by Sloan T. Wilson, The Chicago Times
June 5, 2022
BENTONVILLE, AR — Top Walmart executives disclosed to investors on Friday some suppliers have been responding to Walmart’s efforts to lower prices for customers in the face of high inflation, material, and labor costs.
“There are certain suppliers that have taken one line, others that are working with us to find ways to reduce costs even in times when costs are going up. A number of suppliers are working with us to ensure prices do not rise.” CEO of Walmart US, John Furner said in response to anxious investors.
According to Walmart CEO Doug McMillon, the company is ordering further out or requesting for changes in pack sizes or case sizes, also known as shrinkflation, to help suppliers control costs.
McMillon also said he was very concerned about the soaring inflation rate and was unclear if he believes it will remain at this level, continue to rise, or ever return to the 2 percent range.
McMillon said Walmart will focus on limiting price hikes on basic goods such as canned tuna and macaroni and cheese. In addition, Walmart plans to reduce prices on apparel and home goods in order to compete with other chain stores and the mighty Amazon.com.