Walmart 2001 Annual Report Download - page 5

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have responded exceptionally well
to the high level of customer
service our Associates provide, and
to the introduction of Every Day
Low Prices in all our retail formats
in Mexico.
In particular, I’d like to thank our
ASDA Colleagues (Associates) in
the United Kingdom for their
exceptional performance over the
last year. For the fourth straight
year, ASDA was voted “Supermarket
of the Year” by Checkout magazine.
The division exceeded the
objectives set at the time we
acquired ASDA, and our Colleagues
accomplished our ultimate goal –
taking care of our Customers and
providing them with an exceptional
value in the marketplace.
The Wal-Mart Stores Division,
by far our largest, features our
Discount Store, Supercenter and
Neighborhood Market formats. The
year brought some truly bright spots
for this division as well.
We’ve made exceptional strides in
our food offerings through the
Supercenters and Neighborhood
Markets. This year, Wal-Mart
became the largest retailer in the
U.S. grocery industry, according to
Supermarket News. That is truly a
remarkable achievement, and I think
Sam Walton would be proud. As
always, we will continue to ensure
that we are the best food retailer, not
just the largest.
In July, we challenged our Associates
to react to the slowing economy by
reducing inventories by more than
$1 billion, the majority of which
would come from the Wal-Mart
Division. Despite disappointing
holiday sales, our Associates not only
met this goal – they exceeded it.
The division had a strong first half of
the year as our Associates built on
last year’s phenomenal growth. But
as we moved through the second half
of fiscal 2001, it became evident that
consumer spending was slowing and
would not recover in time for the
crucial holiday shopping season. Our
Associates reacted appropriately,
however, by continuing our focus
on customer satisfaction.
Although we did not end the year the
way we would have liked, the keys to
our ability to manage a slowdown in
the economy remain simple and
effective. They are what we have built
our business on since the beginning.
First, we must maintain an in-stock
level unequaled in the retail world.
Our commitment is unchanged:
provide the products our Customers
want at the moment they want to
make the purchase.
Second, we must provide the level of
service our Customers expect and
deserve. It’s not enough to provide
merchandise and a safe, comfortable
environment in which to shop. We
must generate the excitement and
enthusiasm necessary to build a
relationship with the Customer and
make each shopping experience
better than the one before. This
includes simple things like saying
thank you and greeting our
Customers warmly as they enter the
store. Sam Walton called it
“aggressive hospitality,” and it still
works today.
Third, we must provide our
Customers with top-quality
merchandise and services at Every
Day Low Prices. After all, that’s what
the sign says, and that’s our
commitment to our Customers.
Finally, it is a personal priority of
mine to identify and develop the next
generation of Wal-Mart leaders. For
years, it was enough to just develop
managers. But as the business
environment becomes more
challenging, it takes true leadership
to guide a successful business. Sam
Walton set the standard for our vision
of leadership, and we are carrying it
forward. We are committed to
growing the leaders today who will
propel this Company into tomorrow.
It’s the right thing to do for our
Customers, our Associates and
our Shareholders.
On a more personal note, I would
like, on behalf of all Wal-Mart
Associates, to thank David Glass for
his leadership over the past 25 years.
David served as Chief Executive
Officer for 12 years and presided
over more revenue and earnings
growth than any other CEO in the
history of retailing. We are fortunate
that David has agreed to stay on in
his present role, providing advice
and counsel to me and the entire
Wal-Mart team.
At Wal-Mart, we’re passionate about
delivering value to our Customers
and Shareholders. As Shareholders,
you play a vital role in our success as
you invest in Wal-Mart stock and
shop at our Wal-Mart stores and
SAM’S CLUBS. While our history is
rich with success, there’s no question
that our best years are yet to come,
and this time next year I expect to
report another record year for
Wal-Mart. Thank you, and I look
forward to visiting with you again
next year.
Lee Scott
“Sam Walton set
the standard for our
vision of leadership,
and we are carrying
it forward.”