Walmart 2014 Annual Report Download - page 9

Serving customers and
delivering savings every day
In scal 2014, Walmart U.S. attracted nearly 140 million weekly shoppers to our stores
and delivered net sales of more than $279 billion, an increase of $5 billion, or 1.8 percent,
from last year. Our focus on cost discipline helped drive 4 percent operating income
growth, more than twice the rate of sales, despite a 0.6 percent decline in comp sales.
Focused on customer needs. Customers choose Walmart for our broad assortment,
including national brands and locally relevant merchandise, at everyday low prices (EDLP).
It’s our winning formula and results in continued market share gains in key categories,
such as food, consumables, over-the-counter and apparel. With our merchant mindset,
we partner with suppliers to increase product innovation and bring exciting new brands
to our stores, such as Russell, Avia and Calphalon. We also work hard to improve quality
and execution, making great strides in areas such as produce and meat. And, our price
investments are driving sales by providing a lower-priced basket relative to the market
and building customers’ trust in our EDLP promise.
In order to invest in price, we focus on everyday low cost (EDLC). Advancements in
logistics and store operations continue to reduce costs and improve productivity. For
instance, optimized transportation routes and distribution center mechanization are
driving supply chain eciencies. Greater exibility at the store front-end, such as self-
checkouts, is helping productivity and resonating with our customers. We believe we
can drive cost savings by sourcing closer to the point of consumption. We made bold
commitments to increase purchases of U.S.-made products by an additional $250 billion
over the next 10 years.
Our 1.2 million associates are essential to a customer-centric experience. Advancement
opportunities abound for Walmart associates who are passionate about serving customers.
Last year, we promoted over 170,000 associates and experienced more part-time associates
accepting full-time roles, building long-term careers with Walmart. We also added over
30,000 honorably discharged veterans to our team. We’re strengthening career develop-
ment pathways by expanding training to foster continued, strong associate engagement.
Positioned to win at the convergence of digital and physical. Walmart is redening
the next generation of retail growth and is the best-positioned retailer to win at the
convergence of digital and physical retail. In fiscal 2015, we’ll continue to grow our
multi-format portfolio. Our core supercenter eet serves the stock-up trip and accounts for
the majority of our market share leadership. We’re accelerating the rollout of Neighborhood
Markets to serve the quick-trip needs. And, our expanded pilot of Walmart Express focuses
on the rural quick-trip. Neighborhood Markets and Express deliver convenience and
customer access to fresh foods, pharmacy and fuel. Overall, we’ll add between 21 and
23 million retail square feet, representing between 385 and 415 units in scal 2015.
We’ll also connect Walmart’s physical assets to the broad assortment that is available
through nearby stores and online, delivering anytime access to our brand. We’re testing
grocery delivery in several markets and also piloting an easy pickup option for online
grocery and general merchandise. Innovations such as these expand our reach to more
customers on their terms.
Walmart 2014 Annual Report 7
“ We’re oering
customers con-
venient digital and
physical access to
Walmart’s broad
merchandise
assortment and
investing in price
leadership to
provide even
greater value.”
Bill Simon
President and CEO
Walmart U.S.