What effect do seasonal trends have on Walmart's inventory?

Seasonal trends significantly influence Walmart's inventory decisions and promotional strategies. As seasons change, customers' shopping behaviors and preferences evolve, requiring retailers like Walmart to adapt their inventory accordingly. For example, during holidays such as Christmas or back-to-school season, Walmart anticipates increased demand for specific items, such as toys or school supplies.

To align inventory levels with anticipated demand during these peak seasons, Walmart may increase stock on popular seasonal items while reducing inventory on products with lower seasonal relevance. Additionally, promotional strategies can be tailored around these trends to optimize sales; for example, introducing special discounts or bundles that attract more customers during peak shopping seasons.

Understanding and responding to these trends ensures that Walmart can meet customer needs effectively while also maximizing sales and reducing excess inventory after the season ends. Therefore, the correct answer highlights the critical role that seasonal trends play in shaping Walmart's inventory management and promotional efforts.