Walmart 2002 Annual Report Download - page 9

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from Europe and other regions of the world
for sale in the U.S. and elsewhere.
Thinking Locally
One of the best things about global
sourcing is that it frees up local buyers
to work on other projects that are essential
to Wal-Mart’s merchant-centered culture.
A good example is the “Store of the
Community” program, which ensures that
the mix of retail goods sold at each store
closely reflects the needs of the community
it serves.
From allowing local climates to guide
the selection of apparel and nursery
plants, to adding cosmetic items desired
by particular ethnic groups, Wal-Mart
buyers, store managers and other Associates
ensure that each store is tailored for
its community. Merchant skills are also
fostered by Wal-Mart’s Store-Within-a-
Store concept, which gives Associates
the freedom to manage and merchandise
their departments – electronics, sporting
goods, etc. – as if they were separate shops
under one roof.
Thinking Creatively
Perhaps the most intriguing way
that Associates hone their merchant skills
is through the (Volume Producing Item)
contest. In 1976, Sam Walton started VPI
as an opportunity for Associates to creatively
showcase their ability to promote items
they thought could be top-sellers. Today,
Associates choose the VPI item, order it,
design an eye-catching display, conduct
promotional activities and track and report
sales progress. Awards and praise are given
to both local and regional winners of
the contest.
Shoppers see the
results of the VPI
contest in every
Wal-Mart store
around the world
whenever they spot
the “My Super
Item” sign bearing
the Associate’s
photograph.
Five years ago, Tom Coughlin, President
of the Wal-Mart Stores Division, launched
one of the most successful VPI programs
ever when he chose Duck Tape™ as his
item and created a comprehensive system
of promotions to help sell it.
Store managers across the country filled
giant, 10- to 20-foot-tall display cases with
Duck Tape,™ and one Associate even used
a Volkswagen Beetle as a creative display.
Store managers also created enthusiasm for
the product outside of the stores by holding
contests to reveal the “Most Imaginative
Uses of Duck Tape.™” The national contest
was won by The Kansas City Zoo, which
used Duck Tape™ to keep a baby kangaroo
in its mother’s pouch.
In the end, sales of Duck Tape™
quadrupled over the previous year.
And that’s the spirit of the VPI contest:
finding creative ways to turn products
with potential into big sellers.
From global sourcing to the VPI contest,
these associate-driven techniques are simply
part of a day in the merchant-centered
life of Wal-Mart.