![]() Meanwhile, employees say they are paying the price for the excess inventory. In a 2006 press release, the company said "the benefits of RFID, especially with regard to reducing out-of-stocks, as well as reducing excess inventory," had been documented in a study by the University of Arkansas that the school released in 2005. The RFID technology serves as one data point for whether an item should get replenished, but the spokesperson disputed the characterization of it as an automatic-ordering system. The employee said that given the glut of packages, associates don't have time to process the packages in a timely manner - leading the system to automatically order more of the same items.Ī Walmart spokesperson said the company started widely rolling out new RFID technology in 2020 to track merchandise. "We have hit a terrible point where the system auto-orders more of the stuff we already have."Īccording to the Minnesota employee, the new system does not account for items that employees do not label or place in bins when they arrive at the store. ![]() "Right now at my store, we are getting slammed with nonstop freight," an employee who works at a Walmart store in Minnesota said. Walmart's new inventory system has automatically ordered supplies the stores already have, according to several Walmart employees and posts on employee message boards. While inflation, supply-chain issues, and changing consumer behavior have caused many of Walmart's overstock woes, the retailer's new inventory system seems to have exacerbated the problem. Walmart excess inventory blocking a private breastfeeding room. "As inventory has become an issue for all retailers, we've increased our focus on creating a safe working environment," the spokesperson said. Their identities are known to Insider.Ī Walmart spokesperson told Insider that "nothing is more important to us than the health and safety of our associates and customers." All spoke on the condition of anonymity out of fear of retaliation. They described myriad pallets rendering floors nearly unwalkable, towering boxes that have blocked access to places like private breastfeeding rooms and bathrooms, and outdoor trailers stuffed with excess inventory. ![]() Insider spoke with six current employees who work in the back rooms of Walmart stores across the country. On the ground floor, Walmart store employees are wrestling with the consequences of this overstock, and analysts say it may be another year before Walmart gets the situation under control. What started as runs on products like toilet paper - leaving Walmart's shelves empty of many items - turned into the world's largest retailer ordering a surplus of goods above their customers' overall demand. Just as it did for many other big-box retailers, the pandemic created a stocking whirlwind for Walmart. Industry analysts say the retailer will have to work through the inventory for months into 2023.Īfter finishing last quarter with a 32% increase in inventory due to inflation and supply-chain issues, Doug McMillon, the CEO of Walmart, vowed the company would "work through" excess goods "over the next couple of quarters.".Employees describe nearly unwalkable back rooms filled with pallets and outdoor storage trailers.Walmart finished last quarter with a 32% increase in inventory, causing stores to need more space. ![]() Account icon An icon in the shape of a person's head and shoulders. ![]()
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