Walmart Plunges 5.86% Amid China Store Closures, Supplier Pressure

On April 3, 2025, Walmart's stock experienced a significant drop of 5.86% in pre-market trading, reflecting investor concerns and market dynamics.

Walmart's recent decision to close its Europe City store in Wenzhou, China, has raised concerns about the company's operational strategy in the region. The closure, scheduled for May 1, 2025, follows similar moves at other Wenzhou locations, leaving only three stores and one Sam's Club in the area. This decision comes amid reports of significant stock shortages and customer panic buying, indicating potential supply chain issues and consumer anxiety.

Additionally, Walmart's ongoing pressure on Chinese suppliers to reduce prices to offset U.S. tariffs has drawn criticism. Despite being summoned by the Chinese Ministry of Commerce, Walmart has continued to demand price cuts of up to 10% for each new round of tariffs, effectively shifting the burden onto suppliers. This strategy, while aimed at maintaining low prices for consumers, has sparked controversy and potential backlash from both suppliers and regulatory bodies.