Walmart continues discussions to sponsor Gordon (cont'd)

Walmart was not present, but sources said the consumer packaged goods marketing executives met to discuss ways to take national programs to Walmart, with the belief that the retail giant is close to finalizing sponsorship and merchandising agreements to enter NASCAR.

"We've never been able to put together a national program with Walmart," said one source familiar with the talks. "A multivendor campaign, which would be exclusive to NASCAR partners, would put more weight behind it."

The meeting, which took place just outside of Walmart's headquarters in Bentonville, Ark., was described as an all-day brainstorming session to form plans for a 2011 promotion that would be exclusive to NASCAR official partners.

For companies such as P&G, Unilever and Kraft with similar products, they would stick with only the brands that have NASCAR official designations for the promotion.

"The opportunities with this are huge," the source said. "In the past, you could get regional activation with a Walmart close to the track, but they liked to control their national promotions. They typically develop their own programs and then bring in the manufacturers that they choose. But we're hearing that it could be changing."

The store's sponsorship of Gordon would be the most visible bet that Walmart believes an association with NASCAR would help its business.

Sources say Walmart has been seeking ways to reconnect with its core U.S. customers, who compare favorably with the avid fans in NASCAR.

Walmart has experienced gains internationally with strong sales growth in Mexico, Brazil and China, but domestic sales continue to lag. Stores in the U.S. that have been open at least a year have seen sales drop for five straight quarters as core customers continue to be pressed by high unemployment and tight credit.

During its second-quarter report, Walmart said its strategy to roll back prices did not work as well as hoped and it is exploring other options to spur sales.

A four-time Cup champion, Gordon is one of the sport's most popular drivers and a future Hall of Famer.

Gordon's Cup career began with the final race of the 1992 season, and DuPont has been his only primary sponsor. But the most recent deal between DuPont and Hendrick Motorsports ends this year.

While DuPont might be back on the No. 24, it is expected to be in a reduced role. Pepsi and National Guard also have associate sponsorships on Gordon's car this year. Gordon, 39, has said that he plans to drive for four or five more years and that he's over the back injury that at one time was considered a threat to his career.

If Walmart completes an agreement for the No. 24 Chevrolet, it remains to be seen whether the retailer will keep its marks on the car or sell off races to vendors.

Walmart also has been in discussions with NASCAR's licensing trust to be the sport's exclusive retailer in the mass merchandise space. If NASCAR granted Wal-Mart a direct license, it would allow the store to select its merchandise partners and set prices. Those talks have been going on since the spring.