Walmart's Exclusive Deal with Vizio to Dominate Retail and Advertising

Walmart has made an exclusive deal with Vizio to compete with rivals in retail media and private labels. The acquisition of Vizio for $2.3 billion gives Walmart control of the television business and SmartCast advertising platform. Walmart plans to make Vizio a private label brand by the end of the year, making its smart TVs exclusively available at Walmart and Sam's Club. This move aims to strengthen Walmart's position in both retail and advertising.

Walmart Inc. has announced a significant strategic move in the retail media and private label space by acquiring Vizio and planning to make it a private label brand. The acquisition, finalized on December 3, 2024, included the purchase of Vizio's SmartCast Operating System for approximately $2.3 billion [1].

The primary goal behind the acquisition was to accelerate Walmart's Walmart Connect retail media business in the United States. By combining Vizio's advertising solutions with Walmart's extensive reach and capabilities, the retailer aims to offer new and differentiated ways for advertisers to connect with customers at scale [1]. This integration is part of Walmart's broader strategy to enhance its advertising business and boost product discovery.

Walmart plans to make Vizio a private label brand by the end of 2025, making its smart TVs exclusively available at Walmart and Sam's Club. This move aims to eliminate competition from other retailers, such as Amazon and Target, which currently sell Vizio smart TVs [2]. By doing so, Walmart seeks to strengthen its position in both retail and advertising.

The acquisition of Vizio marks Walmart's entry into the streaming services market and provides new content for its customers. The combination of Vizio's SmartCast platform and Walmart's ad platform, Walmart Connect, positions Walmart to expand its advertising business [2]. Walmart's advertising business, including Vizio, grew by 50% during the first quarter of fiscal 2026, with Walmart Connect in the U.S. increasing by 31% [2].

Walmart's move is not without competition. Amazon, for instance, has partnered with Roku to integrate its advertising network with Roku's platform, expanding its reach through the largest authenticated Connected TV (CTV) footprint in the U.S. [2]. Additionally, Target expects its retail media business, Roundel, to double over the next five years, generating $2 billion for the company [2].

By turning Vizio into a private label brand, Walmart aims to fortify and differentiate its growing media empire. This strategic move aligns with Walmart's broader objective to integrate the business and sharpen its edge in the competitive advertising industry [3].

References:
[1] https://progressivegrocer.com/walmart-sell-vizio-tvs-private-label
[2] https://www.thestreet.com/retail/walmart-makes-exclusive-deal-with-major-brand-to-compete-with-rivals
[3] https://www.retailtouchpoints.com/topics/market-news/walmart-to-turn-vizio-into-its-newest-private-label-brand