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Walmart’s step of canceling orders affect Bangladeshi apparel manufacturers

BTJ Desk Report
Walmart's step of canceling orders affect Bangladeshi apparel manufacturers

Walmart’s step of canceling billions of dollars in orders as part of a continued effort to align inventory levels and pursue the demands of budget-conscious consumers has started affecting the apparel sector in Bangladesh, media reported.

Walmart, one of the major buyers of Bangladesh’s ready made garments (RMG), which has cleared out most of its summer collections ahead of the back-to-school season – which has begun in large parts of the South – and the upcoming holiday period, reports Freight Waves.

They said the company is making progress redesigning its inventories but it will take at least a couple more quarters to wring the imbalances out of its network.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Vice-President Rakibul Alam Chowdhury told the media that the industry is suffering as the American multinational retailer had already canceled some orders and also has suspended shipments of some orders ready for delivery and halted those in process.

However, he said that, although none of the factory owners informed BGMEA about order cancellations, the organization contacted its member factories on its own saying that they have asked factories to formally report the order cancellations to the association.


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