Walmart 2015 Annual Report Download - page 3

12015 Annual Report
Our framework for growth
What is the strategic plan to drive
Walmart’s continued growth in
a changing retail environment
around the world?
Given the breadth of our business, strategic
clarity is really important. We’re thinking
about the future through the lens of the
customer. Customers are channel agnostic
– shopping in stores, online or with their
phones is more seamless than it used to
be. We’re thinking the same way. Walmart
possesses unique assets and capabilities
to serve customers with our stores, clubs,
global supply chain, data and great associ-
ates. We want to enable customers to find
what they want, at a value, in a convenient,
enjoyable way, regardless of how they
shop. Our customer proposition is focused
on four areas – price, access, assortment
and experience. Each dimension is
important, and we take a holistic view
to how they integrate with each other.
Our plan provides a framework to ignite,
energize and accelerate change, as we
make decisions and investments.
How does Walmart’s everyday low
price (EDLP) philosophy translate
across markets globally?
We serve value conscious customers,
regardless of household income, all over
the world. So, we’ll always be aggressive on
price. EDLP builds customer trust, both in
stores and online. That’s especially important
in a digital era where there’s greater price
transparency. To deliver price leadership, we
continue to focus on driving everyday low
cost (EDLC) through improvements in supply
chain, processes and other efficiencies.
How are you providing greater
access for customers to shop Walmart?
Through our more than 11,000 stores,
websites and mobile apps, customers can
access Walmart in more ways than ever
before. It’s vital to have relevant formats
in each market we serve. But the future of
retail is not just in-store or online – it’s put-
ting the two together in new ways. I’m
excited that we’re leaders in integrating
digital and physical retail in a seamless
fashion. We’ll continue to test and learn
as we explore options for convenient
merchandise pickup or delivery to save
customers’ time.
How are you expanding
the assortment with your
e-commerce oering?
Customers want more merchandise
choices, and they expect to find almost
anything when shopping Walmart. In
our stores, we’re focused on providing
quality merchandise, desirable national
brands and great private brand options.
On the e-commerce front, we provide
those same things through an expanded
assortment of approximately 8 million
items on walmart.com in the U.S.
Interestingly, 75 percent of walmart.com
sales come from non-store inventory,
thus providing incremental sales growth
beyond our stores. And, this is a global
effort. In Brazil, for example, our online
assortment, including from marketplace
partners, grew 10-fold last year.
What are your most important
objectives to improve customer
experience, both in stores and online?
Retail has always been a people business,
and we win when associates exceed
customer expectations. That’s why we’re
investing in higher wages and increased
training and development for our U.S.
associates. We’ll also equip them with
information and technology to facilitate
great customer service. We’re focused
on running great stores and websites by
improving in-stock and driving a faster
checkout, both online and in stores. I’m
excited about the progress we’ll make for
customers this year.
We’re investing to win in retail by
providing our customers what they
want, when they want it, at
unrivaled prices.
Doug McMillon
President and Chief Executive Ocer
Wal-Mart Stores, Inc.