The fuel price in the US is too higheven retail giants like Amazon and Walmart feeling crunchy. Currently, due to rising fuel prices, Walmart will charge some suppliers for the fuel that Walmart uses to transport products from the supplier’s warehouse to the retailer’s own warehouse and stores, like Reuters report.
Walmart will begin charging new fuel and apply a “collection fee” to certain suppliers. These new charges apply August 1 and beyond, according to a memo Walmart sent. It reveals something fascinating – and often overlooked – active between the companies that make the things we buy at Walmart and the retail giant itself, which leads in grocery sales in the United States.
This is basically Walmart delivering one amount to suppliers, then receiving another, because someone has to pay for gas to ship the merchandise that Walmart just bought and it wouldn’t be Walmart. This year, the company expects fuel costs to be $160 million higher than anticipated. Sorry! Furthermore, Walmart’s earnings reduce 25% – partly due to higher fuel and labor costs.
Follow Bloomberg. The memo says this is how the company is “adapting” to changes in the industry. And, oh my god, I hope auto dealers don’t see the memo and start calling tick “Adapting to the market.”
Walmart goes on to say that the new fuel surcharge will allow them to share accountability with suppliers, which sounds completely reasonable, doesn’t it? Sure, until Walmart US CEO John Furner also said that shifting fuel and shipping costs higher “protects profits where appropriate,” each Reuters.
I guess you don’t become the biggest retail chain in the US or the biggest e-commerce company – Walmart and Amazon – by eating not at all , not to mention the cost of fueling the trucks full of goods that will be sold in your supermarkets or online marketplaces. You then. It must be a good thing to get your own suppliers and workers to subsidize the costs of doing business.