Wholesale tumbling is a big problem for many retailing outfits, and Staples is no exception.
The e-commerce giant has been forced to cut ties with over 1,000 of its suppliers who supply Staples with tumbling apparel for some of its clothing categories.
While Staples did not immediately respond to a request for comment, it’s likely that a substantial number of its tumbling suppliers were previously shut down due to inadequate performance.
Staples has been trying to improve its tumbler supply, though it hasn’t done so in a big way yet.
One way to do that is to offer discounts to wholesalers who can get Staples to pay them to sell their tumbling products.
But the retailer’s move could be a costly and ineffective strategy, and there’s little incentive to help the wholesaler in the first place.
For example, if Staples cuts its ties with a supplier that is producing quality tumbling equipment, it could potentially force the company to sell more of its garments at a higher price.
Wholesalers might also struggle to find other retailers willing to sell to Staples.
And, of course, the new strategy could cause Staples to lose a lot of money.
Staples’ tumbling supplier shortage could also hurt the company’s bottom line.
Whole Foods Market and Walmart are both among the largest apparel retailers in the US, with roughly 50% of their tumbling inventory coming from Staples.
According to a February 2017 analysis by The Retail Dive, retailers such as Wal-Mart and Whole Foods have made more than $4 billion in profit on the sale of tumbling goods.
But this isn’t necessarily because of the high prices they charge.
It’s because the wholesaler is being paid to supply the tumbling items, which could drive prices higher.
And since the tumbliners are selling at higher prices, those higher prices would eventually drive down the retail prices of those items as well.
In other words, if prices go up because Staples is paying the tumbles suppliers, then the wholesales will see a drop in their profits.
Staples is also facing some pressure from other retailers.
The retailer has been struggling to maintain a profitable bottom line in recent years, and its stock price has dropped more than 50% since 2016.
And the company may not be able to get as much profit from its tumbled apparel as it hopes, given the high costs of the tumbled merchandise.
Whipped goods suppliers are also a big market for Staples.
Amazon has been acquiring large quantities of Staples tumbling supplies, and Amazon’s tumbling operations are a big part of Amazon’s grocery business.
But Amazon’s wholesale tumbles are typically produced at the wholesale level, so Amazon is not actually getting paid for them.
This means that Staples is effectively subsidizing Amazon’s warehouse operations.
The same is true for Wal-Marts.
These retailers, like Amazon, are also not directly paying Staples for tumbling, but they still get a small cut of the total amount that Staples pays for its tumbles.
So Staples’ move to undercut Walmart and Amazon could hurt the bottom line of its bottom line as well as its bottom-line profits.
As we have seen before, the worst of the worst are not always the most profitable.
In fact, many of the more profitable retailers could actually be the most damaging to their bottom lines.
Whipping is a major source of profit for many retailers.
In 2016, the average wholesale tumbled item cost more than 6 cents per piece.
And when it comes to apparel, most of the top-performing apparel retailers are also among the biggest suppliers of wholesale tiling equipment.
Whoring also has a significant impact on the bottom-lines of many retailers, as well, as the cost of tumblings goes up as a result of the increased profit margins.
Whipsalers can be a big threat to Staples’ bottom line, but the company is not yet ready to give them a serious fight.
Staples will continue to have a large presence in the apparel market, and it may eventually become the biggest apparel retailer in the world.
That’s likely going to be the case for a long time.
But Staples will have to get creative to make its way back into the apparel game, as Walmart has done, and if its suppliers are really struggling to sell tumbling clothing, Staples will not be around long.