Walmart is loading up on inventory before tariffs hit to avoid price hikes later. Columbia (the jacket brand) is doing the same thing, but I don’t see them benefiting as much.
Does this mean Walmart’s stock is a good buy right now, or will they burn through their stockpile before the tariffs end? Are other companies like Costco doing this too?
Nobody really wins in a trade war. It’s about losing the least. Walmart’s customers aren’t exactly rolling in cash, so they can’t absorb endless price hikes.
Weston said:
Nobody really wins in a trade war. It’s about losing the least. Walmart’s customers aren’t exactly rolling in cash, so they can’t absorb endless price hikes.
That’s true, but Walmart tends to do better during recessions and inflation spikes. They’re built for low-income shoppers and have a supply chain that keeps costs down.
Trade wars aren’t good for anyone, but Walmart might take less of a hit than others.
Weston said:
Nobody really wins in a trade war. It’s about losing the least. Walmart’s customers aren’t exactly rolling in cash, so they can’t absorb endless price hikes.
Walmart always seems like the go-to during a recession. I wonder how many Target shoppers will switch over when money gets tight.
Weston said:
Nobody really wins in a trade war. It’s about losing the least. Walmart’s customers aren’t exactly rolling in cash, so they can’t absorb endless price hikes.
Tariffs used to be a Democrat thing. What changed?
@Chen
It was never a good policy. Back then, we didn’t have as much research showing how bad tariffs actually are.
A smarter approach would be tariffs based on real factors—like environmental standards, fair wages, or security alliances—rather than just politics.
@Chen
Tariffs are literally one of the pillars of communist economies. Just look at how well that worked out for them…
Shan said:
@Chen
Tariffs are literally one of the pillars of communist economies. Just look at how well that worked out for them…
Are you saying every European country is communist now?
Their stockpile won’t last forever. This is just a temporary boost in profits.
Adi said:
Their stockpile won’t last forever. This is just a temporary boost in profits.
As the saying goes, in the long run, we’re all dead.
Adi said:
Their stockpile won’t last forever. This is just a temporary boost in profits.
At this point, I’ll take any short-term gain I can get.
And who even knows if these tariffs will stick around. Remember the ones from 2017-18? The TikTok ban? It’s all unpredictable.
@Thayer
Are Trump’s first-term China tariffs still in place today?
Walmart’s grocery business has thin profit margins. Even if they stocked up, they might not make as much as people think, since taxes and higher costs eat into their bottom line.
Jody said:
Walmart’s grocery business has thin profit margins. Even if they stocked up, they might not make as much as people think, since taxes and higher costs eat into their bottom line.
And don’t forget, groceries spoil. How long can they really stock up?
Jody said:
Walmart’s grocery business has thin profit margins. Even if they stocked up, they might not make as much as people think, since taxes and higher costs eat into their bottom line.
Good point.
@Jamie
Companies using Palantir software for logistics will probably handle this better than others.
They still have to deal with higher costs, but Palantir helps optimize supply chains.
@Kade
Look, I get it. But Palantir helped roll out the COVID vaccine supply chain when things were a mess.
If anyone thinks I’m full of it, just check out AIPcon on YouTube and listen to their customers talk about it.
Former Walmart Store Manager here. They can stock up a little, but nothing crazy. Warehouse space is expensive, and they aren’t going to sit on inventory for long.
During COVID, I had to clear out warehouses full of back-to-school supplies we couldn’t sell. We donated it all to local schools instead.
@Pat
That’s interesting. At least the schools benefited.
Lots of companies are doing this, but just like COVID, you can only front-load inventory for so long before it becomes a problem.