What does Walmart know?

They couldn’t get enough last year!

Do they know something that they aren’t telling us? As you will see below, Walmart, Target and other major U.S. retailers are literally canceling billions of dollars in orders ahead of the coming holiday season.

I have never heard of such a thing happening before, and under normal conditions, it wouldn’t make any sense at all. The holiday season is typically the busiest time of the year for retailers, and at this time in 2021, there was actually a great deal of concern that there wouldn’t be enough inventory due to global supply chain problems. But now everything has changed. All of a sudden major retailers are feverishly canceling orders, and this would only make sense if a severe economic downturn was imminent.

https://www.charismanews.com/opinion/90185-why-are-walmart-a…

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Do they know something that they aren’t telling us? As you will see below, Walmart, Target and other major U.S. retailers are literally canceling billions of dollars in orders ahead of the coming holiday season.

I have never heard of such a thing happening before, and under normal conditions, it wouldn’t make any sense at all. The holiday season is typically the busiest time of the year for retailers, and at this time in 2021, there was actually a great deal of concern that there wouldn’t be enough inventory due to global supply chain problems. But now everything has changed. All of a sudden major retailers are feverishly canceling orders, and this would only make sense if a severe economic downturn was imminent.

We’ve talked about this before. WalMart and other retailers thought pandemic/lockdown demand would continue into the future. During the pandemic, things like outdoor furniture, home and outdoor sporting equipment, home furnishings, groceries, etc. were through the roof. Now the pandemic is over (kind of) demand has realigned. Stuff like back to school, tail gating, Halloween, etc. are through the roof.

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Could they be worried about flash-mobs doing their smash-&-run antics after the midterms?
The mob is itching for any excuse to loot.
I’m sure insurance companies are getting tired of paying out and raising rates, also.

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Could they be worried about flash-mobs doing their smash-&-run antics after the midterms?
The mob is itching for any excuse to loot.
I’m sure insurance companies are getting tired of paying out and raising rates, also.

Here’s the latest earnings call. According to Walmart they have too much inventory in some categories so they are buying less of that kind of stuff:

At the end of Q2, Walmart U.S. inventory growth was 26% versus last year, reflecting over 750 basis points of improvement from Q1 levels. Notably, about 40% of the year-over-year increase relates to inflation. General merchandise inventory growth rates are down more than 15 percentage points from Q1, but still with work to do.

We've cleared most summer seasonal inventory, but we are still focused on reducing exposure to other areas such as electronics, home and sporting goods. We've also canceled billions of dollars in orders to help align inventory levels with expected demand.

https://www.fool.com/earnings/call-transcripts/2022/08/16/wa…

Again, we’ve discussed this a few times on this board. Not as sexy as PA-style conspiracy theories, I’ll grant you.

11 Likes

Again, we’ve discussed this a few times on this board. Not as sexy as PA-style conspiracy theories, I’ll grant you.

Yep. The major retailers bought forward because they were afraid of supply chain issues as happened early in the pandemic, and because they thought the level of sales would continue until somebody waved a big flag and said “Pandemic’s over”. (Oops.)

As it happens, they got a lot of their stuff on time (and a lot that wasn’t and missed the season), and then consumers took it upon themselves to stop buying stuff and start spending on services. Restaurants found more diners in the dining room. Nail salons began booking up lots more appointments. Cruise lines filled up. Spas and gyms got full again.

The money is/was still being spent, it’s just going in a different direction than the retailers expected. Now they’re overstuffed and trying to figure out how to sell patio furniture in November.

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Yep. The major retailers bought forward because they were afraid of supply chain issues as happened early in the pandemic, and because they thought the level of sales would continue until somebody waved a big flag and said “Pandemic’s over”. (Oops.)

Well, Biden said exactly that.