Walmart 2014 Annual Report Download - page 10

Positioning our portfolio for
continued growth
In scal 2014, Walmart International’s net sales, excluding the impact of currency exchange
rate uctuations and acquisitions, increased 4.6 percent to $140.9 billion. We added
12.5 million square feet and 324 stores, bringing our total portfolio to more than
6,100 stores. We also grew or maintained market share in most countries, despite a
challenging macroeconomic environment where household incomes were stretched
and competition remained high.
Targeting the most promising opportunities. International will continue to be a
growth vehicle for Walmart. We’re focused on driving comp sales in all markets and
investing in relevant formats and channels, including e-commerce and mobile. During
the year, we took steps to strengthen our position in Brazil, Chile, China and Mexico
and expect these actions to help us deliver our nancial priorities.
We’re excited about opportunities for growth in e-commerce. Our investments in
infrastructure and talent are accelerating International’s digital expansion and providing
options for customers with diverse shopping habits. For example, Asda’s rapidly growing
online grocery business exemplies the physical-digital convergence, creating a customer
experience that only Walmart can deliver. Brazil e-commerce sales grew at nearly twice
the market rate last year, and Yihaodian is one of China’s fastest-growing e-commerce
sites, offering customers both grocery and general merchandise. In addition, we’re
increasing our investments in Mexico and Canada to drive growth.
Customers around the world still want and need value. We’ll deliver EDLP for them by
continuing to invest in price. EDLP builds trust with customers while saving them money,
whether it’s “Worry Free” pricing in China or the “Asda Price Guarantee” in the U.K. Our
objective is to fund this investment by being the lowest-cost operator in every market.
We continue to expand our capabilities to buy, operate and sell for less. In partnership
with our global leverage teams, we’re driving innovative technology and process
improvements, all with a lens on greater customer relevance.
Taking corporate responsibility to a higher level. At the core of International are
the outstanding associates, who are dedicated to serving our customers. We continue
to recruit some of the best global talent in retail to complement our current teams, and
we’re investing in training and development of current associates. For example, in the
last year, we ramped up our eorts with the merchant leadership academy to provide
advanced training in merchandising strategy and execution.
As a global company, we have responsibilities to the countries in which we operate,
and we earn trust through our commitment to compliance, social and environmental
issues. We remain vigilant in our focus to have the most compliant processes and
capabilities, to support charities and to lead on environmental sustainability to improve
the communities that we serve.
International
8 Walmart 2014 Annual Report
“ To drive sales and
build long-term
value, we’re
focused on price
leadership and
operational
excellence while
investing in the
formats and
channels that
customers want.”
David Cheesewright
President and CEO
Walmart International