Walmart moving fast

June 23rd, 2014

BENTONVILLE, Ark. – Doug McMillon, at his first annual meeting as Walmart’s chief executive officer, told shareholders and associates that the company will succeed by embracing new technologies and new store formats, while remaining true to its established values and its mission. "I am excited about our future," McMillon said. "There are so many new ways emerging to serve customers. Technology, data and information are opening new doors for us to lead through. Our purpose of saving people money will always be relevant, but we’ll do it in new ways."

McMillon said Walmart’s plan for the future involves being customer driven, investing in its people, and being at the forefront of innovation and technology. McMillon detailed a possible future for Walmart in which the company continues to add to its store base of 11,000 outlets that provide "access and convenience" for consumers who want a product immediately. "Great stores and clubs with great associates are Walmart’s competitive advantage," McMillon said, adding that "we’ll keep adding services and pickup points to our stores to become even more ­convenient." Walmart will also add collection points in convenient locations — it is testing them at tube (subway) stations in London — where consumers can pick up products they’ve purchased via the retailer’s website.

The company is also testing grocery delivery services, and intends to expand its traditional e-commerce capabilities."To do all of this, we need to move — fast," McMillon said. "That’s why we’re piloting so many ideas around the world. That’s why we formed @WalmartLabs, hired more than 2,500 engineers, programmers and data scientists, and acquired 14 companies in the last three years. We recently became interested in a product search firm called Adchemy and bought it less than three months later. We focused on a wireless services provider named Simplexity and completed a deal seven weeks later. "We can move fast. Walmart is picking up the pace of change to serve the customer better. "We’re also building out our global fulfillment and replenishment network so that we can get even closer to our customers. We’re rolling out a new Global Technology Platform to provide a better customer experience on all devices."

McMillon also stressed the importance of Walmart’s people, and said he is proud of the jobs and opportunities the company has to offer. McMillon himself started as an hourly associate in one of Walmart’s distribution centers, chairman Rob Walton pointed out at the meeting, adding: "He is truly an associate CEO."

Walmart U.S. president and CEO Bill Simon also emphasized the retailer’s commitment to its people. "Last year we launched scheduling changes and access to open shifts to make additional hours more available," he said, adding that since then the company has spent a lot of time listening to employee concerns about schedule choice, job growth and access to opportunity. "We’re redefining what it means to work at Walmart," Simon said, "and we’re going to be even clearer about what it takes for associates to advance. We’ll start here in the U.S. but our goal will be to roll out opportunities like this at stores and clubs around the world. These are going to be meaningful changes that will ultimately benefit our customers, and we’ll have more details later this year."

The shareholder’s meeting, a star-studded event before a crowd of about 14,000, came at the end of Walmart’s Shareholders Week, which includes festivities for thousands of associates. "This is a special week at Walmart," said Susan Chambers, the company’s executive vice president of global people. "We celebrate and thank our 2.2 million associates from around the globe who are always coming up with new and exciting ways to serve our customers."

One of the highlights of the week saw former CEO Lee Scott attending a barbecue and tailgate party for logistics associates. In honor of Scott, who began his Walmart career in the logistics division, the company’s home office logistics administration buildings have been renamed the Lee Scott Logistics Complex.