Walmart 2001 Annual Report Download - page 16

Growing food sales is a major
emphasis as Wal-Mart seeks to offer
Customers exceptional value and
quality in food. Wal-Mart understands
Customers want to purchase all
their food and general
merchandise in one location.
Our goal is to provide them
with the freshest, most well
rounded assortment at the
lowest possible prices.
According to Supermarket News,
Wal-Mart became the largest
domestic food retailer during fiscal
2001. Sales in Supercenters now
routinely exceed those achieved by
discount stores. This accomplishment
alone demonstrates the great
Customer acceptance of our
food offering.
Supercenters have
been the Company’s
natural vehicle for
expanded food sales.
Customers look to
Supercenters to
provide one-stop
shopping, and a larger food selection
addresses their need for convenience,
selection and Every Day Low Prices.
“Customers told us what they want –
a wider selection of fresh bakery
items, meat and produce. We’re
simply meeting their needs by
providing the items
they look for every day,” Doug Degn,
Executive Vice President of Food
Merchandising, said.
Freshness in food is a strategic
advantage at Wal-Mart and is a key
element to our growth. Wal-Mart buys
products from all over the world to
ensure Customers have the best each
season offers. Our logistics team
quickly moves the merchandise
through the distribution network.
Turning merchandise quickly is key
to all fresh food areas. Associates
ensure food is stocked immediately
after it arrives. Last year, Wal-Mart
opened six new food distribution
centers to support the growth of
Supercenters, SAM’S CLUBS and
Neighborhood Markets.
“Freshness is the most
important indicator
of value and quality.
Price is meaningless
if products do not meet
or exceed Customers’
expectations of freshness
because Customers lose confidence
and trust,” Degn said. One initiative
to enhance the fresh food concept is
“Fresh and Alive at Five.” This
program emphasizes rotation,
presentation and efficient distribution
of fresh items when Customers are
most likely to be shopping – after
work and on weekends. In this way,
Wal-Mart can provide Customers with
the freshest assortment possible.
In addition to
national
brands,
Wal-Mart has also
focused on expanding its private-label
items. The Great Value®line offers
Every Day Low Price alternatives to
brand names, while maintaining
quality equal to or better than
competing name brands. The Sam’s
Choice®line offers products with
unique and innovative features
demonstrating the highest quality
available at Wal-Mart. Our private
label products are very well received
by Customers and continue to grow
as an important part
of our business.
Wal-Mart’s growth in
food translates into
unique job opportunities
for Associates. Our success in food
will be led by Associates who are
willing to try new approaches and are
committed to providing Customers
the outstanding service and value
they expect. “Our Associates are
dedicated, driven people and we
encourage them to seek any
opportunities that arise within the
Company. Our food operations allow
them another avenue for career
advancement,” Tom Coughlin,
President & CEO of Wal-Mart Stores
Division, said.
“We are bringing Wal-Mart’s
traditional philosophy of great quality
at the lowest price to food. We
understand the differences involved in
food retailing and we strive to provide
Customers with the freshest product
at the lowest price, Always! In return,
they come back and allow us to serve
them again. That’s what it’s all about,”
Degn said.
A FRESH LOOK AT FOOD.
A FRESH LOOK AT FOOD.