Bangladesh: Walmart cancels billions of dollars in orders
"RMG makers fear losses as Walmart cancels orders globally", 20 August 2022
Walmart, one of the major buyers of Bangladesh's readymade garments (RMG), has cancelled billions of dollars in orders as part of a continued effort to align inventory levels and pursue the demands of budget-conscious consumers.
The company executives said the US retailer has cleared out most of its summer collections ahead of the back-to-school season – which has begun in large parts of the South – and the upcoming holiday period...
They said the company is making progress redesigning its inventories but it will take at least a couple more quarters to wring the imbalances out of its network...
...,Kutubuddin Ahmed, chairman of Envoy Textiles Limited...said, "We have observed that Walmart has been reducing its orders in terms of both number and volume in garment factories for the last few weeks."
Those textile millers are supplying fabrics for that brand, they also face a shortage of orders, he added.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Vice-President Rakibul Alam Chowdhury said that the industry is suffering as the American multinational retailer had already cancelled some orders.
It has suspended shipments of some orders ready for delivery and halted those in process, he added.
Rakibul Alam said that although none of the factory owners informed BGMEA about order cancellations, the organisation contacted its member factories on its own.
Member factories have been asked to formally report the order cancellations to the association, he added...