U.S. Manufacturing

Opening Our Doors – to Open Even Bigger Ones Across America

100 new hires. That’s how many Emilia PC expects to add by the end of this year, all resulting from one step the beauty product manufacturer took roughly 12 months ago: attending Walmart’s Open Call for products that support American jobs.

That’s 100 people who can now choose local employment in De Kalb, Miss., a town of less than 1,000 where Emilia – one of the largest manufacturers of private label and contract health and beauty products in the world – chose to re-shore its merchandise from Israel.

Emilia PC’s decision is the kind of win we’re working hard to help make happen more often in the months ahead. When we pledged to buy an additional $250 billion in products made, assembled, sourced or grown in the U.S. through 2023, we recognized it was bold. But we’re committed to growing U.S. manufacturing and encouraging the creation of American jobs. Supported, in part, by two previously unprecedented events – our Open Call to suppliers and U.S. Manufacturing Summit – we’re on target to reach this goal.

On July 7 and 8, we’re going to make a good thing even better by bringing both of these events together under one roof. We’ll host the “Made in USA” Open Call and U.S. Manufacturing Summit, at the Walmart home office in Bentonville, Ark.

Hundreds of current and potential suppliers from across the country will be face to face with our buyers, pitching their products for the chance to get on shelves at Walmart, Sam’s Club and Walmart.com. Meanwhile, Walmart executives and industry experts will be making valuable connections with suppliers, state representatives and economic development organizations.

Separately, our Open Call and U.S. Manufacturing Summit events sparked countless success stories. Hugh and Nicole Jarratt of Jarratt Industries pitched their plastic taco plates, 1 million of which are now for sale on the shelves of Walmart stores across the country. What began for Luxurien International as an opportunity to sell its contemporary metal bands, camouflage rings and exotic wood jewelry on Walmart.com has grown to include 600 Walmart stores. Luxurien expects to hire an additional 35 employees in 2015 and will break ground on a state-of-the-art production facility near Salt Lake City. And these are just a few from a growing list of examples.

Imagine the possibilities with all of these relationships and opportunities now being hatched at the same time, under one roof. This is how business – and innovation – gets done.    

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Innovation

The Opioid Epidemic Has Changed Safe Disposal of Prescriptions

The opioid epidemic is as serious of a drug crisis as America’s ever seen. It’s so deep-reaching that nearly every community has felt its effects.

And while prescription pain medications are an appropriate treatment option for some, the reality is that unchecked supplies in the public pose a significant health concern. Just as prescription drugs should be prescribed carefully, they must be stored and disposed of carefully.

Providing a means for proper drug disposal is a fundamental way Walmart can help. Today, we announced a new, free, convenient solution for responsible opioid disposal, DisposeRx. It’s a first-of-its-kind solution and I’m so proud of our team and the work they’ve done to bring this simple means of disposal to our patients.

We know the person who was prescribed a prescription opioid medication isn’t always the only one who is at risk for misuse. This innovative option for medication disposal will help keep families and communities healthy, and DisposeRx is one more way we can make a difference.

Here are a few more reasons why we wanted to help with this critical issue.

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U.S. Manufacturing

These Artists are Mixing Up the Cocktail Game

Watching a professional mixologist craft the perfect cocktail can leave you awestruck.

From their performance-style bottle flips as they mix the ingredients to the spectacle of the drink itself, it’s truly a form of art.

The bottle flips take time to master, but creating that perfect cocktail at home is definitely within reach. However, it can be intimidating. While craft cocktails are in vogue right now – especially with millennials – many of them report they don’t know how to make them.

We were approached in the summer of 2016 by Walmart’s mixed drinks buyer, Tammy Patton, who wanted help in creating a new, exciting product that resonated with these customers. “The mixed drinks and bar ingredients category hasn’t seen innovations in a while. It all started with us needing lime and lemon juices, which surprisingly, we didn’t have in that category,” Tammy said.

What we came up with – a selection of mixers and bar ingredients called Cocktail Artist – fills this gap. From the ingredients to the packaging, it stands out. We went straight to the experts – eight award-winning mixologists from across the U.S. – and worked with them to create premium ingredients they would be excited to use. They became our spokespeople for each of the products, with their faces on the bottles of the ingredients they helped make.

Each mixologist honed in on the mix or ingredient he or she was passionate about. They were enthusiastic and took ownership from the get-go – all the way to doing store demos, taking pictures with customers and signing bottles. We went with an Andy Warhol-style concept and the idea of turning the labels into actual pieces of art.

We started with two products, then grew to eight in March of this year. And in 2018, we’ll expand to a total of 15. And with new products, come new bartenders. One of them, Skyy John, better known as Tipsy Bartender, is one of the biggest influencers in this category, with 26 million followers. To keep up with demand at our plant in Cincinnati, we’re proud to be adding jobs to that community. What’s great is that none of our mixes are made with high-fructose corn syrup and at the same time, they’re affordable. You can make some really high-quality cocktails and not break the bank.

“This line has really revitalized the category. The major players in that space are bringing more to the table and innovating. We’re growing a new customer base, and they’re coming back more often,” Tammy said. “We’re really proud we can offer quality products like this to our customers.”

Our goal was to create a craft cocktail movement. I think we’re on our way.

