Walmart 1997 Annual Report Download - page 5

The significant increase in
both the dividend and the
share repurchase program
demonstrate our confidence
in the Company’s future earn-
ings and cash flow growth.
We believe our double digit
earnings growth combined with
the new shareholder initiatives
will allow us to achieve
our targeted annual
total shareholder return
of 15%.
In June of 1990, at our
annual shareholder’s
meeting, Sam Walton
predicted Wal-Mart
would reach $100 billion
in sales by the year
2000. At that time, we
thought the goal was
quite a stretch. After all,
it took us 10 years to reach
$100 million and another 7 to
reach our first billion. But our
strength has always been our
dedicated associates, their ability
to work together, and the
support of our loyal customers.
So 3 years ahead of schedule,
we reached that goal.
Even though we exceeded
that lofty goal, there is still
plenty of room left to grow.
In the United States, Wal-Mart
holds only 7% of a $1.4 trillion
retail market. That leaves a
tremendous opportunity for
future growth.
The supermarket industry,
amounting to $425 billion a
year, is a great opportunity for
continued growth. It’s almost
three times the size of the
discount store industry, where
Wal-Mart is one of the three
retailers that, combined, hold
almost 85 percent of the market.
Yet in the grocery segment, the
top five players constitute less
than 25%.
Then there is the rest of the
world. Our international
division reported sales in
excess of $5 billion and these
operations could represent
10 percent of our total sales in
the next 5 years.
The international division
was profitable for the year with
Canada and Puerto Rico
showing excellent results and
Mexico achieving profitability
in a difficult economy.
Only three years after
acquiring the Woolco stores in
Canada, Wal-Mart has become
Canada’s highest volume
discount retailer and in Mexico
our joint venture is also the
country’s largest retailer.
The value our customers
respond to in the United States
is enthusiastically received
wherever we go. In China,
where we recently opened our
first units, the people already
know what Wal-Mart is all
about. Our three story
Supercenter had 80,000 visitors
on its first Saturday.
With over 300 locations and
more than 50,000 associates
outside the United States,
Wal-Mart has become a true
global brand name, with
worldwide appeal resembling
Coca-Cola or McDonald’s.
The Wal-Mart way of doing
business makes us one of
the world’s most recognizable
companies - which translates
to loyal customers and steady
profitable growth.
Wal-Mart associates have
every right to be proud of what
we’ve built, from our very first
store to today’s worldwide
network of nearly 3,000
stores and clubs. We’re the
company that works
because of our people - the
associates who make it
happen every day.
So if anyone wonders
where our next $100
billion will come from – it
will come from customers
who recognize value
throughout the world and
from our associates who
will deliver it with a smile.
I am really excited about the
next year. We have so much
opportunity and our team is
focused on continuing to serve
our customers in such a way
that clearly indicates they are
the boss. But more importantly,
they are focused on value.
Value to our customers and
value to our shareholders.
3
In June of 1990, Sam
Walton predicted Wal-Mart
would reach $100 billion in
sales by the year 2000. At
that time, we thought the
goal was quite a stretch.