Walmart’s excess inventory forces sales amid record inflation

Record inflation has resulted in a glut of inventory at major retailers.

Save with thousands of rollbacks

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As inflation hit its highest level in four decades – more than 9% — consumers have changed their buying habits to save money as a result. With rising gas and food prices, other regions have seen their sales fall. It’s no more obvious than with a mega retailer Walmart, which has begun lowering prices for clothing and high-end goods to help free up shelf space and move products.

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With shoppers redesigning their baskets to see where they can cut back, there has been less discretionary spending on non-essentials. This leads to retailers like Walmart and Target, to have a backlog of inventory that they cannot move. Walmart, for example, dropped hundreds of products in “Rollback” sales, from high-end tech like iPads and the Meta Quest 2, to underwear and sneakers.

Merchandise like clothing is season-specific, so if consumers aren’t buying summer-related items now, retailers must cut prices to free up shelf space. This reduction in discretionary spending also coincided with supply chains are returning to normal as a result of the pandemic, which means even more excess goods.

While most consumer spending news has been bad for 2022, this glut of goods is an invitation for many to revise their desires. In short, you can potentially get a good deal at Walmart, even if higher inflation has made you think otherwise.