Wal-Mart Cuts Orders 10 Percent Through Year’s End
Wal-Mart Cuts Orders 10 Percent Through Year’s End (Bloomberg)
Consumers have been spending less freely at Wal-mart this quarter than predicted and the global retail giant sees more of the same through the holiday season, so it’s cutting inventory orders by 10 percent through the remainder of the year. Sales through the holiday period are only projected to grow by 2.4 percent — the smallest percentage since 2009, according to ShopperTrak, the Chicago-based company. One supplier, who wished to remain anonymous, said that he couldn’t remember Wal-mart ever ordering reductions two quarters in advance. Wal-mart shares fell 1.5 percent on the news, its biggest decline since Aug. 4. How this pullback affects investors in the rest of the retail segment remains to be seen. Retail stock investors beware.