As per reports, Walmart Stores, Inc. (WMT) to start charging some of its suppliers new fees to transport goods to its warehouses and stores in response to rising fuel and transportation costs from next month. The company will charge a “collect pickup charge” calculated as a percentage of the cost of goods received and a fuel surcharge based on the cost of fuel to transport the goods.
The move from the largest retailer comes more than a month after it cut its full-year profit outlook due to rising costs of labor and fuel. Fuel costs, in particular, ran over $160 million higher than it had anticipated.
In June, Walmart’s U.S. CEO John Furner informed the company would need to pass on the costs of higher fuel or shipping to “to fairly price and protect the margins where appropriate”. He further added that some suppliers were responding positively to the retailer’s efforts.
Walmart Stores, Inc. (WMT) is a worldwide retailer that operates in various formats. The three segments of the company include Walmart U.S., Walmart International, and Sam’s Club. The company is comprised of discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, apparel stores, drug stores, convenience stores, membership-only warehouse clubs; and retail Websites. To learn more about Walmart (WMT) and to continue to track its progress please visit the Vista Partners Walmart Coverage Page.
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