Despite their own challenges with rising inflation, material, and labor costs, senior Walmart Inc. executives said on Friday that some suppliers have been reacting to the largest U.S. retailer’s attempts to slash pricing.
Investors have questioned Walmart’s capacity to persuade suppliers for price cuts while they, too, are trying to safeguard profits in the face of four-decade-high inflation.
Some suppliers are working with Walmart to ensure prices don’t go up, CEO Furner says.
Other suppliers are finding ways to reduce costs “even in times when costs are going up,” he says.
Walmart is dealing with an inventory surge caused in part by a shift in purchasing patterns toward food and other basics.
Inventories rose 32% in the first quarter, a fifth of which came from merchandise arriving earlier than expected.
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