Walmart: Order-Cutting Report ‘Completely False’

by William White | September 26, 2013 10:31 am

Wal-Mart WMT[1]Walmart (WMT[2]) has denied a report[3] that is is cutting back orders.

The report, which came from Bloomberg[4], claims that the retail giant is cutting back orders to trim its inventory for the next two quarters. Walmart claims that the report is “completely false” and that it “lacks the fundamental understanding of how the retail world works.” Walmart instead claims that it is increasing its orders in some areas but cutting them back in other areas, reports MarketWatch.

According to the report from Bloomberg, Walmart had e-mailed suppliers to let them know that it would be cutting back orders for its third and fourth quarters. The cause for cut back is due to inventory growth being above sales, leaving some Walmart locations with packed backrooms and Christmas decorations already on the sales floor.

During the holiday season, Walmart normally has large amounts of merchandise coming into its stores in preparation for holiday spending. Some Walmart stores don’t move as much merchandise as expected and end up with extra supplies. Sometimes the extra merchandise can get backed up to the point that Walmart has to store it in large containers located behind its stores.

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