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Business

CEO Doug McMillon's Note to Associates on Tax Savings

Happy New Year! I hope you and your families had a great holiday season. Thank you so much for all your efforts to serve our customers during our busiest time of the year. I know there were many smiling faces on Christmas morning and throughout the season because of you. Thank you for serving them so well and for helping each other to do it as a team.

We’ve got some really good news to share today. As you know, the President and Congress have approved a lower business tax rate. Given these changes, we have an opportunity to accelerate a few pieces of our investment plan. We plan to continue investing in you, in our customers through lower prices, and in our future--especially in technology to help improve your jobs and the experience for our customers.

So, we’re pleased to tell you that we’re raising our starting wage to $11 an hour for Walmart U.S., Sam’s Club, Supply Chain, eCommerce and Home Office hourly associates effective in February.

We’re also providing a one-time bonus to hourly associates that pays a larger amount the longer you’ve been with our company. Associates that don’t benefit from the new starting wage increase are eligible for the bonus and it will range from $200 to $1,000 depending on your length of service. As an associate who’s been with the company more than 25 years, I understand the value of experience and we all appreciate those of you that have helped build this company over the years.

I’m also excited to tell you that we’re making an important change to benefits by expanding our paid leave policy to provide full-time hourly associates with 10 weeks of paid maternity leave and six weeks of paid parental leave. This expanded parental leave also applies to salaried associates and to parents who adopt. We will also contribute $5,000 to the cost of adoption. I recently heard from two associates on this topic—one through an open door note and one at a town hall. Both pointed out how limited our policy was for adoptive parents so we’re happy to be addressing that concern now. Families are a priority to us and connecting with and caring for a new family member is obviously important.

As we look to the future and how we’ll win with customers, we’ll be assessing what additional investments are needed, and we’ll make those decisions with you, our customers, and our shareholders in mind.

Thanks again for everything you do. I’m proud of our progress and we have momentum. Let’s build on that in 2018!

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Life

In Case You Missed It: Our Favorite Stories from 2017

Last year, our news feeds were full of big moments.

In case you missed some of Walmart’s major events, we rounded up our Top 10 favorite stories of 2017 – from the impressive, to the heartbreaking, to the downright adorable.

Our Family Got Bigger and Better
It’s always a happy moment when a family grows. This year, we added exciting companies to our team like ModCloth, Bonobos, Shoes.com and Parcel. We also partnered with tech innovators like August Home, Google, Uber and Lord & Taylor, proving that when we strengthen our business in the right places, our customers win.

A Podcast About Retail (And All Things Related)
These days, you can find a podcast for just about anything. From whales to Wales, from weather patterns to whether the latest movie is any good, you can probably find it all in your favorite podcast app. In May, we launched a podcast of our own called Outside the Box where we brought together thought leaders and innovators of all backgrounds to talk about the ways they’re transforming technology, shopping and everything in between.

Virtual Reality – and a Few Cues From Football – Helped Train Our People
Inspiration can come from surprising places. With the same technology used by some major football teams, we started incorporating virtual reality training into our Academy programs across the country. It’s just one of the many ways Walmart Academies use tech to set up associates for success.

This 5-Year-Old Associate Stole Our Hearts
What do you call a preschooler who does an art project on working at Walmart? Our newest associate! Well, at least for a day. When 5-year-old Will Coffman’s dad shared an adorable picture on Twitter, a local store manager invited him in to help out (and try out the job).

We Made Great Value… an Even Better Value
Premium Ice cream, sustainable coffee and salon-quality hairspray all at everyday low prices? We made it happen. In 2017, we highlighted some private label products that go above and beyond in providing our customers an amazing value. Be sure to check them out, you may be surprised!

This Short Story Revealed a Much Bigger Impact
A lot goes on behind the scenes in this big retail business. Aside from bringing customers their favorite products at a great value, we work to make a difference year-round for people, communities and the environment. This year we had Walmart home office associate Kyle Jones break down the lengthy report for us. He did such a great job we wondered why we never thought of it before!

#MadeInUSA Helped Create Jobs Across the Country
In 2013, we announced a commitment to source an additional $250 billion in products made, assembled or grown in the U.S. From an eyeglass factory in Brooklyn to an inventor’s home factory in Opdyke, Illinois, we took 2017 to highlight suppliers that are creating change for American workers.

Shopping Got a Major Tech Upgrade
The world is navigating a cultural revolution into the digital age, and last year was a big year for tech in retail. Last year, our Online Grocery Pickup continued to grow as a customer favorite, and we opened new stores with some pretty exciting features. What’s more, our incubation arm Store No 8 moved like a startup to test better ways to shop.

Associates Came Together to Help Those in Need
After natural disasters destroyed homes across the U.S., we witnessed communities and associates come together in times of need. From Hurricane Harvey to Hurricane Maria, from earthquakes in Mexico to wildfires in California, we were proud to see Walmart associates use their unique skill sets to help those affected get back on their feet.

We Started With #HelloMyNameIs
Every year, our Shareholders meeting brings together exceptional associates from around the world. It’s always inspiring to see what our international co-workers are up to, but last June we heard a powerful story from an Asda associate who’s carrying on his late wife’s legacy, and we just had to share it.

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