Walmart 2009 Annual Report Download - page 11

Brian C. Cornell
Executive Vice President,
President and Chief Executive O cer,
Sam’s Club Division
The warehouse club is more relevant today than ever. Whether it’s a Business or
Advantage member, the Sam’s Club message is about the compelling value on quality
items that membership o ers. The numbers help tell the story.
In a small business, every penny counts, especially in today’s economy. We show small
business members that by purchasing products at Sam’s Club, they save money and
increase their own business’ pro tability. During National Small Business Week, for example,
thousands of small business owners learned through invoice comparisons that they could
save up to thousands of dollars annually by purchasing at Sam’s Club.
Advantage members also are responding to learning more about the savings that
Sam’s Club o ers through various events in the clubs. The membership team commissioned
an independent third-party consultancy to validate the savings at Sam’s Club versus
traditional retail outlets. The study showed an overall average savings of about 38 percent
on the categories surveyed. Members now receive an annual “savings summary” that tracks
their savings on speci c categories of purchases during the year, as well as highlighting
additional opportunities to save in categories the member may not currently shop.
These types of initiatives helped strengthen Sam’s membership programs last year.
Signing up new members and retaining existing members remain priorities for this year.
Beyond demonstrating the value of the membership itself, Sam’s Club continues
to focus on enhancing the quality of the merchandise and the shopping experience.
Uncompromising product quality and newness are key dimensions of delivering the
Sam’s Club experience.
We continue working directly with suppliers to develop products that provide a unique
and compelling value for members. In the fresh category, for example, only a small per-
centage of all fruit grown meets our high expectations. Sam’s Club merchandising teams
are working with suppliers to ensure they deliver products that take steps toward
sustainability, such as Fair Trade Certi ed™ bananas and Fair Trade Certi ed™ wine.
Sam’s also remains focused on changing packaging to make certain products more
relevant to Advantage members’ needs. For example, repackaging three bottles of ketchup
together in a size that is easier to pick up, has longer shelf life, and  ts in refrigerator doors
better than one large bottle, resulted in a signi cant increase in ketchup sales.
Samsclub.com is an integral part of our growth strategy. We continue to add features to
the site that provide our members with information that makes it even easier and more
enjoyable to shop both online and in our clubs.
Beyond the merchandise quality and value, the strong execution by our associates
continues to enhance the member experience in our clubs. Sam’s Club’s associates’
commitment to service and building relationships with our members is key to our
continued success.
Net Sales $46.9 billion
Operating Income $ 1.6 billion
Number of Clubs 602*
*As of 1/31/09
Enhanced Member Experience: Better
lighting and a more member-friendly
layout are enhancing the shopping
experience for Sam’s Club members.
Membership Value: Sam’s Club
continues to find innovative ways
and events to communicate the
value of membership.
Wal-Mart 2009 Annual Report 9
B MEMBERSHIP.