The Supply Side: Walmart says it won’t lose grocery market share to dollar stores in recessionary period

[Emily]

'recessionary period' = recession

https://talkbusiness.net/2022/07/th...hare-to-dollar-stores-in-recessionary-period/
The Supply Side: Walmart says it won’t lose grocery market share to dollar stores in recessionary period

Retail The Supply Side

by Kim Souza (ksouza@talkbusiness.net) July 3, 2022 10:41 am

...
When specifically asked how Walmart expects to keep from losing share to dollar stores, McMillon said the company will continue to focus on a good, better and best selection in grocery and consumables so consumers can pick and choose where they want to save. He reiterated the opening price points will be competitive with dollar stores and deep discounters like Aldi, but Walmart will also carry national brands at a valued price level relative to full-service grocery options. He said in a time when gas prices are at a record high, Walmart is also banking on consumers making fewer trips and wanting to get all their groceries and purchases with one stop when possible.

Rising prices are taking a toll on consumer sentiment which is also concerning for retailers. Josh Brown, CEO of Ritholtz Wealth Management, said the June consumer sentiment reading of 50.2 is proof consumers feel like they are in a recession.

“When prices and cost of living are rising concisely more than your income consumers feel it, and they will change behaviors. Of course, sales are going to rise because the price of everything has gone up, but consumers have to make choices about where and how they will spend,” Brown said.

Persistent and broad price pressure is certainly pinching consumers, further squeezing category sales that are more discretionary as it takes more to fill the gas tank and put food on the table, noted Wells Fargo economists. The pessimism was widespread in the June consumer confidence report as more than half of households’ opinions of their finances have worsened. Savings rates have slowed, and credit balances have also increased as more of the household funds are going toward food and fuel, according to Wells Fargo economists....

 

[sharon sanders]

bump this

 

[Emily]

https://talkbusiness.net/2022/07/so...with-new-charges-related-to-freight-handling/
Some Walmart suppliers hit with new charges related to freight handling
BusinessRetail

by Kim Souza ([email protected]) July 6, 2022 5:07 pm
The rising cost of fuel and transportation has pushed Walmart to begin charging suppliers a pickup fee for freight the retail giant handles on their behalf. The suppliers are known as “Collect” versus the “Prepaid” option they are given.

The memo was sent to Collect suppliers last week. Talk Business & Politics received a copy of a Walmart memo which stated effective Aug. 1 all Collect suppliers will share transportation cost accountability through a Collect Pickup charge and a fuel surcharge. The Collect Pickup charge is a monthly department-specific deduction calculated as a percent of the Cost of Goods received across Walmart U.S.

“The customer is at the center of everything we do at Walmart, and we continue to look for ways to bring them everyday low prices and deepen our relationship. It’s also critical we remain diligent in reducing expenses where we can in order to deliver for our customers,” said Chris Nicholas, chief operating officer at Walmart U.S.

He said significant transportation cost increases over the past few years reached a tipping point and it’s time suppliers share the cost burden. Collect suppliers allow Walmart to pick up and ship their goods to Walmart distribution centers. The transportation cost is factored into the order total, and Walmart typically collects transportation costs from the supplier. Suppliers who handle their own shipments to Walmart distribution centers negotiate their own rates and pay them independently of Walmart...