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By Renee Dudley - Sep 25, 2013 4:49 PM ET
Wal-Mart Stores Inc. (WMT) is cutting orders it places with suppliers this quarter and next to address rising inventory the company flagged in last months earnings report.
Last week, an ordering manager at the companys Bentonville, Arkansas, headquarters described the pullback in an e-mail to a supplier, who said others got similar messages. We are looking at reducing inventory for Q3 and Q4, said the Sept. 17 e-mail, which was reviewed by Bloomberg News.
U.S. inventory growth at Wal-Mart outstripped sales gains in the second quarter at a faster rate than at the retailers biggest rivals. Merchandise has been piling up because consumers have been spending less freely than Wal-Mart projected, and the company has forfeited some sales because it doesnt have enough workers in stores to keep shelves adequately stocked.
We are managing our inventory appropriately, David Tovar, a Wal-Mart spokesman, said today in a telephone interview. We feel good about our inventory position.
The order pullback isnt across the board and is happening category by category, he said in a previous interview.
In some cases, were going to be taking less, in some were going to be taking more, Tovar said.
Wal-Mart Cutting Orders as Unsold Merchandise Piles Up - Bloomberg
Wal-Mart Stores Inc. (WMT) is cutting orders it places with suppliers this quarter and next to address rising inventory the company flagged in last months earnings report.
Last week, an ordering manager at the companys Bentonville, Arkansas, headquarters described the pullback in an e-mail to a supplier, who said others got similar messages. We are looking at reducing inventory for Q3 and Q4, said the Sept. 17 e-mail, which was reviewed by Bloomberg News.
U.S. inventory growth at Wal-Mart outstripped sales gains in the second quarter at a faster rate than at the retailers biggest rivals. Merchandise has been piling up because consumers have been spending less freely than Wal-Mart projected, and the company has forfeited some sales because it doesnt have enough workers in stores to keep shelves adequately stocked.
We are managing our inventory appropriately, David Tovar, a Wal-Mart spokesman, said today in a telephone interview. We feel good about our inventory position.
The order pullback isnt across the board and is happening category by category, he said in a previous interview.
In some cases, were going to be taking less, in some were going to be taking more, Tovar said.
Wal-Mart Cutting Orders as Unsold Merchandise Piles Up - Bloomberg
