Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Latest Breaking News
In reply to the discussion: Employers added 528,000 jobs in July, as the hot labor market powers on [View all]BumRushDaShow
(128,922 posts)39. I think we are getting it narrowed down to
corporate greed because these businesses get punished by the business media for not having excessive "profits" for the stockholders.
Walmart demand is down, but Americas warehouses are still filling up on inventory of goods
Published Tue, Jul 26 20223:16 PM EDTUpdated Wed, Jul 27 20229:44 AM EDT
Lori Ann LaRocco
@loriannlarocco
As major retailers Walmart and Target deal with waning demand from the consumer in some categories, warehouse capacity remains tight across the U.S. and inventories continue to pile up. Walmarts announcement this week that it was cutting its quarterly and full-year profit guidance is the latest retail casualty, showing inflations impact on the consumer and a shift in spending patterns that can whipsaw even the largest retailers. The company said it had to cut prices at its stores to reduce excess inventory.
That followed Targets slashed forecast for the second quarter last month, which it attributed to having too much merchandise, and particular categories, such as small appliances, that saw a drop in demand. The tight warehouse situation is not likely to change, according to Warehouse Quotes latest Warehouse Pricing Index (WPI). U.S. national vacancy rates are around 3%, and in port markets, the availability of space is around sub-1%.
Its really incredible, said Ben Hagedorn, CEO of Warehouse Quote in an interview that took place before Walmarts announcement this week. Weve also seen a 20% year-over-year rate increase for warehouse space, so we are seeing significant inflation there. We are also reporting seven consecutive quarters of positive net absorption. Warehouse capacity for imports remains to be an issue across the U.S.
Items being stored in warehouses, according to Hagedorn, are the typical seasonal items and durable goods like appliances. Hagedorn said the broader trends his firm is seeing inside the warehouse are a transition from the just in time to the just in case mentality among companies, and inventory-to-sales ratios continuing to go up across industries.
(snip)
https://www.cnbc.com/2022/07/26/the-bigger-warehouse-story-behind-the-walmart-consumer-demand-issues.html
Published Tue, Jul 26 20223:16 PM EDTUpdated Wed, Jul 27 20229:44 AM EDT
Lori Ann LaRocco
@loriannlarocco
As major retailers Walmart and Target deal with waning demand from the consumer in some categories, warehouse capacity remains tight across the U.S. and inventories continue to pile up. Walmarts announcement this week that it was cutting its quarterly and full-year profit guidance is the latest retail casualty, showing inflations impact on the consumer and a shift in spending patterns that can whipsaw even the largest retailers. The company said it had to cut prices at its stores to reduce excess inventory.
That followed Targets slashed forecast for the second quarter last month, which it attributed to having too much merchandise, and particular categories, such as small appliances, that saw a drop in demand. The tight warehouse situation is not likely to change, according to Warehouse Quotes latest Warehouse Pricing Index (WPI). U.S. national vacancy rates are around 3%, and in port markets, the availability of space is around sub-1%.
Its really incredible, said Ben Hagedorn, CEO of Warehouse Quote in an interview that took place before Walmarts announcement this week. Weve also seen a 20% year-over-year rate increase for warehouse space, so we are seeing significant inflation there. We are also reporting seven consecutive quarters of positive net absorption. Warehouse capacity for imports remains to be an issue across the U.S.
Items being stored in warehouses, according to Hagedorn, are the typical seasonal items and durable goods like appliances. Hagedorn said the broader trends his firm is seeing inside the warehouse are a transition from the just in time to the just in case mentality among companies, and inventory-to-sales ratios continuing to go up across industries.
(snip)
https://www.cnbc.com/2022/07/26/the-bigger-warehouse-story-behind-the-walmart-consumer-demand-issues.html
The company said it had to cut prices at its stores to reduce excess inventory.
"Cut prices" means they are overcharging = "inflation" (of prices) and "excess inventory" means NO "supply chain" issues for those products. And this -
Warehouse capacity for imports remains to be an issue across the U.S.
means they can't find enough warehouse space to store all of their supposed "supply chain issue" products.
Gotta keep "The Narrative®" going.
Edit history
Please sign in to view edit histories.
63 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
Employers added 528,000 jobs in July, as the hot labor market powers on [View all]
BumRushDaShow
Aug 2022
OP
The OP. I threw a quick "edited to add" at the bottom a minute later explaining my mistake. I'm
progree
Aug 2022
#8
it's more nuanced than that. With the job market like this, inflation is likely not receding.
Calista241
Aug 2022
#42
At the time, Slobfather's 3.5% was the lowest unemployment rate since May 1969 when it was 3.4%
progree
Aug 2022
#24
It was just last week the so-called financial experts were saying we were in a recession
JohnSJ
Aug 2022
#30
I can't do that. I can't compare wages to an inflation measure that excludes energy and food
progree
Aug 2022
#62
The US netted more jobs this month alone than the entirety of Donald Trump's presidency.
mahatmakanejeeves
Aug 2022
#52