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Walmart 2012 Annual Report 7
Walmart U.S. achieved positive comparable store sales for scal 2012, having
posted an increase in customer trac for the fourth quarter. Net sales
surpassed $264 billion, increasing 1.5 percent, while operating income grew
to $20.4 billion, a 2.2 percent increase from the prior year. We improved our
performance by aligning our strategy with the needs of today’s customer
and by operating more eciently. The expanded merchandise assortment
and improved in-stock levels, coupled with strong price leadership and
service from our associates, continues to resonate with customers.
A broader assortment. Customers appreciate the
opportunity to rely on Walmart for a one-stop
shopping experience, so we added back more than
10,000 products across hundreds of merchandise
categories during the past year. We work with
suppliers to be the first to offer new innovative
products and continue to fine-tune our offerings.
We offer the right mix of national brands, private
brands and opening price point products. We also
improved in-stock levels, so customers can count
on Walmart more than ever.
Delivering Everyday Low Price (EDLP). We
reinvigorated our fundamental price promise:
provide low prices day-in and day-out on the
broadest assortment. Our price message, backed by
the strongest ad match policy in the industry, ensures
that we are driving price separation with competitors.
The certainty of great values throughout the store
has been fundamental to Walmart for 50 years.
Fulfilling that brand promise inspires customer trust
and loyalty. This February, we kicked off a two-year,
$2 billion investment, funded by expense reductions
and productivity initiatives, to further lower prices
for customers.
A more ecient organization. EDLP is the result
of our everyday low cost (EDLC) philosophy.
We lower costs by reducing expenses, increasing
productivity and leveraging technology to improve
efficiency throughout our supply chain and our
operations. This year, we are accelerating and
adding many efficiency measures, as we invest
the savings to further lower prices.
Formats and channels that serve every need.
We continue to invest in growth through a variety of
channels – our core supercenters, smaller formats
such as Neighborhood Market and Walmart Express,
and eCommerce. Our online business continues to
grow, driven by strong sales in Site to Store and
Pick Up Today, which provide shopping alternatives
to Walmart customers.
Our Foundation:
Humble beginnings with store 1
Using their family home as collateral, Sam and Helen Walton opened
the rst Walmart in Rogers, Ark. in 1962. The store was just 18,000
square feet of selling space, and had clothing racks made of plumbing
pipes. Store 1 was modest – but customers loved the great prices
and the wide assortment.