Walmart’s Business Flourishes Despite Supply Chain Challenges
Across the United States, many retailers, both large and small, are facing issues with their supply chains due to ongoing disruptions at the country’s shipping ports. Some stores have resorted to displaying their holiday inventory early due to a lack of products to stock their shelves, while smaller retailers fear missing out on holiday sales opportunities.
Despite these challenges, Walmart, the largest retail chain in the US, has shown resilience. In a recent earnings call, Walmart announced a 9.2% increase in sales for stores that have been open for a year or more during the three-month period ending on October 31, surpassing expectations set by Wall Street. Additionally, Walmart has revised its annual sales and profit growth projections by 6%, anticipating a profitable holiday shopping season.
Walmart’s CEO, Doug McMillon, stated, “We have the resources, products, and competitive prices to provide our customers and members with a fantastic holiday season.”
Walmart exceeds Wall Street predictions, demonstrating its resilience against global supply chain disruptions and inflation rise https://t.co/rw80RjbkEi
— Bloomberg (@business) November 16, 2021
By utilizing its vast scale and reach, Walmart has effectively addressed the supply chain challenges. Like several other major retailers, Walmart arranged for private shipping vessels directly from Asia, a costly solution that smaller chains couldn’t afford. However, Walmart’s financial strength enabled them to absorb these expenses. The strategy has proven successful, with Walmart’s overall store inventory increasing by approximately 11% compared to the previous year. With ample supplies available, Walmart is positioned as a convenient holiday shopping destination this year.
