Walmart Adds New Supplier Fees

Walmart is adding two new fees.

Walmart will charge a pick-up fee to those who choose to have Walmart pick up their products rather than ship the good themselves to Walmart’s distribution centers. Walmart will base he payment on the order’s financial size.

Walmart will begin charging a fuel surcharge that will change daily based on fuel prices.

Walmart is reacting under pressure from the investment community, which has lost faith in the retailer’s ability to withstand price increases and remain profitable.

Here is how Bloomberg describes the situation:

Walmart is seeking to force suppliers to share the pain from rising freight costs after the retail giant cut its profit forecast in May and suffered the biggest one-day decline in its stock price since 1987. The shares have slipped further since then as investors question the company’s ability to withstand higher expenses for merchandise, transportation and labor.

Walmart Levies Pickup, Fuel Charges on Suppliers as Costs Soar,” Bloomberg News, July 5, 2022

I think it is likely that other retailers will follow suit as a way to boost profits. Suppliers will look to their input suppliers for relief. It will likely cause a reaction as price increases surge back up the supply chain. It’s not pretty.

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