Allegedly, Walmart has been lying about its results and online growth to stay ahead of the e-commerce game at any cost. According to a lawsuit filed by Walmart former employe, Walmart has been deceiving its investors with false numbers. The news comes the day after Walmart announces its plans to spread its online delivery and improve its online ordering services to a large number of its stores in the United States, in an aim to fend off its competitors such as Amazon.
Bloomberg noted in a posted that, Tri Huynh, a former director of business development for Walmart listed out the concerns about possible unethical practices the grocery giant has been adapting to show e-commerce growth, and demonstrate its progress compared to other retailers and how the company managed to survive competition faced from Amazon. And Tri Huynh was let go for bringing this up with his seniors back in Jan 2017.
These practices included mislabelling and improperly categorizing products so that the vendors would have to pay a higher commission than required and further leading to an inflation in sales by incorrectly reporting items that were returned by the customers. Huynh claims that Walmart has shown artificial growth against its languor competitors.
Walmart sticks to the fact that the company had to let go of Tri Hunch as a part of internal resurrecting and that the current litigation comes from a disgruntled former employee. Walmart told The Verge in an email that, “We take allegations like this seriously and looked into them when they were brought to our attention. The investigation found nothing to suggest that the company acted improperly. We intend to vigorously defend the company against these claims.”
Walmart reported on Friday that its United State’s e-commerce sales went up by 23% over the financial year of 2017 and its online revenue has shown a 44% increase.