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Wal-Mart Cutting Orders as
Unsold Merchandise Piles Up

Bloomberg News, by Renee Dudley

Original Article

Posted By:NorthernDog, 9/25/2013 8:23:55 PM

Wal-Mart Stores Inc. (WMT) is cutting orders it places with suppliers this quarter and next to address rising inventory the company flagged in last month’s earnings report. Last week, an ordering manager at the company’s Bentonville, Arkansas, headquarters described the pullback in an e-mail to a supplier, who said others got similar messages. “We are looking at reducing inventory for Q3 and Q4,” said the Sept. 17 e-mail, which was reviewed by Bloomberg News. U.S. inventory growth at Wal-Mart outstripped sales gains in the second quarter at a faster rate than at the retailer’s biggest rivals. Merchandise has been piling

Comments:
Not a good sign. The 4th quarter is usually the busiest (by far) of the year.

      


Post Reply  

Reply 1 - Posted by: BaseballFan, 9/25/2013 8:28:54 PM     (No. 9536984)

And to think I actually saw some Obamedia writing about a ´recovery´ just yesterday.

Not good, indeed.

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Reply 2 - Posted by: sternben, 9/25/2013 8:32:27 PM     (No. 9536988)

bad link

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Reply 3 - Posted by: NorthernDog, 9/25/2013 8:34:17 PM     (No. 9536990)

Correct Link:

http://www.bloomberg.com/news/2013-09-25/wal-mart-cutting-orders-as-unsold-merchandise-piles-up.html

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Reply 4 - Posted by: Bubbasuncle, 9/25/2013 8:37:48 PM     (No. 9536992)

Agree with OP, with Christmas shopping coming it´s not a good sign.

Try this link,
http://www.bloomberg.com/news/2013-09-25/wal-mart-cutting-orders-as-unsold-merchandise-piles-up.html


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Reply 5 - Posted by: Chippewa, 9/25/2013 8:53:53 PM     (No. 9537012)

No big surprise when most of your customers are working 29 hours per week because of Obamacare.

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Reply 6 - Posted by: flowerladytoo, 9/25/2013 9:08:01 PM     (No. 9537039)

It´s not surprising to me. Our local Walmarts are terribly understaffed, the shelves are not kept stocked, they employees are surly (when you can find one), and unless the self checkout is open it takes forever to check out. I used to be one of their biggest cheerleaders, but no more. I much prefer Target, or a local store, instead, even if it´s a few cents more for the items I need. At least they have polite employees, and keep their shelves stocked. Sam Walton has to be spinning in his grave over what´s been done to his stores.

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Reply 7 - Posted by: uno, 9/25/2013 9:24:26 PM     (No. 9537061)

A sure sign of an economy coming back “stronger than before” if I ever saw one...

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Reply 8 - Posted by: tomanderson61, 9/25/2013 9:30:34 PM     (No. 9537070)

#6, I complained about exactly what you said, a few YEARS ago, right here, and was widely put down for it, and as one gent said back then, I was "stupid to be paying more elsewhere".

My response then and now is that I am very thankful I don´t have to shop there, lit like a Taiwanese flea market, lousy help, lousy, badly made product.

So I can save a few pennies on Tide.

You can have the whole rotten mess.

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Reply 9 - Posted by: neanderthal, 9/25/2013 9:35:05 PM     (No. 9537078)

Gee! Isn´t it great that Obama got us out of that terrible recession of the Bush years?

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Reply 10 - Posted by: Bubbasuncle, 9/25/2013 9:37:33 PM     (No. 9537082)

No Salvation Army = I don´t shop there.
And the online deal doesn´t make up for it.
Call me stubborn.

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Reply 11 - Posted by: GringoinQuito, 9/25/2013 9:44:36 PM     (No. 9537091)

When they can´t afford the Walmart prices, you got to know that there is trouble ahead.

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Reply 12 - Posted by: PI65, 9/25/2013 9:49:30 PM     (No. 9537096)

I stopped going to our Walmart. It´s a dump. Target much better.

