Walmart to Begin Charging Some Suppliers Fuel and Pickup Fees; Charles Redfield and Chris Nicholas Comment
BENTONVILLE, AR - Changes are coming down the pike for some of Walmart’s supplier partners. The retailer released a memo last week outlining its plans to charge new fuel and pickup fees as its own costs continue to rise.
"This program is a result of Walmart adapting to the significant transformation and increased costs seen in the transportation industry over the past few years," read the memo sent from two Walmart executives, Chief Merchandising Officer Charles Redfield and Chief Operating Officer for Walmart U.S. Chris Nicholas. "The changes outlined…allow us to share cost accountability with our Collect suppliers, helping to enable us to meet our everyday low price commitment to our customers."
According to Reuters, Walmart will be charging a “collect pickup charge,” which will be a percentage of the cost of goods received, as well as a fuel surcharge. Just over a month ago, Walmart had cut its full-year profit outlook, citing rising labor and fuel costs as the primary causes.
As to how this implementation will impact fresh produce suppliers, we are still unsure. But, as always, AndNowUKnow will keep you informed.