The Wal-Mart Weekly: Chinese suppliers balk at low prices
Posted by: in Stocks Money NewsFiled under: Wal-Mart (WMT), Columns
Welcome to the 35th installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions and just a bit of everything else when it comes down to a very hot topic these days: Wal-Mart.
Last week, I looked at the possibility of Wal-Mart Stores, Inc. (NYSE: WMT) offering an expanded online grocery ordering and home/business delivery service. From coast to coast, there really is not a nationwide solution to this right now, although several valiant attempts in the past (like Webvan) have failed.
This week a hot-button issue will be discussed: are Wal-Mart’s prices becoming so low that the many Chinese-based suppliers that supply all those goods to the world’s largest retailer may have future problems making money themselves? It’s odd to hear that Chinese companies are starting to say that Wal-Mart’s prices are too low for them to make a decent profit. If it’s true, then a pricing revolution within the retailer may be on the horizon.
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