Due to supply chain snarls, some inventory arrived too late to sell during the right season, which has prompted various big box retails to announce discounts to decrease unwanted inventories and attract more buyers in general."ĭani Romero is a reporter for Yahoo Finance. eSellerHub offers the best Walmart inventory management software and system to help list products from any marketplace. "In other words, the inventory in stock isn’t what consumers are trying to buy. "Second, there is a mismatch between supply and demand in inventories," they added. "However, consumers quickly rotated to services spending this year and high inflation is also keeping some consumers at bay." "Big box retailers stocked a large amount of items such as home goods, electronics and big ticket items expecting continued resilience in demand," the analysts wrote. This issue for retailers has been months in the making, according to BofA. Inventory to sales ratio: general merchandise (monthly, %, SA) “We’re now anticipating more pressure on general merchandise in the back half. is requiring more markdown dollars,” Walmart CEO Doug McMillon said in a statement. “The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. The news sent shares more than 7% lower as of the market close on Tuesday. On Monday, Walmart revised its full-year earnings forecast down to -11% to -13% from -1% previously. “At one extreme, general merchandise stores are overstocked,” the analysts wrote, “but the good news is that excess inventories could put downward pressure on inflation as big box retailers mark down their prices to entice consumers.” Walmart ( WMT), the world’s biggest retailer, gave a snapshot on Monday of how inflation is pressuring consumers' ability to spend on discretionary items.īut there could be relief ahead as retailers look to move bloated inventories, according to a new note by Bank of America (BofA).