
"Walmart cakes aren't baked on-site. They are pre-made in another facility and frozen. The cakes are sent to stores to be assembled and decorated as needed."
"Since most of the work is done in a larger facility that deals in bulk, costs are kept down by mass producing cakes. A Walmart cake that can serve almost 100 people costs as little as one-third of what the same cake would cost at most independent bakeries."
"Some have suggested that Walmart's bakery sells at such low prices because it's a loss leader. However, the AP reported that Walmart's cake business has higher profit margins than grocery or electronics."
Walmart's bakery provides custom cakes at significantly lower prices than local bakers, with many cakes under $20. These cakes are pre-made, frozen, and decorated in-store. Walmart's efficient mass production allows for lower costs, with cakes serving up to 100 people priced much lower than independent bakeries. Despite criticisms of being overly sugary, Walmart's cake business has higher profit margins than other departments, generating substantial revenue.
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