Walmart 2012 Annual Report Download - page 6

4 Walmart 2012 Annual Report
Sam’s Club continues to drive sales momentum, increasing
comp sales 8.4 percent (which includes 3.4 percent of fuel)
in fiscal 2012. We are pleased with the consistency of opera-
tions across the U.S. clubs, and merchandise quality and value
continue to get better. Sam’s also made real progress in
growing the membership base, and that remains a key
goal this year.
There is no doubt Walmart is the best-positioned global retailer.
We believe that we have all the pieces in place to build on our
success and deliver value for our customers and shareholders
again this year. We continue to strengthen our next generation
Walmart efforts, investing in people, technology, innovation
and infrastructure. It is rooted in our culture to stay out in front
of change. The world moves more quickly each day, and we
aim to be at the forefront of bringing about change in retail,
both in our stores and through e-commerce.
Five key strategies are central to our future: 1) Developing
our people; 2) Driving the productivity loop; 3) Winning in
Global eCommerce; 4) Reinvigorating our customer-focused
culture; and 5) Leading on social and environmental issues.
Developing our people
Nothing is more
important to delivering
on our mission than our
people. We have the best
talent in global retailing,
both at the leadership
level and deeper in the
organization. We are
extremely focused on
developing existing
talent through programs
like our Business Leadership Series, the Walton Institute and
Merchant Development. We are also recruiting exceptional new
talent where we need it. One area that I am asking every leader
and manager to focus on is appreciating and listening to our
front-line associates. More than anyone in our company, our store
and club associates take care of our customers and members,
and they make incredible contributions to our success.
I’m pleased with the progress that we’ve already made on
diversity and inclusion, and especially with our global women’s
strategy. We are championing opportunities for women to
advance in Walmart, and to develop women at all levels
throughout the company.
Driving the
productivity loop
Delivering everyday low
prices is premised on
everyday low cost. There
is no doubt that the pro-
ductivity loop is back in
Walmart’s DNA. Over the
past two years, I have
personally talked a lot
about the productivity loop and its importance. We are very
proud that we have leveraged operating expenses for two
consecutive years. Walmart is operating for less, so we can sell
for less and drive increased sales. And we are just getting started.
Last October, we committed to reducing operating expenses as
a percentage of sales by at least 100 basis points over five years.
To achieve that, we are bringing even more discipline and focus
to being as productive and efficient as possible. Just as impor-
tant, we are rekindling the spirit of innovation that Walmart has
been known for throughout our history. We want to drive full
global leverage throughout such areas as information systems,
sourcing, business processes and shared services.
Winning in Global eCommerce
E-commerce will become even more important to serving
customers in the coming years. In the U.S. and the U.K., we
operate successful online businesses, and our Brazil and
Canada e-commerce
businesses are growing
rapidly. With a trusted
brand operating more
than 10,000 stores and
serving 200 million
customers weekly,
Walmart has the assets
to build on and deliver a
multichannel experience