Walmart and other retailers are canceling billions of dollars in orders

[lepke1979]

Q4 should be interesting.

https://retailwire.com/discussion/walmart-and-other-retailers-are-canceling-billions-of-dollars-in-o...

[collectfest]

interesting read, post attached to article also interesting, Thanks

[chapeau-noir]

I found the comments as interesting as the article.  This one in particular:

Sounds like the factories shot themselves in the foot when they extended order placement lead times. And then retailers piled on and magnified the problem by overbuying … again. And are now further magnifying the problem with cancellations.

The entire food chain is like a giant slinky.

[ckimodog]

@lepke1979 

Thanks for posting.  Interesting article. 

[my-cottage-books-and-antiques]

Lucky for ebay they don't actually have to worry about ordering inventory. 

Of course, they do need sellers to want to list their inventory here, and that might be an even bigger challenge LOL

[sextons-sweet-deals]

I see this as another game play from retailers / manufactures!

You are being told that they are canceling orders now as the holidays are approaching.  This makes everyone want to shop early and possibly pay more than they should. 

I don't see freighters hanging out in the ocean to unload these days!??

Another thought is how Apple just released new crap (where did they get the chips / software?), but there are new vehicles sitting waiting for chips across the U.S. Does not make business since! They want you to buy and later install the chips. REALLY?

example: 

Kokomo lot packed with pickups awaiting missing microchips

Why should we buy an incomplete vehicle let alone these days having to take out a 6 or 7 year loan in order to afford it with all the recalls these days?

[dandfmarinesalvage]

There's a reason those freighters aren't hanging out like they were. Demand has fallen off a cliff! Look at the statements made by shipping company CEOs the last few weeks. Most recently the Fedex CEO said he isn't sure what is going on with China but there's very little being exported now. Badly enough that cargo planes were leaving the mainland with very little aboard and flights have now been drastically reduced. That's because orders from the U.S. and other consumer countries have absolutely plunged. The BDI and other early indicators are all sounding the alarm. Demand is plunging across the board and hard times are coming but even as a few can see the iceberg, the band plays on. While most are simply unaware of just how dismal the leading indicators are.

This is a completely different downturn than most we've seen. We as online sellers have never seen a downturn where inflation has fueled the fire and the fed policy that comes along with trying to tame inflation is going to absolutely destroy the lower and middle class without choice though as the lower and middle class is being crippled by inflation already. This is also a global downturn that will fuel itself on the way down. Smart sellers who are reliant on an ecommerce income should be looking at their business model right now to figure out how to adapt, diversify, cut cost, etc. to weather the storm.

I can also say that as a dealer for a manufacturer. There's been a trend crop up the last couple of months where MANY orders put in over the first 2 quarters are being cancelled once other dealers are notified that their order is ready to ship. When I say many, I mean the regional sales manager for this worldwide manufacturer that does a few billion in yearly revenue has told me their cancellation rate has now rocketed into the 40+ percent range. Small retailers and dealers are being squeezed and demand is drastically waning. 

I'm optimistic about this, as those who remain after the next down turn will have FAR less competition and the opportunity to succeed has never been greater but make no mistake. The global economy has been built on a house of cards and right now the wind is starting to blow!

[skeletonstore]

If Americans ever knew how much all of them were bailed out by the fed they would stop shopping at ALL OF THEM.  

[sextons-sweet-deals]

so true and then some more!

locally, Walmart wants to sue the fire departments for trying to save lives and put out the warehouse fire on the westside of Indianapolis earlier this year.

Walmart blames dozens of Indiana fire departments in handling of warehouse fire, making damage worse

Just can't get enough money Walmart? Probably had huge tax breaks for supplying local jobs. The local taxpayers probably paid for the property, and they now want to find a way to profit more. 

What about business / property insurance that Walmart should have in place?

so those who may not know, there is another Walmart warehouse next door to the one that burned, and Walmart replaced a large majority employees at other warehouses / stores to keep employed. 

[skeletonstore]

Normally one has to procure some street drugs to get this kind of unbelievable nonsense.  

[moondogblues]

"

I found the comments as interesting as the article.  This one in particular:

Sounds like the factories shot themselves in the foot when they extended order placement lead times. And then retailers piled on and magnified the problem by overbuying … again. And are now further magnifying the problem with cancellations.

The entire food chain is like a giant slinky."

What was very interesting to me was that one comment was all about empty shelves at some stores and another couple were about overstock and where to keep it.  Kind of a paradox to me.

[moondogblues]

"and the fed policy that comes along with trying to tame inflation is going to absolutely destroy the lower and middle class without choice though as the lower and middle class is being crippled by inflation already."

It boggles my mind that the Fed tries to 'control' inflation by raising interest rates.  How does making it more expensive to buy things like houses, cars and anything else with credit help the rising cost of the things themselves?  That just tacks more cost onto an already more expensive cost.  Makes NO sense to me.

[Anonymous]

Well, of COURSE they are cancelling billions in orders!  Despite the constant sheep-like denials and other bleatings by everyone in the current regime...wait for it...WE"RE IN A RECESSION!  Add in the record inflation, supply chain insufficiencies and on-going attempts by the socialists to 'fundamentally change America' into just another third world craphole...the laws of supply & demand are pretty simple.

Projections are like elbows...everyone has a couple.  But when you get dozens of the smartest elbows at the same table in agreement, then it'll be a miracle if the current regime only drives the economy into the ditch...and not over a cliff.

[powell-memorabilia]

---

@moondogblues wrote:

"and the fed policy that comes along with trying to tame inflation is going to absolutely destroy the lower and middle class without choice though as the lower and middle class is being crippled by inflation already."

It boggles my mind that the Fed tries to 'control' inflation by raising interest rates.  How does making it more expensive to buy things like houses, cars and anything else with credit help the rising cost of the things themselves?  That just tacks more cost onto an already more expensive cost.  Makes NO sense to me.

---

It does work.  The cost of the car is part of that basket of inflation - not how much someone will pay over the course of a five year car note. And, people will absolutely switch to cheaper cars with the increased borrowing rates.

Take the example of a guy with $500 a month to spend on a car.  Maybe at a crazy low rate he can afford a $28k car.  With borrowing rates sky high, maybe he can only afford a $25k car. Higher rates will definitely lower the amount that is spent on cars - likely cooling the price premiums on cars AND affecting the mix of what is sold.

and think about those that use credit cards and keep a balance.  They will be spending more on interest, leaving less for new purchases.  Those high rates will dampen demand, leading to excess supply, and falling prices.  

[moondogblues]

"and on-going attempts by the socialists to 'fundamentally change America' into just another third world craphole..."

Do you pay for your own police and firefighters, and teachers and schools.  Maybe have your own library?   Your own military? Build your own roads and freeways, have your own hospital?  Or do you pay taxes like everyone else?

If so then you are a socialist.  It's NOT a dirty word.  And your political rants and/or point of view belong elsewhere, not here.