Key Points:
- Walmart will convert Vizio into a private label brand and stop selling Vizio TVs at rival retailers by the end of the year.
- A memo reviewed by Bloomberg News said more than 20 of Walmart’s 90-plus private label brands generate more than $1 billion in sales each year.
- Walmart acquired Vizio for more than $2 billion nearly two years ago, a move predicated on Vizio’s potential in the advertising business.
Walmart plans to convert electronics brand Vizio into a private label by the end of the year, according to a report published over the weekend.
The report, from Bloomberg News, is based on an internal memo reviewed by the financial news outlet that said Walmart intends to pull Vizio from competing retailers and sell its smart TVs and soundbars exclusively at Walmart and Sam’s Club stores, as well as their associated websites.
The decision comes nearly two years after Walmart agreed to pay more than $2 billion for Vizio, a move that was largely predicated on the smart TV maker’s potential in the retail advertising marketplace. At the time, executives at Walmart said Vizio’s connected TV platform would pair nicely with the retailer’s own advertising business, called Walmart Connect.
“Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us each week,” said Seth Dallaire, the Executive Vice President and Chief Revenue Officer at Walmart U.S., in a statement issued at the time of the acquisition. “We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment.”
The decision to make Vizio a private label brand is the latest move made by Walmart since the acquisition was completed. Earlier this month, The Desk was first to report that Walmart intends to install Vizio’s SmartCast operating system on future models of its Onn-branded smart TVs. Onn TVs previously used a licensed version of Roku’s operating system; Onn’s streaming media pucks will continue to run Android TV for the time being.
Both moves are part of a broader strategy to bolster Walmart’s media and advertising offerings. According to the memo, more than 20 of Walmart’s 90 private-label brands currently generate over $1 billion in annual sales. By folding Vizio into that portfolio, Walmart aims to not only capitalize on its established consumer reach but also create a proprietary hardware and advertising pipeline that can differentiate it from rivals.
By selling Vizio TVs on an exclusive basis, Walmart intends to leverage Vizio devices and operational data to drive its advertising business, industry observers note.
The strategy also aligns Walmart more closely with Amazon, its chief rival in the retail media space. Amazon already markets its own line of smart TVs and streaming devices under the Fire TV brand, integrating hardware and ad technology into its broader e-commerce ecosystem.
Vizio began in 2002 with a mission of selling low-cost, high-definition TVs that offered new features craved by consumers. The brand took off after signing a retail distribution deal with Costco a few years later.
