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Walmart suppliers have been notified that defective allowance rates will be reset this coming February based on FY26 actual performance. While the change is positioned as a move toward simplicity and predictability, it also means many suppliers could see their rates shift — and not always in their favor.
Why This Matters Now
The new rates will be calculated using actual data from October 1, 2024 – September 30, 2025, giving suppliers only a brief window to review their own return and defect data before it’s locked in. Once February 1 hits, those rates become the new baseline for supplier agreements.
The Opportunity Before February
Between now and December, suppliers have time to:
- Analyze trends in Walmart’s CARS or internal data
- Model their true defect rate to compare against system metrics
- Identify errors in how defects are classified
- Prepare a strategy for negotiating or validating rates before they’re finalized
STAT’s team can help with each of these steps — ensuring your data tells the right story before the rates are set.
After the Reset
Once the new allowance rates take effect, our post-audit and recovery services can monitor, track, and recover charges that misalign with your retailer agreements to ensure accuracy between supplier and retailer.
The next few months are critical for getting in front of this change.
If your team wants to understand exposure, validate data accuracy, or strategize around rate impacts, schedule a consultation with STAT before December.
For questions around how this impacts invoicing, forecasting, profitability, Network Allowance, or Supplier Agreement negotiations, reach out to:
- Your Client Experience Manager (existing clients)
- Our Sales Team (new partners)
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