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"Walmart Reports Major Shortages As
Fears Of Hard Times Rising"
by Epic Economist
"Walmart’s supply chain is far more chaotic than most people can imagine. Not even the world’s largest retailer is immune to the shortages and disruptions that have been plaguing U.S. businesses in recent years. But given its market dominance and its vast network of suppliers, the fact that empty shelves can still be seen across many of its stores is quite alarming, especially at a time when pretty much everyone in the industry is saying that food supplies are going to get increasingly tighter in the months ahead. Even though its executives say that the company is actually overloaded with too much stuff, shoppers tell a different story. Many customers have recently reported on social media what they’re seeing every time they go grocery shopping at Walmart: plenty of stock outages, bare aisles, and scattered merchandise all around the superstore. The company’s latest woes might be a hint of what the entire sector will be facing soon, and if that’s really the case, we all should start worrying.
With the holidays approaching, Walmart continues to be a one-stop-shop for many people, suiting customers’ needs for clothing, appliances, entertainment devices, and groceries. However, in many recent Reddit threads, shoppers have been voicing concerns over growing food shortages in their Walmart stores, especially for frozen goods, fresh produce, meats, and more recently, several people reported they can’t find chicken anymore at the store. Countless commenters noted that their local Walmarts had either run out of chicken or were about to.
Perhaps due to the scale of its sales volume, Walmart is being the first major retailer to experience the impact of the bird flu pandemic on its food supply chain. One commenter asked, “are people hoarding or is there a production shortage?”
In an e-mail sent to Thrillist, the company confirmed that there is a chicken shortage in their U.S. stores, but they noted that Walmart is not the only one facing it. A representative for the retailer wrote: “This is not just an issue isolated to Walmart, it is affecting every chain—it’s an industry issue,” he said,
The imbalances in Walmart’s supply chain will take several quarters to be sorted out, says President Doug McMillon. In September, he said that supply chain problems and inventory shortages are as stark as he can remember in his 30 years in retail. Moreover, McMillon noted that 2022 supply chain costs were more than $400 million higher than anticipated. The company also took a $1 billion hit on its operating income, and now executives are scrambling to stabilize the business.
The deeper we look, the more Walmart’s issues rise to the surface. And if the retail giant is in trouble, that means everyone else is also experiencing volatility in the supply chain. These trends will continue to accelerate in the near future. And many other retailers will be facing similar challenges or worse. And as consumers deal with the impact of higher prices, retailer continue to see their sales dropping, and those that are on edge may fall off of it way before people notice."
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