Wal-Mart to charge vendors for using US stores and warehouses

US retailing giant Wal-Mart is set to charge most of its vendors for stocking their goods in US stores and for warehousing inventory, Reuters reported, citing a company letter to suppliers.

The company started informing suppliers about the fees and other changes to supplier agreements, which are expected to impact 10,000 suppliers to its US stores.

With the changes, the company intends to bring "consistency to the collection of allowances related to the growth of our business and suppliers' use of the Walmart supply network", according to the letter seen by Reuters.

Some but not all suppliers were charged, spokeswoman Molly Blakeman told the news agency.

IBTimes UK has contacted Wal-Mart, and is awaiting a comment from the firm.

The retailer is looking to pass on some of its rising costs to its suppliers with the new move.

As per the amended terms, Wal-Mart would charge a food supplier 10% of the value of inventory shipped to new stores and to new warehouses, both one-time charges, and 1% to hold inventory in existing warehouses. Currently, the supplier is not charged anything.

"This approach suggests that they are seeking areas to offset their increased investment in wages, as well as offset their lack of organic revenue growth," said Kurt Jetta, head of consumer and retail analytics firm Tabs Group.