Bloomberg Writes: Wal-Mart Cutting Orders as Unsold Merchandise Piles Up

 

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 month’s earnings report.

Last week, an ordering manager at the company’s 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 retailer’s 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 doesn’t have enough workers in stores to keep shelves adequately stocked.

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I really, really, really hate Christmas.  Nothing turns me off more than seeing a beautiful holiday turned into Consumer Olympics where the sports of choice are….

• Trampling your fellow human beings to death at Walmart a day after Thanksgiving because of $149 flat screen TVs.
• Trying to please everyone you know by buying them worthless and meaningless crap.
• Crazy expectations that others place on you and so forth. 

In short, don’t expect any gifts from me. Not even a Christmas card. Yes, I am a Grinch, but I am a nice Grinch with some very valuable information that will save you a lot of money.

As the article above indicates Walmart has an inventory problem.  However, I guarantee you that it’s not only Walmart. It is everyone.  Due to structural and economic issues that I talk about on this blog, retailers should expect their holiday shopping season to be miserable at best.  And here is why I am about to save you a lot of money.

Wait for as long as you can this Holiday Season before buying Christmas gifts. The longer you wait the deeper the discounts will be. I have a feeling that most retailers will be close to giving stuff away by the time Christmas comes around this year. As such, I just saved you a lot of money and that is the only gift you should anticipate from me this year.  Well that and guiding you through the stock market ups and downs.

 

P.S. I sure there are at least a few messed up people like me out there. If you hate Christmas as much as I do, please send me a note so we can celebrate Festivus together on December the 23rd. Cheers!!!

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