Walmart 2002 Annual Report Download - page 6

4
The Company We Keep
Associates Keep Wal-Mart Thriving in a Difficult Year for Retail
It was not a typical year. Then again,
our Associates are not typical people.
In a rough year for the U.S. economy –
and a miserable one for the retail industry –
the 1.4 million hard-working Associates at
Wal-Mart and SAM’S CLUBS managed
to achieve two very impressive feats:
increasing revenue by 13.8 percent over
the previous year in the face of economic
adversity, and constructing almost 200
new stores.
How did Wal-Mart Associates do it?
They simply provided amazing customer
service, kept costs down so we could
continue to offer low prices, and created
a comfortable shopping environment
where customers feel safe, no matter what
is going on outside in the world.
Compared to recent years, when
the economy was more robust and the
world was not yet at war with terrorism,
Wal-Mart’s fiscal 2002 financial
performance is not as impressive on paper.
But when you consider that the country
fell into a recession during the year, with
consumers retreating after the terrorist
attacks of September 11, it is clear that
fiscal 2002 was a good year for Wal-Mart.
Best of all, our opportunities for growth
still seem abundant.
As many retailers reported stagnant or
declining sales, cancelled their plans for
new stores and even filed for bankruptcy,
Wal-Mart moved forward with its growth
plans, knowing that it was building long-
term market share, and creating great
opportunities to serve customers, Associates
and investors. Wal-Mart spent nearly
$8.3 billion last year to build stores,
distribution centers and make other capital
investments to continue the growth of this
business. But the most important capital
we have is the Human Capital invested
in our business.
Our Associates keep Wal-Mart thriving
during the difficult times. For this
Company’s success to continue, we must
constantly develop future leaders who
understand our goals, especially in relation
to our customers. To do that, we nurture
these leaders from their earliest days with
the Company.
More than 60 percent of our store
managers were “grown” through the
Wal-Mart organization, starting as store
Associates who served customers as part of
their daily responsibilities. As the Company
moves forward, it is even more important
that we help develop from within the talent
needed to run these stores, clubs and
distribution centers.