Wal-Mart Stores has laid out four key strategies in order to create the “Next Generation Walmart” as the company approaches deliverance on founder Sam Walton’s vision of giving “the world an opportunity to see what it’s like to save and have a better life”.
At the company’s annual shareholders meeting last week, president and CEO Mike Duke said Walmart must now strive to become a truly global company; understand the business challenges that retailers will face and solve them; play an even bigger leadership role on social issues that matter to customers; and keep its culture strong everywhere.
“Our results demonstrate the underlying strength of our business and our strategies of growth, leverage and returns,” Mr Duke told shareholders.
“But as proud as we are of our recent performance, future success is never guaranteed. I want all of you to be able to say that at this moment Walmart committed to being a truly global company and began building the Next Generation Walmart.”
In order to be a more global company, Mr Duke discussed the need to serve customers as a local store, share best practices and leverage Walmart’s global supply chain. He also stressed the importance of talent.
“Just over the next five years, we’ll create 500,000 jobs around the world,” Mr Duke stated. “We need to recruit the best talent and identify the best talent in our ranks. Then we need to develop leaders and help them become global citizens.”
Mr Duke highlighted the global challenges that the retail business will face over the next 20 years, including the impact of technology on shopping habits and, in particular, on pricing.
“Retail will soon enter an era of price transparency,” he pointed out. And what kind of retailer wins in a time of price transparency? You got it, the price leader. We need to really churn the productivity loop and deliver on our Every Day Low Price business model everywhere. Walmart must widen the gap here. We will win on price leadership, and we will win big.”
Mr Duke also committed the company to continued leadership on social issues, bidding to raise the bar higher in order to satisfy ever higher expectations.
As for the company’s plans for future growth, Mr Duke sees Walmart’s unique culture as a competitive advantage and one that needs to stay strong globally.
“I truly believe the retailer that respects individuals, that puts customers first, that strives for excellence, that is trusted will win the future,” he concluded.
No comments yet