WAL-MART SELLS U.S. PHOTOFINISHING BUSINESS TO FUJI
By Adnews Staff
Japan-based Fuji Photo Film Co. Ltd. has bought the U.S. photofinishing business of Wal-Mart Stores Inc. of Bentonville, Arkansas. The purchase includes six Wal-Mart-operated off-site laboratories as well as a 10-year contract naming Fuji as the only supplier of photographic paper and chemicals for all of Wal-Mart's stores. In addition, Fuji will replace Eastman Kodak as the supplier of paper to all of Wal-Mart's 1,200 in-store minilabs, which develop pictures in an hour. Wal-Mart controls about 15% to 20% of the U.S. photofinishing business, ahead of Kmart Corp. and Eckerd Drug Stores. Kodak controls the photofinishing operations of these two businesses. Until this week's agreement, Kodak controlled about 80% of the U.S. wholesale photofinishing business. Wal-Mart sold the labs to focus on its core retailing business.