Companies that sell products to Walmart are resisting new charges and terms that add to their costs and slow payments, according to Bloomberg.  The charges include storage charges for products in Walmart distribution centers and charges for shelf space in new stores; while the terms changes tie frequency of payment to the pace of sales of a supplier’s inventory, according to the report.  Some suppliers are refusing to pay the new charges, or have hired lawyers.   

Walmart has always pressured suppliers to give it the absolute lowest price possible, and earlier this year took the additional step of urging suppliers to cut marketing and promotion costs and apply the savings to lower prices.  The addition of new charges on an already very lean supply chain appears to some to be just another way to extract more price concessions to support sagging sales or increasing costs.

Walmart recently launched its holiday promotions two weeks earlier than its previous record (see “Walmart Kicks Off Christmas Promotions”), another move that some interpret as a sign that the retailer is struggling in a very competitive retail environment.