Business

Read Walmart CEO Doug McMillon’s 2017 Letter to Shareholders

The following letter from Walmart CEO Doug McMillon was taken from our 2017 Annual Report, which was released today. Read the report.

Dear shareholders, associates and customers:

As I sit down to write this year’s letter, I’m feeling proud of the progress we’re making at Walmart and, most specifically, the passion and hard work exhibited by our associates. I’m encouraged by the way we’re moving with greater speed to better serve customers.

Our business is getting stronger. In the U.S., we’ve delivered positive comp store sales for ten consecutive quarters and we’re hearing from our customers that their experience continues to improve. Sam’s Club comp sales improved throughout the year and members are increasingly using our digital tools like Scan & Go and Club Pickup. Outside the U.S., 10 of our 11 markets posted positive comp sales this past year. Across our business segments, e-commerce growth is accelerating. Our strategy to serve customers through e-commerce and our stores in a seamless way is gaining traction. The momentum we’re seeing is real and I’m excited about what the future holds.

We’re clearly living in a time of transformative change. The world is moving faster and the magnitude of the changes, and their influence on business, seem larger than I can remember. In retail, the things made possible by technology are fundamentally transforming this industry. These changes are creating compelling ways for customers to save time and gain easy access to products and services they didn’t have before. At Walmart, we’re harnessing the power of technology and the investments in our associates to create new ways of serving customers and provide associates with more opportunities to grow their careers.

We’ve been preparing ourselves to take advantage of the opportunities presented and we have four objectives that we’re focused on this year. First, we want to make every day easier for busy families. Customers are time-crunched, so we want their shopping experience with us to be fast and easy — truly seamless — in all the ways they want to shop: in stores, on their mobile device, or through pickup and delivery. I’m excited by many of our recent initiatives — like the free 2-day shipping offer with a $35 minimum order from Walmart.com, the expansion of online grocery around the world, and Sam’s Club’s launch of Scan & Go across the U.S. — because of the convenience these initiatives provide. The strategic acquisitions of Jet, ShoeBuy, Moosejaw and ModCloth, as well as the alliance with JD.com in China, provide customers with a broader assortment as well as more ways to save time and money. It’s truly been a significant year of progress on this front.

Our second key objective is to change the way we work. We’re focused on becoming more of a digital enterprise. We’re working to increase productivity with more efficient internal processes and creating more real-time information at our fingertips, supported by more advanced analytics. We’re providing in-store associates with the tools they need, like apps and tablets, to make it easier to gain insight into our performance. Our goal is to increase our speed, effectiveness for customers and productivity throughout the business. We’re also working to strengthen the performance mindset of our culture and fight bureaucracy that can plague large companies. A strong and effective culture is foundational to success and we’re shaping ours to drive performance and create even more opportunity for our diverse group of associates in an inclusive work environment.

Third, we will deliver results and operate with discipline. We were founded on an everyday low-cost mentality but we think we have opportunities to work in new ways and find a path to a lower cost base. This is vital for our future. We’ll be smart with how we allocate capital to drive long-term value for our shareholders. We’re after efficient growth. We will focus on growing more through e-commerce and comp sales in our current store fleet and rely less on new store growth in the U.S. We’ll also continually look at our portfolio to make sure we’re positioned to win. We’ll invest in our core business with store remodels, technology and customer initiatives like online grocery and pickup, while at the same time being open to divest non-core assets if it’s in our best interest.

The fourth objective is to be the most trusted retailer. During this time of change, customers are watching the companies they spend their time and money with more closely than ever. The way we earn their trust is through our associates doing the right thing every day — being creative, curious, ethical, service oriented and embodying our purpose of making lives better for others. If everyone could see inside the company I’ve come to love, they would feel even better about the company.

We’re doing things people would expect from Walmart: focusing on lowering prices — not by cutting corners, but by being better at delivering great items more efficiently than our competitors; and constantly innovating to save customers time as well as money. We’re also doing things that might surprise some people. We’ve made significant investments in our associates, providing the career opportunities they deserve and skills necessary to be successful at Walmart or wherever their career takes them. Over the last decade, we’ve become one of the most environmentally sustainable retailers (and companies) in the world and we’re raising the bar even higher. We’re investing in making our supply chain safer and more transparent so customers can be confident that the products they purchase are sourced the right way. And, we have embraced the journey towards the concept of “shared value” as espoused by Dr. Michael Porter of Harvard Business School, which challenges us to create a business model that is not just good for shareholders but better for everyone: customers, associates, suppliers, communities and society in general.

