Effect of Covid-19 On the Accounting Process of Walmart

The eruption of the corona virus pandemic has wrought much change in the business world and for this reason many businesses are reporting a change in the financial statements. There have been changes reported in the way businesses are being carried out now and this essay reports on one of the retail marketers in the USA, which is Walmart. As a mass merchant in the USA, Walmart is experiencing some delays in terms of casual shopping together with the fact that the supply chain of the company has been disrupted by a great deal. (Broughel, 2020) This is due to the fact that the mass merchant relies in China, the epicenter of the covid-19, for some of the supplies and this account to about 15% of their total supplies. The casual shopping trends of the retailer are seeing an irregular pattern, and this is highly affecting the accounting procedures of the mass merchant. The retailer is seeing disparities in the manner of shopping due to the fact that there are some hours when there are very low shoppers and sometimes of bulk shopping. Customers have to bulk shop as they have begun embracing the stay-at-home slogan. The stay-at-home slogan can only be made effective with the bulk buying strategy.

Due to the varying high and low buying at the Walmart retail shops, the company is seeing a uniform trend of its profits as compared to the other financial years. Michael Fiddelke describes the current situation of the market as “fluid” and his prospects are that the mass retailer won’t see no big changes in its financial expectations. The company’ expectations owe to the size of the company and the flexibility coming from their multi-category portfolio. The accounting processes of the company will not be affected tremendously due to the fact that the profits of the company are stable and also expected to be in line with the financial expectations of the company.

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