Walmart 2013 Annual Report Download - page 7

Walmart 2013 Annual Report || 5
Everyday low prices
on a broad assortment,
anytime, anywhere
In fiscal 2013, Walmart U.S. delivered a strong 1.8 percent comp increase, or
an additional $4.7 billion in comp store sales from last year. Net sales rose to
$274.5 billion, a 3.9 percent increase, and operating income grew by 5.4 percent to
$21.5 billion. We are driving growth and meeting our customers’ needs by oering
lower prices on a broad assortment of relevant merchandise.
Leveraging a winning formula. Everyday Low Price (EDLP) is the cornerstone of our
strategy, and our price focus has never been stronger. Today’s consumer seeks the
convenience of one-stop shopping that we oer. From grocery and entertainment
to sporting goods and crafts, we provide the deep assortment that our customers
appreciate. Our price investments across a broad assortment allow us to deliver a
lower-priced market basket. Through Walmart’s localized and national market basket
media campaigns, we show customers market by market that we are the low price
leader on baskets of merchandise.
Fortifying our low-cost culture. Through our Everyday Low Cost (EDLC) focus,
Walmart is constantly fueling the productivity loop by leveraging expenses so that
we can lower prices. We work closely with suppliers to obtain the best price for the
merchandise customers want. And, we committed to source an additional $50 billion
of U.S. products over the next 10 years. We also drive innovation across our supply
chain and store operations to reduce cost. Productivity initiatives, including One-Touch
and MyGuide, help our stores manage expenses, while continuing to provide good
customer service.
Engaged associates drive customer satisfaction. Sam Walton used to say, “The
greatest measure of our success is how well we please the customer, our boss.” Our
associates are dedicated to executing our core strategy of managing expenses so we
can invest in lower prices for our customers. Associate engagement scores are at an
all-time high. We continue to promote associates and during scal 2013, we provided
a record $1.5 billion incentive payout to eld associates. This year, we began a new
commitment to hire 100,000 honorably discharged U.S. veterans over the next ve
years, which will further strengthen our associate team.
Integrated oerings between e-commerce and stores. With more than 4,000
stores, unmatched logistical eciency and innovative e-commerce solutions, we
oer millions of items to about 130 million weekly shoppers, with convenient and
exible delivery options. To enhance our customers’ experience, we developed a
new walmart.com search engine and delivered mobile solutions to help customers
plan their shopping trips, manage their budgets and find merchandise more
efficiently. Walmart offers a seamless shopping experience, both in our stores
and online, to provide customers with merchandise anytime, anywhere.
Disciplined growth, diverse formats. We are continuing to grow both through
comp store sales and new stores, including supercenters and small formats. Our
enhanced focus on capital discipline allows us to reduce our cost per square foot
on new construction, as we drive productivity into design and construction
processes. We plan to add between 15 and 17 million square feet of retail space
this year, representing between 220 and 240 units.