Wal-Mart cutting orders as goods pile up
The company reportedly told suppliers that it will reduce inventory for the rest of the year. Analysts blame missed sales.
The company is suffering from two related issues. Shoppers just aren't spending as freely as executives predicted. At the same time, Wal-Mart isn't hiring enough workers to keep shelves stocked.
The result is that the company is missing sales and its inventory levels are way too high. Bloomberg reporters saw a Sept. 17 email message to at least one Wal-Mart supplier saying that the company is "looking at reducing inventory for Q3 and Q4." But a company spokesman told the news service that the order pullback isn't "across the board" and is happening "category by category."
When the largest retailer in the country has those problems, it doesn't bode well for the sector as a whole and the upcoming holiday season.
U.S. inventory grew at 6.9% in the second quarter, Bloomberg reports, while U.S. sales only grew at about 2%. That's a fairly stark slowdown from a year earlier, when inventory grew by 3.6% and sales grew by 3.8%.
The back rooms of Wal-Mart stores are full, which is one reason some stores already have Christmas decorations out on the sales floor, Bloomberg reports. There's nowhere else to put light-up penguins and kitschy Christmas items.
"The aisles in the back room are so backed up with stuff," a Wal-Mart stocker in Colorado told Bloomberg. "We brought three pallets of Christmas trees out to the garden center. We usually do that in mid-October. We’re filling it up pretty quick for only being mid-September."
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Not stocking shelves seems to be step one in addressing the problem here? Retail 101?
Otherwise no surprise as the rest of the country is still struggling to get by, so people are watching what they buy. When the bulk of the money is in the fewest hands possible it creates a downward spiral. A rich person can only buy so much. Not saying take and redistribute, saying Wall St needs to get a clue and realize that hording the wealth will not get them anywhere in the long run. Businesses need to be reinvested in and companies need to hire and/or increase pay for employees, many who have been shouldering increased workloads as of late with little to no extra compensation. There is a balance to be had and in the short term cutting labor and salaries boost profits but long term if no one has money to buy anything and companies don't go back to paying decent wages everything will fall apart. Hence why middle class is so important.
I think its time
Nothing more to be said.
I don't know to many people can even afford to shop even at Wallmart working only
29 1/2 hours a week
Exactly when every retail business should be hiring for the holidays they are laying off or not hiring as many as they have in previous years.
How is the Obama recovery working for you?
We shop Wal-Mart once a week and usually have a good list of the things they were out of stock on that we have to pick up at other retailers. From my observation it is a growing issue as our list seems bigger every week. A simple thing this last weekend really blew me away. Out of butter. Simple regular Sweet Cream salted butter 9:30 Sunday AM.
Oh no!! And I thought we were saved!! Golly if Walmart sales are off is it safe, even prudent to suggest it is not the 1% who are cutting back on shopping and consuming? Could it be that....I dunno... the 99% are suffering? Gee...could it be that there is no recovery at all; that it is all nothing but an Oboob lie? That the market shills have been lying to us, too? Jeepers and I thought we were saved. And darn I was all set to piss money away on Wall Street and start consuming again. Dang.
And here comes Obamacare that will cost the consumer $250 to $350 a month. What do you think the economy do, down, down, down.
I'm looking for a new larger smart TV and I'm hoping that I can get it for less since inventory is stocking up. The clerks at my local Walmart have stated that holiday sales will be better this year.
Hooray for me for finally getting a break and my heart goes out to everyone who may be adversely effected by this problem.
Merry Christmas to everyone and may God bless us all.
Considering "P.O. Carl's" comment I must say we are in big trouble. Walmart is about the cheapest place to shop, regardless of quality. If you need it now on a budget go to Walmart. If they have too much inventory what is coming next? I hope we can fix this mess.
USA not O-bam
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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The solid report comes a month after the retailer closed all of its Canadian operations.
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