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Walmart and Target Struggle to Solve the 2022 Economic Maze

Все вопросыРубрика: Общий вопросWalmart and Target Struggle to Solve the 2022 Economic Maze
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Ashely Pino спросил 4 недели назад

The current economy is like one of those maze puzzles.
Knowing which path leads to a successful outcome or a dead end is almost impossible.
A knotted supply chain, a threat of recession, continuing inflation, a geo-political fracture between the U.S. and China, a war in Ukraine, continuing Covid worries, and a challenging political climate makes for a puzzle no one can quite figure out.
Target and Walmart are trying to figure their way through, and it’s not going well. So,
they are trying to move risks and costs to their suppliers.
One way to do that is to cease buying direct import from Asia and switch to ordering from their suppliers’ domestic warehouses.
Here is how a Reuters article by Siddharth Cavale and Arriana McLymore, “Target puts the squeeze on suppliers after Inventories pile up,” describes it:
My read is that both retailers want to pass not only the cost of importing from China but the aggravation that currently goes with it. But reading
between
the lines suggests that
the two retailers don’t just want domestic warehousing by their suppliers, they want to continue to pay the direct import price.
How else do you explain this comment by Exploding Kittens CEO Carly McGinnis;
This is not going to end well. Between inflation and pressure from two of America’s retail gorillas,
toy and consumer products companies will eventually pass on the additional costs to American consumers or go out of business
. That’s not good for the economy or any of us who operate within it.

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