Walmart is gradually shifting its focus to India for imports, reducing reliance on China, according to data from Import Yeti cited by Reuters. The world’s largest retailer seems to be aiming to reduce costs and diversify its supply chains. Between January and August this year, Walmart imported a quarter of its goods to the US from India, a significant increase from the 2% reported in 2018. During the same 2018 period, 80% of Walmart’s imports came from China, which has now decreased to 60%. Despite this shift, China remains Walmart’s largest country for imports.
The move is reportedly driven by increasing import costs from China, and the ongoing political tensions between the US and China are compelling major US companies to seek imports from alternative countries such as India, Thailand, and Vietnam.
Andrea Albright, Walmart’s executive vice president of sourcing, emphasized the need for resilient supply chains, stating, “We want the best prices. That means I need resiliency in our supply chains. I can’t be reliant on any one supplier or geography for my product because we’re constantly managing things from hurricanes and earthquakes to shortages in raw materials.”
Walmart, in response to the data, mentioned that it does not necessarily indicate a complete shift from one sourcing market and emphasized that it is a growth business working to source more manufacturing capacity. The statement from Walmart suggests that the company is adapting its global sourcing strategy to ensure flexibility and cost-effectiveness amid dynamic geopolitical and economic landscapes.
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