The costume lovers who flooded walmart this month in preparation for Halloween had little idea how big the stock count was this year. Among the Trump Administration’s flexible pricing, the planning of this period, which starts months in advance, now includes how the money can change before the orders arrive, by predicting how many units will sell, according to CEO Doug McMillon. All that comes on top of analyzing how inflation can affect consumer performance.
“Families put their children and pets first before they put their parents first, and the mother often kills herself,” McMillon said while speaking on the future of Harvard’s business update today (Nov. 3). “This is a family business.”
Walmart Fact reinforced those dynamics in its Halloween plan this year. “We were hoping that there would be trick or treating and children’s clothing would sell, but we may not be selling a lot of adult clothing,” he said, adding that the company “has done a great job of getting tax rates.”
As America’s largest retailer, Walmart makes more than two-thirds of its products at risk. But it depends on imports from China, Mexico, Canada and Vietnam, leaving it exposed to tariff rates. Earlier this year, Bentonville, a Mhubi-based company warned that the duties could force it to raise prices.
The price hikes are just one of several difficult decisions Walmart faces under tax pressure. Other decisions include flexibility of change, changing countries of origin and innovation management. Colon management can be a very serious job, according to McMillon. “The more you get, the more you end up with all these extra costs,” he said. “If you have too little inventory, you keep losing sales opportunities.”
This is not the first time that Walmart has had to make quick decisions in response to an unprecedented event. The start of the Covil-19 pandemic, for example, hastened the company’s decisions as managers acted to protect workers and customers while maintaining chains. Those efforts paid off: Walmart’s profits took a nosedive in 2020 as shoppers shopped for essentials, used check-in incentives, and embraced online grocery shopping and curbside checkout options.
McMillion Credits Waldemic’s Phendemic-Era success to the dominance of its retail partners, supply chains and rehouses. “What I see is how good their approach is and how quickly they make decisions,” he said. With the same adaptability, he added, he also proves that Walmart is definitely moving.
“The way they’ve handled this whole situation, the changing dynamic, again, it’s been impressive – just like it was during the pandemic,” he said.
