Wal-Mart CEO: Transformation is Real and Delivering Results
Wal-Mart will build more experimental stores to help the company broaden its appeal to Hispanic customers, rural customers and Baby Boomers. Wal-Mart now has more than 176 million customer visits worldwide each week.
05/06/06 In a keynote speech to shareholders, associates, managers and company leaders at Wal-Mart Stores Inc.'s 36th annual shareholders meeting CEO Lee Scott described Wal-Mart's ongoing transformation as delivering results for the company and the customers and the communities Wal-Mart serves. Calling the transformation plan "Wal-Mart Out in Front," Scott pledged to continue implementing changes that have driven growth and efficiency at Wal-Mart this year.
"Wal-Mart is undergoing a transformation. And it's real," Scott said in prepared remarks. "We are changing more rapidly and profoundly than we ever have. We're building stronger relationships with the working families who are our associates and customers. And the changes we are making are delivering results for our company."
Scott said sales per square foot at the new, urban Evergreen Park store, just outside of Chicago, are 25 percent above sales at other stores in the area. He also pointed out that at the new Plano, Texas, experimental Supercenter, gross profit per linear foot is 24 percent higher than the average store. In the coming months, Wal-Mart will build more experimental stores to help the company broaden its appeal to Hispanic customers, rural customers and Baby Boomers. Scott also revealed new figures that show Wal-Mart now has more than 176 million customer visits worldwide each week.
"Wal-Mart Out in Front" is a reflection of the company's commitment to its continuing transformation. In his speech, Scott outlined the five pillars of the plan the company has been implementing:
· Broadening Wal-Mart's appeal to all customers
· Becoming an even better place to work
· Improving business operations and efficiency
· Driving growth in the company's international business
· Making unique contributions to the community
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During the speech, Scott recognized Trent Ward, a Wal-Mart associate from Kenner, Louisiana who came to the aid of Hurricane Katrina victims. Scott asked Ward to stand on behalf of all the Wal-Mart associates who took similarly heroic actions, donated relief supplies or helped storm victims in the hours and days immediately following the disaster.
Scott concluded his remarks by speaking directly to company associates, saying: "Wal-Mart is out in front. And you are making a difference -- a real difference -- for our customers, for our company, and for the communities we serve."
"Wal-Mart Out in Front," is a nod to a famous piece of advice from Sam Walton, who said, "You can't just keep doing what works one time. Everything around you is always changing. To succeed, stay out in front of that change."
