![]() Rival Walmart in August will begin to charge some of its suppliers new fuel and pickup fees to transport goods to its warehouses and stores, according to a memo seen by Reuters. (GRAPHIC: U.S retail inventory surge tracks rise in consumer goods prices - ) The 11 who spoke with Reuters sell everything from food, to children's clothing and toys, although they represent a small sample. To be sure, Target secures merchandise from thousands of suppliers, analysts say. Target also said in the June blog post that it would cancel orders, work with vendors to shorten lead times and ask them to help offset inflationary pressures. Census Bureau.Ī Target spokesperson said it "maintained open and transparent conversations with our vendor partners," but declined to comment on Exploding Kittens. Inventories at general-merchandise stores rose 31.3% to reach $104.65 billion as of the end of April, the highest level since at least 2000, according to preliminary estimates from the U.S. Target's moves could be an early harbinger of pain for some of the millions of small and mid-sized general-merchandise suppliers whose products sit on retail shelves. So we are shifting that stuff to the United States and have to use our own freight," eating into margins, she said. "We now have stock in China that Target does not need. "We are having to hold back some orders" in China, she said. Because Target previously would pick up the games directly in China, the change adds to Exploding Kittens' transportation and storage costs, she said. Two other vendors said that Target asked them to hold some inventories in their own warehouses, forwarding the goods to Target only on an as-needed basis.Ĭarly McGinnis, president of Exploding Kittens, Inc, which makes card games in China sold at Target, said Target asked it to send its games directly to Target's distribution centers from its U.S. warehouses, adding to vendors' costs, two vendors told Reuters. Specifically, Target told some vendors it will cease transporting some merchandise they manufacture in China, instead ordering the same goods from their U.S. Six of the vendors said Target's recent moves drive up their expenses and squeeze their profit margins at a time when Target wants to free up cash in order to restock its stores as consumers gear up for back-to-school shopping. Behind the scenes, Target's actions this summer include putting pressure on its vendors, asking them to pick up the tab for transporting goods and requiring some to retain more merchandise at their own warehouses, 11 Target vendors told Reuters.
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