We’ve worked hard over the years to earn the trust of those we serve and do business with around the world. By no means am I saying Walmart is perfect. We’ll make honest mistakes along the way, but we won’t let up until we get it right. Our purpose is simple: we save people money so they can live better. We take both aspects of our purpose seriously.

We want to thank you for believing in us…for investing in our future. We are a company of the future. As I stated earlier, we’re operating from a strong foundation built by those before us and taking action aimed at strengthening our business this year and beyond. We’ll continue to strengthen our stores around the world, we’ll continue to build our e-commerce and digital capabilities, and we’ll put them together in a way that saves customers time and money. And as they choose to shop with us, we’ll be doing things behind the scenes to create shared value for all so they are confident that their trust in us is well-placed.

Honored to serve,


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Innovation

More Than a Store: The Tech Bringing You Even More Items

I can’t count how many times I’ve started to shop on my phone or in an app, then moved over to my laptop so I could see everything better.

Shopping on a phone is super convenient, but sometimes that small screen doesn’t give me the in-depth detail I need for certain types of purchases.

Turns out, a lot of customers do that, too. “Our electronics department associates noticed that customers were using store display laptops and tablets to purchase from Walmart.com,” Nicole Clendeninn, a senior project manager of merchant technology at Walmart Labs, recalled. Just like me, they wanted to use something bigger than a phone screen to shop. Others used the store displays because they didn’t have a smart device with them. From these simple observations, came an even simpler idea: Walmart.com in-store kiosks.

The solution launched in just five stores almost a year ago and has since grown to 50 locations. Each of these stores has 1-2 kiosks, usually near customer service or the electronics department. The kiosks allow customers to shop all products on Walmart.com (minus Marketplace items), pay how they want – even cash, if they like – and ship it to store or their home.

Nicole’s team didn’t stop there. They used this same technology to enable associates to help customers make online purchases from anywhere in the store. Associates already use a handheld device for their daily tasks, so Nicole’s team added a new app that allows them to assist customers with Walmart.com merchandise on the spot.

Let’s say you’re looking for a laptop. With this new app, an associate can pull up reviews on his or her handheld device so you can see which one has the best reviews. Once you’ve made your choice, that associate can check you out right there or take you to a kiosk to let you pay without a card. Same thing goes if you can’t find what you’re looking for in the store – they can help you find it online, show you the reviews and help you check out.

Not every store will get a kiosk, but the team is working to get the associate-facing app on all their handheld devices.

Watch this video to see how the kiosk came to life.

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Business

These Back-to-School Tools Add Up to Easier Shopping

Going back to school with confidence is as easy as 1, 2, 3 … 4.

Whether you’re shopping for a kindergartner or a college student, Walmart is making it easier than ever to get all the supplies you need in-store and online with a variety of new tools and products.

The best part: You don’t have to sacrifice style for convenience or saving money. Around 25% of our school supply assortment is new this year, and you’ll find these on-trend items offered at our everyday low prices.

Study the graphic below on some of the ways we can help you ace back-to-school shopping.


*Free two-day shipping is available on orders over $35 without a membership fee.

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Community

An Amazing Way to Add STEAM to Girls’ Career Dreams

It might just be that I am a mom of three children (ages 8, 4 and 2) who is always looking for fun yet affordable things to do, but I am noticing more and more hands-on learning opportunities such as “maker spaces” popping up in schools and institutions throughout the country.

Northwest Arkansas is no different. It's exciting to see so many STEAM – an acronym for science, technology, engineering, art and mathematics – concepts embodied in current popular culture, inspiring confidence in young women in particular.

Learning becomes deeper and longer lasting when it involves creativity, discovery and community. That’s why I’m so excited to help support Walmart and the Walmart Foundation in their giving efforts. Through my job as a senior grant manager for the Walmart Foundation, I get to be part of helping organizations like the Scott Family Amazeum, who are working to break down the intimidation factors of STEAM in hopes of inspiring the next generation of engineers, coders, scientists and beyond.