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Reply 13 - Posted by: SouthSanAntonio, 9/25/2013 10:28:40 PM     (No. 9537130)

I like Wally World. Always have. The ones here are pretty good, and the prices beat the heck out of anyone else. With Øvomitnomics trying so hard to wipe us all out, it´s one of the last bastions where you can get decent merchandise at a decent price.

However, I sure wish they would highly increase their ammunition orders. That case is pretty much always empty...

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Reply 14 - Posted by: Pinchem, 9/25/2013 10:55:08 PM     (No. 9537174)

#6, 8 and 12. How sad that you live in a pathetic neighborhood with pathetic people who work in your Walmarts. Maybe you should move to where good and decent people live. Just because one Walmart is bad doesn´t mean they all are.

I don´t think you would appreciate someone saying your town is the most pathetic town in America simply because you live there. That is essentially what you are saying about your Walmart.

The answer is simple. You have a pathetic Manager that is allowing the store be be dirty, hiring lousy employees, etc. If you could do something beside whining and crying you might get the store improved.

It´s people like you that get people like Obama elected because you don´t care to do anything about it.


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Reply 15 - Posted by: BaseballFan, 9/25/2013 11:13:30 PM     (No. 9537193)

Seems that Bloomberg´s reporting was erroneous... WalMart responded by saying the claim that Wal-Mart is cutting orders because inventories were piling up is "completely false."

Their stock rebounded by 3/4 of a percentage point after they corrected Bloomberg.
Perhaps not surprisingly, even shares at CostCo and Target fell on Bloomberg´s poor / incorrect reporting.

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Reply 16 - Posted by: ColonialAmerican1623, 9/25/2013 11:35:06 PM     (No. 9537216)

Wally World can´t even get the merchandise from the stock room to the floor. A dept. manager scanned something, ordered it, said it would be there in four days. A week later it was still on a palette in the stock room.

During the summer I ordered something from their online site because the closest store wouldn´t reorder from the floor. Not the same merchandise online and they didn´t want to cancel the order or take it back after it was delivered to the store. Went to another store and bought it off the shelf.

You can keep WalMart.

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Reply 17 - Posted by: PI65, 9/26/2013 12:04:43 AM     (No. 9537246)

#14 Your comment was probably in the top ten of the most ridiculous responses that I´ve seen on this site in my fifteen years of posting. What in the world could you have been thinking?

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Reply 18 - Posted by: tomanderson61, 9/26/2013 12:37:36 AM     (No. 9537269)

#14, I get it, you are JUST the kind of people I described in my post--that is, one can´t say anything bad about Walmart; It used to be that I must be some arrogant rich jerk that wants to deny poor people access to cheap goods; now it´s MY fault that Walmarts are dingy stores that sell lousy junk.

I see, it´s my fault. I sadly live in a bad neighborhood!

And because I complain about bad service and product, it´s somehow my fault? And Obama gets in because "people like me" don´t take it upon themselves to fix Walmart? I didn´t know I was in the business of fixing bad businesses for free.

And as a leader of a local Tea Party, a guy who spent countless hours educating people on ballot measures and initiatives, and spending quality time in-person with my local elected representatives, I did more than my part to keep Obama from being elected.

What did you do?

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Reply 19 - Posted by: artsy, 9/26/2013 12:45:08 AM     (No. 9537275)

Love my Walmart! And, yes, the shelves are not stocked adequately, but there are always alternatives in the store. And Target is many miles away. If the prices in my Walmart are held down by keeping the shelves lean, I´m OK with that. It´s a business that needs to be profitable. I´ve read that they are trying to buy from US manufacturers. Looking forward to that!

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Reply 20 - Posted by: ROLFnader, 9/26/2013 7:28:34 AM     (No. 9537417)

Oh, there is an easy fix for this. Let´s just have Bernanke buy a bunch of stuff from Walmart every month.

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Reply 21 - Posted by: MattMusson, 9/26/2013 8:08:27 AM     (No. 9537456)

Just wait until the Middle Class has to start scraping together $ for ObamaCare premiums.

Retail sales will plummet.

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