Walmart is slashing prices to get rid of excess inventory

Retail giant Walmart told investors Monday it is looking to slash prices on items like apparel as it faces an overstock of some goods.

Retail giant Walmart told investors Monday it is looking to slash prices on items like apparel as it faces an overstock of some goods.

In a statement posted on its website, Walmart mentioned that the higher prices consumers are paying for food and gasoline are cutting into their ability to buy other items, like clothing. The upshot: There are now more of these goods than the company can sell — so it is discounting the prices on them.

Consumers feeling pressure from inflation as Walmart cuts prices to reduce inventoryJuly 26, 202201:28“The increasing levels of food and fuel inflation are affecting how customers spend,” CEO Doug McMillon said in a news release Monday. “Apparel in Walmart U.S. is requiring more markdown dollars.”

The goods build-up is the result of companies’ trying to keep pace with pandemic demand while coping with supply chain bottlenecks. While they were stuck at home, consumers looked to purchase items that met their lockdown needs, like casual clothes, goods for home offices and exercise equipment.

But as the economy has reopened and as supply chains have recovered somewhat, retailers have found themselves left with excess merchandise.

https://www.nbcnews.com/business/consumer/walmart-slashing-prices-get-rid-excess-inventory-rcna40033

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