Part 4/10:
Tariffs and Operational Strategies
Delving deeper into Walmart's operational strategies, concerns regarding potential tariffs emerged as a prominent topic of discussion. Chen emphasized the necessity for Walmart to navigate the dynamic environment, outlining that the impact of these tariffs would likely result in some cost increases being passed to consumers while others might be absorbed through margin reductions. Walmart's robust negotiating power with suppliers and its superior ability to offer discounts means it can navigate these headwinds more effectively than some competitors like Target.