and logistics. The current ecosystem in the United States is not yet equipped to support mass-scale manufacturing across all retail categories.
The question then becomes: will retailers play a role in developing these alternatives? Walmart, with its scale and influence, could lead efforts to rebuild domestic capabilities by offering longer-term commitments and volume guarantees to manufacturers willing to invest.
John highlighted that this level of collaboration could not only reduce tariff exposure but also strengthen supply chain resilience and reduce reliance on a single country or region.
Retail Must Stay Agile
At the intersection of technology and trade, the future of retail is being written in real time. What becomes clear from conversations with experienced operators like John and Brett is that change is constant, and success depends on how well companies adapt.
Walmart’s renewed focus on AI is not a passing trend. It is a foundational shift. Tariffs and global trade volatility are not short-term disruptions. They are part of a new reality that businesses must manage consistently.
For suppliers and brands looking to thrive in this environment, the path forward involves more than reacting to headlines. It requires investment in capability, alignment with retailer expectations, and a proactive approach to learning.
Artificial intelligence will reshape how merchandise is designed, marketed, and sold. Tariffs will continue to influence sourcing decisions and pricing strategies. Suppliers that understand both dynamics, and adjust accordingly, will be best positioned for long-term success.
As always, those closest to the customer and the data will win. With Walmart setting the pace, the rest of the industry must keep up, stay informed, and stay ready.