Just this last month, at the Walmart NW Arkansas Championship, Proctor & Gamble and Walmart joined the Amazeum and other local organizations to host the first Always Live #LikeAGirl STEAM Day for 100 young girls from the region, who were encouraged to explore STEAM careers.

But let me share a little bit more about the impact STEAM education is having on my own daughter, Kenzy. This past spring, like many children in Northwest Arkansas, she and her 2nd grade class attended an Amazeum Unfield Trip, which is a program supported by a $1 million grant over three years from the Walmart Foundation to fund admission for students in Benton and Washington counties.

This wasn’t your traditional school museum visit, but rather a hands-on learning experience for both the students and teachers, inspiring curiosity and discovery at every turn. Kenzy loved exploring the world of water at the Nature Valley Water Amazements, but being able to create something uniquely her own in the 3M Tinkering Hub renewed her interest in her school’s afterschool coding club. Who knows? It might have even ignited a lifelong interest in a STEAM career.

Innovation is all around us and sometimes it takes us slowing down to see it or be inspired by it. Watching my kids discover has encouraged me to incorporate more STEAM into my own lifelong learning. STEAM education develops life skills like logical reasoning, collaboration, creativity and communication while building character traits like confidence, self-esteem, imagination, persistence and motivation. These are the very life skills and character traits I am seeing my daughter develop through her interactions with STEAM education.

Without creativity, the world would be a lot less interesting, and without the curiosity to discover, we wouldn’t push ourselves a little more or strive for the impossible. In a world being transformed by innovation, I’m grateful for my kids who are a constant reminder for me to not be afraid to embrace my own creativity, be a little more willing to go down the journey of discovery but most importantly to foster community with those around me.

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Life

#IShannanYou: The Associate Love Story That Has Netflix Viewers Swooning

It’s a classic love story: Boy meets girl, falls madly in love and proposes to her in front of millions on one of 2018’s most popular Netflix shows.

Okay, so that’s probably not how it happens for most of us. But, for William and Shannan Mahnken, it’s all part of their real-life love story that started five years ago after they met at a Walmart assistant store manager training session in Woodstock, Georgia.

The Netflix reality show reboot, “Queer Eye,” has taken pop culture by storm. The show’s “Fab Five” – Jonathan, Karamo, Tan, Antoni and Bobby – have won over viewers’ hearts across America by taking the show beyond its basic premise and diving into conversations about identity and self-confidence that inspire viewers and participants alike.

Before Shannan submitted William to be one of the makeover contestants on the show’s second season, the grocery department manager was a shy aspiring actor and screenwriter who named ’90s sitcom character Frasier Crane as his style icon. In his own words, “I was hiding behind my beard and all that hair.”

It’s not always easy to embrace your full self or wear your heart on your sleeve, but despite William’s reserved personality, he had a great time on set. “The guys are all so great,” William said. “They just walk up to you like they’ve been friends with you forever. I felt so comfortable.”

Bonding with the Fab Five even helped William feel comfortable enough to seek their help in planning his proposal to Shannan. He set to work with Karamo, the “Queer Eye” culture consultant, to craft a grand proposal that would sweep her off her feet.

“I was trying to think of a word that meant more than love,” said William, “and eventually I realized that there was no single word or phrase that could describe how I feel about Shannan. I decided that the only way I could describe it was with her name.”

That’s right. William invented a new way to say, “I love you” – and he did it using his future bride’s name. “I Shannan you.” If you haven’t seen the episode yet, I highly suggest grabbing a box of tissues beforehand.

Last month, William and Shannan finally tied the knot in a small sunrise ceremony on the beaches of Amelia Island in Florida. Since the show aired, the lovebirds say that although married life is a little different, the couple have stayed pretty true to who they are. They now work together as department managers at the same Walmart store in Cornelia, Georgia, and William continues to create short films and act when he can.

So, what was the biggest lesson he learned on the show?

“Confidence is a big one,” he said. “I learned how to open up to people. I don’t feel hidden anymore; I feel like I can open up to people about who I am. If I feel myself reverting back into that old pattern, I remember something that Tan said to me: ‘You’re not doing this for yourself, you’re doing it for her – the person you love.’ I think about that and it inspires me to be the best version of myself.”

Photos courtesy of Netflix.

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