Walmart 1998 Annual Report Download - page 19

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19
More importantly, we are begin-
ning to understand the true
meaning and benefits of being a
global company. The best of class
from all over the world now set the
benchmarks for our industry,
whether domestic or international.
“Speedy checkouts,” “gravity
walls” and new merchandise items
are examples of ideas from interna-
tional markets that we imported
and applied to our domestic busi-
ness. Just think of the multiplier
factor when we apply a new sales-
generating or cost-saving idea to
3,000 existing stores. This is what
we call “Global Learning.”
Our first two entries into the
global marketplace were Mexico
and Canada. Both were major con-
tributors to the international
success that we enjoyed this past
year and will be key components of
our future achievements.
Canada provided impressive
results with double-digit sales
increases and a near doubling of its
operating profits. Continued mar-
ket share gains and improved
results made Canada one of the
standout divisions of fiscal 1998.
Other highlights of fiscal 1998
for the International division:
• Wal-Mart has established itself
as the premier retailer in
Mexico with its purchase of
a 51 percent interest in Cifra,
that nation’s largest retailer.
Several analysts who follow
Wal-Mart have remarked on
the enormous potential of the
Mexican market, with its pop-
ulation of 92 million and GDP
of almost $335 billion.
• In addition, the high inflation
that currently characterizes
Mexico’s economy has been
a valuable learning experience
for Wal-Mart, as we learn how
to manage our business in
such an environment. We
expect to apply the experience
gained from combining our
strategy with Cifra’s to other
international markets.
• Wal-Mart now has operations
in a seventh international
market - Germany, which
we entered by purchasing
Wertkauf, an operator of
“hypermarkets,” one-stop
shopping facilities similar to
our Supercenters. With the
Wertkauf acquisition, Wal-Mart
gains 21 stores that did $1.2
billion in business in fiscal
1998, and perhaps more
importantly, entrée into
Germany, Europe’s largest
retail market.
• The International expansion
accelerates the development
of Wal-Mart as a global
“brand” along the lines
of Coca-Cola, Disney,
McDonald’s and others. “We
are a global brand name,” said
Bobby Martin, President of
the International Division.
“To customers everywhere it
means low cost, best value,
greatest selection of quality
merchandise and highest stan-
dards of customer service.“
In the long term, the success of
Wal-Mart’s entry into the global
arena means one thing to share-
holders: The entire world is our
marketplace. And wherever Wal-
Mart does business, we learn how
to do business better.
In the long term, the success
of Wal-Mart’s entry into the
global arena means one thing
to shareholders: The entire
world is our marketplace. And
wherever Wal-Mart does
business, we learn how to do
business better.
SHORTHAND