Walmart Faces Apparel Cost Pressure as Polyester Prices Climb 30% and Output Drops 60%
Middle East conflict has driven oil-based polyester feedstock costs up roughly 30% for Indian suppliers, slashing Surat mill output from 11,000 to about 4,000 yards per day and risking higher apparel costs for Walmart. Walmart is among roughly 45 retailers planning leadership changes in 2025, up from 32.
1. Impact of Middle East Conflict on Polyester Costs
War-driven oil price increases have pushed polyester feedstock costs up about 30% for Indian suppliers, as crude price volatility raises costs of the oil-based chemicals used in polyester production.
2. Production Slumps at Indian Mills
Major producers like Filatex report paying nearly 30% more for raw materials, while Surat weaving district mills have cut output from around 11,000 yards per day to 3,800–4,300 yards due to higher costs and labor shortages.
3. Walmart Apparel Segment Faces Cost Pressure
Walmart, which sources printed and dyed polyester fabrics from these mills, may face increased sourcing costs; the retailer's use of earlier purchases and recycled polyester offers some protection, but sustained price rises could squeeze margins or lead to higher prices for consumers.
4. 2025 Retail Leadership Changes
Separately, roughly 45 retail companies plan leadership transitions in 2025, up from about 32 the year before, with Walmart listed among firms reviewing CEO and other executive appointments.