Alphabet (GOOGL) slips after hours despite Street-beating Q2 >>> READ MORE

Wal-Mart to Spend $50B More on American Products

The retailer has been criticized for selling cheap foreign goods


Wal-Mart WMTThe nation’s largest retailer says it will buy more U.S.-made products.

Over the next 10 years, Wal-Mart (NYSE:WMT) plans to increase its purchases of domestically produced goods by $50 billion. Wal-Mart has come under criticism for selling low-price products manufactured abroad, particularly from China, Reuters notes.

Walmart CEO in Hot Water Again Over Mexico Bribery Allegations
Walmart CEO in Hot Water Again Over Mexico Bribery Allegations

While Wal-Mart said the additional spending on U.S. goods was meant to help the struggling U.S. economy, critics noted that an extra $5 billion a year hardly amounted to economic stimulus in a $15 trillion economy.

According to Wal-Mart, two-thirds of the products sold in its U.S. stores are produced domestically. In 2012, 55% of the company’s sales were generated by food and beverage products, which are usually produced in the U.S. Clothing and accessories accounted for just 7% of the chain’s sales, but those items are mostly made overseas.

Other retailers indicated that it would be difficult for them to follow Wal-Mart’s lead. Macy’s (NYSE:M) CEO Terry Lundgren told Reuters that buying more American-made products would result in higher prices, which consumers were unwilling to pay.

Earlier this week, Wal-Mart announced that, starting on Memorial Day, it will offer a job to any honorably-discharged veteran who has been out of the service for less than one year.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC