Walmart sees gains in supply of goods

McMillon, Biden converse virtually

Following Gov. Mike Parson's stay-at-home order, Walmart has begun limiting how many shoppers may enter the store at a time. A queueing area out front is taped out at 6-foot intervals, to remind people to remain the recommended distance from each other while waiting for their turn inside.
Following Gov. Mike Parson's stay-at-home order, Walmart has begun limiting how many shoppers may enter the store at a time. A queueing area out front is taped out at 6-foot intervals, to remind people to remain the recommended distance from each other while waiting for their turn inside.


Walmart President and CEO Doug McMillon projected confidence in the company's inventory levels and reported that supply-chain delays are improving during a meeting with President Joe Biden this week.

Speaking virtually at a roundtable with business leaders, McMillon told the president that Walmart's inventory level is up more than 10% and transit and port delays are getting better.

"We'll keep working to make sure that we're in a good in-stock position as we go all the way through the season. We do expect it to be strong," McMillon said, according to a White House transcript.

The business leaders' meeting came on the same day the Federal Trade Commission announced it was ordering Walmart, Kroger Co., Amazon.com, Tyson Foods and other large companies to hand over detailed information in an effort to identify the causes behind the supply-chain issues.

The study will look at whether the supply-chain disturbances are leading to shortages, anti-competitive practices and specific bottlenecks. The agency will require the companies to give internal documents on pricing and profit margins.

On the national level over the past four weeks, Walmart has seen about a 26% uptick in throughput when it comes to getting containers through ports, McMillon said at the meeting Monday.

"That's helped a lot as it relates to categories like toys, which are so important for Christmas," he said, according to the transcript.

But supply-chain disruptions are still an issue shaping the economy, according to the Federal Reserve. Labor shortages and supply-chain issues have constrained growth in several parts of the country, despite strong demand, a Fed report said this week. The report also concluded that the economy grew at a "modest to moderate" rate in October and early November in most of the Fed districts.

"The outlook for overall activity remained positive in most [areas], but some noted uncertainty about when supply chain and labor supply challenges would ease," the report said.

Meanwhile, more than 20 House Democrats issued a letter Thursday saying they are concerned about the supply-chain disruptions, arguing that the U.S. House of Representatives should take further action.

The disturbances, they said, are increasing inflation and bringing about delays.

"It is imperative Congress acts to address the needs of the nation through additional action to specifically address the supply chain and resulting higher prices experienced by families across the country," the lawmakers wrote in the letter.

The Biden administration has faced criticism from Republicans over its response to the supply-chain issues.

Best Buy, Samsung, Etsy, Mattel and other companies were represented at the meeting with Biden earlier this week. McMillon appeared virtually.

Kroger Chairman and CEO Rodney McMullen attended the meeting in person. The grocery retail executive said in a statement that the company is aiming to attract and retain employees.

"We feel great about our ability to serve our customers' needs through the holidays," he said in the statement.

Biden has highlighted his efforts to rev up operations at two Southern California ports, Los Angeles and Long Beach, according to the White House.

Biden outlined his administration's role in a speech on Wednesday, arguing the U.S. avoided a "potential crisis" and there have been financial incentives aimed at alleviating the supply-chain issues.

"The first thing we had to do was speed up the operations at our ports," Biden said during the speech. "Americans are buying more goods than ever and a lot of those goods come through our ports."

In the FTC orders, Walmart, Kroger, Tyson Foods and other large companies will be required to outline which factors are disrupting their capacity to transport and distribute products, along with what they are doing to alleviate the issues.

Agency Chairwoman Lina Khan issued a statement saying "supply chain disruptions are upending the provision and delivery of a wide array of goods," including things like meat, lumber and computer chips. Khan said she hopes the study will bring more information on "market conditions and business practices that may have worsened these disruptions or led to asymmetric effects."


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