Posted on 09/20/2022 2:43:11 AM PDT by EBH
Walmart, Target, Macy’s and Kohl’s are among retailers that have recently said they are canceling some orders to better balance inventory levels, a replay of a strategy used at the start of the pandemic.
Other steps retailers are using to clear inventories as spending has slowed on some non-discretionary categories are employing markdowns and packing away products for the following year. The elevated inventory levels also reflect intentional over-buying to mitigate shortages and the easing of supply chain constraints.
One risk of canceling orders is straining or damaging relationships with trading partners. After the pandemic arrived, many retailers were called out for not honoring their contracts to pay in full for goods that were in production as well as for requests for postponements, discounts or delays in payment. Several issued statements assuring their commitments, with Levi’s and Gap offering low-cost financing to factories to weather payment delays.
The other risk is not having enough inventory to meet demand. Many retailers and brands indicated they missed sales opportunities during the 2020 holiday season due to overly-lean inventories as demand recovered more quickly than expected.
Second-quarter analyst calls found retailers aware of potential inventory shortfall risks from overly aggressive actions.
Christina Hennington, Target’s EVP and chief growth officer, said steps being taken by the discounter’s buying team include “rigorously reforecasting expectations for the balance of the year and beyond and determining where to reduce future receipts and orders. In some cases, it meant working with vendor partners to reduce our fall receipts in light of our updated expectations. It also meant quickly building compelling promotional plans to drive unit velocity for product we already owned, all with a focus on providing great value and generating excitement for our guests.”
John David Rainey, Walmart’s EVP and CFO, said it had cleared most summer inventory, was reducing exposure in electronics, home and sporting goods, and canceled “billions of dollars in orders” to realign inventories. He said, “Our actions in Q3 will allow us to make significant progress toward rationalizing absolute levels and mix, which will enable our stores to be well positioned ahead of the holiday season.”
Way ahead of you. Never even close to a shortage in Covid in this household. Don’t intend to start with future events.
After the midterms the economy will tank hard with massive layoffs and the sheep will be told the republican wins are to blame.
Walmart should cancel their China made items.
I won’t buy things made by China since I feel
they have killed over 500000 Americans with fentanyl
and Covid and because they have paid off our
politicians they escaped being punished.
The death toll is higher than Korea, Vietnam,Afghanistan
and Iraq combined.
How about a nice big fat tariff? F our trading partners. The four most beautiful words in the world are “Made in the USA”
Setting up the premise that the Biden/Pelosi/Shumer demonrats recession can be blamed on “MAGA Trump” Republicans taking control of the house and Senate in November.
“This dark holiday season is a direct result of MAGA’s attack on democracy....”. Pedo Pete, January 2023.
For some reason Wallyworld has been out of half and half milk for about a month. Every store I’ve gone to.
One risk of canceling orders is straining or damaging relationships with trading partners.
Is this sentence saying that business purchases should be continued for purely political reasons.
If so, eff ‘em (those trading partners, that is).
Apparently these trading partners aren’t wearing their big boy pants.
Are these “trading partners” the Chicoms?
Walmart cancelling orders.... But you go in a Walmart and
a lot of bare shelves in many sections. Same with other outlets
thus I think we have a long ways to go to get back to some new
normal whatever that will be.
yeah but if Wally cancels everything with China they may as well close.
and as for fentanyl.....people aren’t finding fentanyl in a box of Cheerios- how about they stop taking recreational drugs? a subject for another thread/day.
Indeed. I’ve stopped trying. I’ll pay more elsewhere at someplace that has it stocked.
Companies from other countries don't run to their governments when problems arise. They understand the ebb and flow of business and take it in stride.
“fentanyl.....people aren’t finding fentanyl in a box of Cheerios-”
Candy is being laced with fentanyl, so I wonder if there will be any Halloween horror stories this year. Also, meds like Xanax are being contaminated. It’s being put on paper money.
There are instances where people are ingesting the stuff unaware.
The Dems must be so proud.
so candy is being manufactured with fentanyl? The little Halloween candies i have in my pantry are laced with fentanyl?
Or are drug abusers lacing candy with fentanyl and either being careless with it at home or ingesting it themselves?
again, not trying to hijack a thread so for another time, or day.
Me too. My Walmart is already selling Christmas trees and decorations, while workers unpacking pallets of more Chinese crap to buy for the holiday.
Christmas should be fun...thank goodness for gift cards.
No...forget the gift cards. You can just send an email with an Amazon “gift certificate” link. Following the link allows the “present” receiver to deposit the money in THEIR Amazon account. Cool!
Merry Christmas!
I go to Wallyworld generally once a week. Sometimes there are a few empty shelf areas, but thankfully not many. What they are out of one week is usually on the shelf the next week. The prices are generally higher than normal, but some are surprisingly low as well. Not many in that category however. Compared to our regular grocers in this area (we have too few & they are not competitive) Wallyworld isn’t a bad bargain, except too many are inferior products. If I shopped for the same items at the regular grocers, I’m afraid I couldn’t afford it for long.
I was in walmart yesterday buying office supplies and the shelves were surprisingly packed. Some prices were double what I paid a few years ago, though.
I am in the auto industry (used car lot and a recycling facility)
The shortages are already here.
Had to check with 4 suppliers to piece together a brake pad and rotor set for a Ford flex.
Duh.
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