Walmart SKU Planning, EOL Strategy & Inventory Review
Original: Walmart Meeting Notes
This Walmart SKU planning meeting focused on finalizing Last-Time-Buy (LTB) quantities for two EOL SKUs and resolving an inventory distribution question for a third. The team aligned on 92,000 units for SKU 1388 (80K base + 12K eight-week buffer, EOL July) and approximately 143,000 units for SKU 1384 (25 units/week run rate + 19K eight-week buffer, accounting for a planned 1,000-store expansion in July, EOL July). For SKU 1339 (EOL October), the team worked through a nuanced discussion about how a 50-week supply figure is misleading when 185 stores are out of stock due to uneven inventory distribution, ultimately deciding no additional inventory should be shipped to Walmart for this SKU. Additional highlights included confirmation that all Walmart NPI items are on track, overall in-stock rates approaching 93%, and rollback promotions for SKUs 1681 and 1112 currently planned for Q4.
Chapters
7Opening & Walmart NPI Status Update
The team exchanges pleasantries and Dani provides a positive update that all Walmart NPI items reviewed the previous night are on track. Kyle confirms the forecast has been updated based on prices submitted via email, with expected units around 750K at Walmart scale.
SKU 1388 Last-Time-Buy Quantity & Run Rate Discussion
Kyle shares his screen to review SKU 1388, which is planned for EOL in July. The team debates the appropriate run rate and final buy quantity, weighing year-over-year sell-out trends and the risk of running short versus over-investing.
LTB Buffer Decision for SKU 1388
Jennifer recommends erring on the side of a higher buffer quantity to avoid shortages across key accounts including Target and Walmart. The team agrees on a base forecast of 80K units plus a 12K (8-week) buffer, totaling 92,000 units for SKU 1388.
SKU 1384 Last-Time-Buy Quantity & Store Count Expansion
The team reviews SKU 1384, noting it performs better due to its price point but has been down year-over-year. A significant store count increase is planned for July, and the group aligns on a run rate of 25 units per week with an 8-week buffer of approximately 19,000 units, totaling around 143,000 units.
SKU 1339 EOL Strategy & Inventory Shipment Decision
Kyle raises concerns about SKU 1339, which shows ~50 weeks of supply but only 80% in-stock rate, causing confusion about whether to send more inventory to Walmart. The team has an extended discussion about how weeks-of-supply can be misleading when inventory is unevenly distributed across stores, and ultimately aligns that no additional product should be shipped to Walmart for this SKU ahead of its October EOL.
Meeting Wrap-Up: In-Stock Rates & Rollback Promotions
The team confirms strong overall in-stock performance approaching 93%+ and notes the favorable timing heading into warmer months. David mentions Dani is working with Walmart on rollbacks for SKUs 1681 and 1112, currently planned for Q4.
Post-Meeting: Unrelated Audio (Dog Interaction & Course Walkthrough)
After the business meeting ends, the recording continues with Kyle speaking to his dog and then narrating what appears to be an orientation walkthrough for an unrelated online content creation course. This content is not related to the Walmart meeting.
Key Takeaways
- SKU 1388 LTB quantity finalized at 92,000 units: 80K base forecast (reflecting ~15% YoY growth over last year's ~13 units/week run rate) plus a 12K eight-week buffer to protect against shortages at Target, Walmart, and regional accounts ahead of July EOL.
- SKU 1384 LTB quantity aligned at approximately 143,000 units: run rate set at 25 units/week (slightly above the ~24 units/week projection after a planned ~1,000-store expansion in July) plus an ~19,000-unit eight-week buffer, despite the SKU being down 30-40% YoY prior to store count increase.
- No additional inventory should be shipped to Walmart for SKU 1339: the 50-week supply figure is misleading because 185 stores are completely out of stock while remaining stores hold excess inventory, making weeks-of-supply an unreliable indicator in low in-stock scenarios.
- Weeks-of-supply is only a reliable metric when in-stock rates are at or near 100%; when stores are unevenly stocked, unit sell-velocity (USW by store) provides a more accurate picture of true inventory need.
- All Walmart NPI items were confirmed on track following a review the previous evening, and updated forecasts were applied based on prices submitted via email, with expected units of approximately 750K at Walmart scale.
- Overall in-stock rate is approaching 93%+ heading into warmer months, which is considered favorable timing for having strong supply availability.
- Rollback promotions for SKUs 1681 and 1112 are currently planned for Q4; if timeline can be pulled forward, the forecast will be adjusted accordingly.
FAQ
Are SKUs 1388 and 1384 still planned for EOL in July?
Yes, both SKUs are confirmed for EOL in July. The team needed to align on final run rates and LTB quantities to communicate to the supply/BG team.
What run rate and buffer quantity should be used for SKU 1388's last-time-buy?
The team agreed on a base forecast of 80,000 units (reflecting approximately a 15% YoY increase over last year's ~13 units/week run rate) plus a 12,000-unit eight-week buffer, totaling 92,000 units. Jennifer recommended erring on the side of more inventory to avoid shortages across key accounts.
How does the planned store count increase affect SKU 1384's LTB run rate?
SKU 1384 is adding approximately 1,000 stores in July, increasing from roughly 2,800 to 3,800 doors. This brings the projected run rate from ~1,875 units/week to approximately 2,600 units/week. Dani calculated ~24 units/week by multiplying current units-per-store-per-week (0.64) by the new store count, and the team aligned on 25 units/week as the run rate.
SKU 1339 shows 50 weeks of supply but only 80% in-stock — should we ship more inventory to Walmart?
No. The 50-week supply figure is misleading because 185 Walmart stores have zero inventory while other stores hold excess. The weeks-of-supply metric does not account for where inventory is located across the store network. The team confirmed no additional product should be shipped to Walmart for SKU 1339 ahead of its October EOL.
If Walmart's on-hand weeks of supply is so high, why would they try to place a replenishment order?
Walmart's replenishment system flags the 185 stores that are out of stock and generates orders for those locations without considering the aggregate weeks-of-supply figure. Their buyer sees empty shelves in those stores and requests inventory. The team's approach is to deny shipment and explain the overall supply position, though Walmart can contractually push back citing out-of-stock stores.
When is the last-time-buy deadline, and what is the approval process after submitting quantities?
The exact deadline was not confirmed, but Stephanie had flagged it as urgent. After the team submits quantities, they will go through an approval process involving Tina, Mario, and the supply team. Jennifer noted the initial submission can be a higher buffer number, with an opportunity to adjust at final confirmation.
Action Items
- Kyle to update the LTB forecast for SKU 1388 to 92,000 units (80K base + 12K eight-week buffer) and submit to Stephanie for the supply/BG team.
- Kyle to update the LTB forecast for SKU 1384 to approximately 143,000 units (25 units/week run rate + ~19,000-unit eight-week buffer) and submit to Stephanie.
- Kyle to remove any planned inventory shipments or forecast entries for SKU 1339 at RJW/Walmart, confirming no additional supply will be sent ahead of October EOL.
- Dani to confirm with the relevant contact when inventory for the 90-day SKUs will be available in Chicago, then push Stephanie to get a confirmed date.
- Dani to continue working with Walmart on rollback promotions for SKUs 1681 and 1112, currently planned for Q4; Kyle will shift the forecast if the timeline is pulled forward.
- Team to use Mary and Stephanie to keep the existing NPI tracking file (created by Esther/Evelyn) updated, with Dani and team reviewing it together instead of scheduling a separate meeting.