Walmart 2011 Annual Report Download - page 4

2 Walmart 2011 Annual Report
These results demonstrate the strength of our underlying business and our
dedication to delivering shareholder value. In the coming year, I’m optimistic that
Walmart will improve where we need to and continue to build momentum where
we’re already succeeding. Our talented leadership team is fully aligned on executing
plans to support our nancial priorities of growth, leverage and returns.
Business segments. We were simply not satised with the net sales results in
Walmart U.S. last year. The team is implementing an aggressive plan to reinforce our
commitment to EDLP and to oer a broad merchandise assortment and presentation
that’s even more relevant to customers. My top priority this year is to work with
Bill Simon, CEO of Walmart U.S., and his team to achieve positive comparable store
sales. At the same time, there’s a tremendous opportunity to grow in the United
States through supercenters and new formats, such as Walmart Express™, in urban
and rural markets.
Under Doug McMillon, CEO of Walmart International, our international segment
continued to be a growth engine last year – generating a 12 percent net sales increase
and adding approximately 8 percent more selling space through 458 net new units.
Walmart International leveraged expenses on a constant currency basis this past
year, and we expect improving returns in the years ahead. We are pleased with
the progress of the Massmart transaction in South Africa and continue to work
on finalizing our acquisition of the Netto stores in the U.K. Our international
leadership teams are accelerating organic growth in emerging markets, including
Brazil, China, India and Mexico.
I am very pleased with Sam’s Club’s performance and the contributions they’re making
to shareholder value. Brian Cornell, CEO of Sam’s Club®, and his team grew sales
3.5 percent, and we expect continued sales momentum this year. Sam’s top priority
for this year is attracting new members through improved member experiences.
Best-positioned retailer. There is no doubt that Walmart is the best-positioned
global retailer to address the needs of customers around the world. Our customers
remain pressured, particularly in mature markets, about job security and personal
nances. In emerging markets, the economic recovery is stronger and fueling a
growing middle class. All of this points to the incredible opportunity we have with
the Next Generation Walmart and our mission of saving people money so they can
live better.
At Walmart, we have so many great strengths to leverage throughout our company.
Our new Global Business Processes team is developing and sharing improved
processes, such as workforce productivity, across our business segments. Our Global
Customer Insight Group will help drive growth by deepening our understanding of
consumer trends and creating new analytical tools. I’m also pleased with the progress
we’re making in developing the best talent in each market. Recruiting, developing
and retaining future leaders is vital to Walmart’s success, and we have a special
emphasis on women leaders. This is important because, globally, women represent
50 percent of the available talent and, according to an external study, directly inuence
over $20 trillion in annual consumer spending.
Sales by segment
(dollars in billions)
(scal year ended January 31, 2011)
Walmart U.S. $260
Walmart International $109
Sam’s Club $ 49
Walmart U.S. 3,804
Walmart International 4,557
Sam’s Club 609
Units by segment
(as of January 31, 2011)