A supplier of high-end luxury hotels has become Walmart’s go-to for supply chain logistics, with the retailer’s sales growing faster than the industry.
The company’s chief executive, Doug McMillon, said Monday the company is now selling more than $300 million worth of hotels per year, compared with just $100 million in 2015.
RJB supplies hotels, resorts and other luxury-priced lodging to retailers such as Home Depot, Target, JCPenney and other large retailers.
The company employs more than 1,300 people.
While Walmart has been able to ramp up its hotel supply operation more rapidly than the hotel industry, it has struggled to keep pace with demand for its brand-name goods.
Walmart’s total sales in the U.S. rose 9.6 percent in the third quarter, according to the Commerce Department.
Walmart also reported the first decline in quarterly profits since 2010.
With more shoppers looking for convenience and lower prices, Walmart is also relying more on suppliers, rather than traditional distributors, such as hotels.
“We have to continue to work hard to increase our capacity to supply our stores and the retail stores that are part of our business,” McMillon said.
Walmart already sells its products to over 60,000 retailers through its online marketplace.
The retailer also has a deal with the hotel giant to allow hotels to set their own rates for hotel reservations.
McMillon said Walmart will start selling some of its products directly to hotels as soon as the company can.
He said Walmart would also be expanding its online shopping service in the coming weeks.
In a statement, Walmart said it was “excited about our ability to expand our direct-to-consumer (DTC) offering in 2018 and beyond.”
The retailer said it is also expanding its business with Costco Wholesale, a major distributor of its goods.
Consumers in some states are looking for cheaper hotel accommodations, particularly during the summer months.
The Consumer Financial Protection Bureau last week proposed a rule that would require hotels to post rates that are more than the average retail rate, which can range from $20 to $50 a night.
Walmart and Costco declined to comment.
Walmart is expanding its e-commerce business by launching its own online shopping platform, as well as partnering with Amazon.
But McMillon acknowledged that Walmart will have to invest in its hotel distribution system in order to keep up with demand, and said he expects Walmart will not have room to expand its operations without a big boost in the hotel supply chain.