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Walmart 2012 Annual Report 9
International
Our Foundation:
Taking the rst step in the
global growth journey
Following Sam Walton’s suggestion to consider
expansion into Mexico, company leaders launched
the rst initiative: a joint venture to open a Club
Aurrera (later, Sam’s Club) wholesale membership
store in Mexico City in 1991.
Walmart International is focused on a key objective – driving aggressive
growth, while improving return on investment. Net sales, including currency
and acquisitions, increased 15.2 percent to $125.9 billion for scal 2012.
Operating income was $6.2 billion, increasing 10.8 percent from the prior
year. In scal 2012, we opened a record 612 new stores through organic
growth. Including acquisitions, we added 1,094 stores and 42.2 million
square feet around the world.
For the past three years, we maintained disciplined
growth, with an average square footage increase
of 8.0 percent, excluding acquisitions. We believe
EDLP is the right business model for our customers
in all of our markets, and with a focus on EDLC, we
intend to be the low-cost leader in every market
where we operate.
Meeting local needs is central to our growth.
We align our formats, assortment and service from
our associates with the fastest-growing customer
demographics in each market. We continue to grow
through new stores, comparable store sales and
e-commerce. In high-growth markets, such as Brazil,
China and Mexico, we pursue middle-income
customers who look for quality and value. And in
more mature markets, such as Canada and the U.K. ,
we continue to find ways to expand our customer
base. Walmart International will add between 30 and
33 million square feet of retail space in FY 13.
”Powered by Walmart” is the cornerstone of how
we maximize value by balancing global leverage.
We share best practices across geographies in store
operations, logistics, information technology and
other areas. Working together where it makes us
better allows us to save money, be faster to market
and keeps our associates keenly focused on serving
customers. Leveraging Walmart’s global scale and
expertise allows us to deliver the merchandise our
customers want at the lowest price.
Be rst in e-commerce solutions. We are building
new solutions that strengthen our e-commerce
offerings in developed markets and take advantage
of the explosive growth of online retailing in
emerging markets. ASDA’s online grocery sales
continue to grow in the U.K., and e-commerce
offerings are expanding in Brazil, Canada, China
and Japan.