Home / China-US economic relations

    Wal-Mart presses suppliers to share benefits of the yuan

    (Agencies)

    Updated: 2015-09-25 08:03:02

    Wal-Mart presses suppliers to share benefits of the yuan

    An outlet of Wal-Mart in Yichang, Hubei province, China. [Photo/China Daily]

    Wal-Mart Stores Inc is seeking price cuts from suppliers that produce goods in China, saying the retailer should share in the savings generated by China's depreciation of the yuan, people with knowledge of the matter said.

    Wal-Mart managers in recent weeks have contacted more than 10,000 suppliers in various countries, all of which have manufacturing facilities in China, seeking cost cuts of 2 percent to 6 percent on mainly general merchandise including home furnishings, apparel, health and beauty products, appliances, electronics and toys, according to a consultant who advised Wal-Mart on the move and spoke on condition of anonymity to protect his relationship with the retailer.

    The company is telling suppliers that they should pass on the savings arising from the yuan depreciation so Wal-Mart can achieve EDLC, or "everyday low cost", its term for the tight cost controls needed to keep prices low for consumers, according to executives at two vendors of durable goods, who also requested anonymity. Both were asked for cuts in the lower half of the 2 percent to 6 percent range. Both said they planned to negotiate a reduction in the proposed cuts.

    Wal-Mart spokeswoman Deisha Barnett declined to comment on whether the company was seeking price cuts in China-made goods. With almost $500 billion in annual sales and a globally diversified supply chain, Wal-Mart holds tremendous sway over its vendors, which could risk their business with the retailer by pushing back too hard on its requests to lower costs.

    The move by the world's largest retailer follows efforts by other retailers to benefit from a cheaper yuan. A senior Toys R Us official told Reuters that the company was "engaging" with suppliers about improving terms. Home Depot Inc Chief Financial Officer Carol Tome said they had identified potential cost savings from the currency's decline and would pursue them.

    Last month, China allowed its currency to depreciate in a bid to boost growth and help flagging exports. The nearly 2 percent cut on Aug 11was the most significant downward adjustment to the yuan since 1994. The currency is down 2.9 percent versus the dollar so far this year, making exports from the country less expensive when purchased with dollars, the currency most often used in supplier contracts.

    Wal-Mart's latest overture to suppliers comes as it seeks to push through broader changes designed to lower its costs through changes to vendor agreements. In June, Wal-Mart began asking all suppliers to pay fees to store inventory in its warehouses and in some cases has sought to extend the time Wal-Mart takes to pay its vendors.

    Wal-Mart has been struggling to shore up its profit margins, which have been weighed down by a $1 billion investment announced earlier this year to increase wages for half a million store-level workers and other cost pressures.

     
    ...
    无码福利写真片视频在线播放| 日韩精品人妻系列无码专区免费| 人妻系列无码专区无码中出| 今天免费中文字幕视频| 日韩人妻精品无码一区二区三区 | 久久久这里有精品中文字幕| 亚洲精品无码不卡| 亚洲精品无码成人片久久| 中文www新版资源在线| 一级毛片中出无码| 国产亚洲?V无码?V男人的天堂 | 无码国产精品一区二区免费式直播 | 亚洲免费日韩无码系列 | 精品久久久久久无码人妻蜜桃| 国产日韩AV免费无码一区二区| 无码人妻精品中文字幕| 伊人蕉久中文字幕无码专区| 久久中文字幕无码专区| 成人午夜福利免费无码视频| 人妻无码αv中文字幕久久| 亚洲大尺度无码专区尤物| 日韩精品无码一区二区视频| 中文字幕在线资源| 欧美精品中文字幕亚洲专区| 熟妇人妻中文a∨无码| 在线精品自拍无码| 亚洲AV永久无码天堂影院| 久久精品无码专区免费 | 中文人妻av高清一区二区| 无码日韩精品一区二区人妻| 亚洲国产精品无码久久青草| 亚洲国产综合精品中文第一| 亚洲国产精品无码中文字| 中文字幕日本人妻久久久免费| 亚洲中文字幕无码久久精品1| 亚洲无av在线中文字幕| 天堂最新版中文网| 亚洲国产中文v高清在线观看 | 亚洲成AV人在线播放无码| 亚洲精品无码国产| 国产精品三级在线观看无码|