Unable to withstand the decline in performance! Walmart slashes prices on such products

In order to cope with the inventory crisis in the US market, retail giant Walmart recently announced that the prices of clothing products on its online platform will be significantly reduced.

Walmart CEO Doug McMillon said in a recent press conference that continued inflation has led to a sharp increase in food and fuel prices, and Americans' consumption behavior has changed as a result. In order to buy necessities such as food and fuel, American consumers have to cut spending on other products, and the clothing category has been affected.

The current inventory of clothing products far exceeds its usual sales volume, and Walmart has been forced to significantly reduce the prices of its clothing products.

At the beginning of the epidemic, American consumers stayed at home for a long time, and the sales of casual wear, home office supplies and fitness equipment were very high. In order to meet consumer demand, various online platforms prepared a large amount of inventory.

However, as epidemic control measures are relaxed, more and more consumers are returning to offline shopping, resulting in excess inventory for online retailers.

Walmart hopes to reduce inventory through price cuts, especially in the apparel category. Walmart recently launched the Walmart Restored program, which is understood to be a new program designed to help customers discover refurbished products at low prices.

In addition to discount promotions, Walmart recently announced that it will lay off employees, which has led people to wonder whether the retail giant's revenue performance has been affected.

Not only Walmart, Target also recently announced that in order to clear inventory, it will offer price cuts on products in multiple categories on the platform, including clothing and electronic products.

Neil Saunders, managing director of GlobalData , a data analysis and consulting group , said that the sales of popular products such as clothing, household goods, and furniture in the early stage of the epidemic have been affected. There is excess inventory in these three areas, and there will be very strong discounts and promotions. In particular, clothing products are particularly easy to discount because they are seasonal.

Inflation has caused American consumers to face tremendous living pressure. More and more consumers are starting to choose affordable goods, and retailers have to offer discounts and promotions in order to clear inventory.

It’s important to note that long-term inventory overhang has also led to the Inland Empire, the largest warehouse district in the United States, being overcrowded.

In addition to excess inventory, major retailers are also facing pressure from declining profits.

Walmart recently announced it would cut its quarterly and full-year profit guidance, and Target cut its second-quarter earnings expectations in June.

In addition, US consumer electronics retailer Best Buy announced last week that it would lower its fiscal year performance forecast.

How to enhance the company's sustainable profitability will be a difficult problem that major retailers in the United States will always face.

Walmart

Price reduction