Walmart is asking for price cuts from Chinese suppliers after it said it should share in the savings generated by the devaluation of China’s yuan.
The retail giant has contacted more than 10,000 suppliers seeking cost cuts of between 2% and 6% on general merchandise products, according to Reuters.
The product ranges Walmart is seeking reductions on reportedly include home furnishings, clothing, health and beauty products, electricals and toys.
Walmart is demanding suppliers pass on savings from the yuan devaluation so it can continue to offer its customers “everyday low cost”.
Suppliers have told Reuters they intend to negotiate a reduction in the proposed price cuts.
The move came after China devalued its currency last month in an attempt to maintain its flagging economic growth and boost exports.
China devalued the currency by nearly 2% on August 11, representing the most significant downward adjustment since 1994.
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