Walmart 2003 Annual Report Download - page 11

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certain products until they reached
certain price points,” says Harris.
“We no longer think that way, but
that doesn’t mean
we’re taking riskier
positions now. It’s
a simple matter of
merchandising to
where we know the
consumer is going.”
In the jewelry department last spring,
Wal-Mart introduced the Keepsake
brand of diamonds, featuring
fashionable cuts and high quality.
As a result, every other category of
diamond
sold at
Wal-Mart
increased
its sales,
and
Wal-Mart
became
one of
the top
sellers
of diamonds in the world.
Of course, one of our biggest sources
of new revenue will come from
new store locations. The
Company plans to add,
relocate or expand more
than 300 U.S. stores in
fiscal 2004, as well as between
120 and 130 international stores
in existing markets.
“Our Neighborhood Market stores
hold tremendous potential for sales
growth,” Coughlin says. “We have
49 of the stores, which are designed
to complement nearby high-volume
Supercenters by offering a convenient
format of fresh produce, meat, dairy,
a full line of dry groceries, half-hour
photo, pharmacies with drive-through
windows, and other general
merchandise.”
Challenges to
Growth
For our growth to
continue, Wal-Mart
must overcome
obstacles, such as
preserving and advancing the Every
Day Low Prices (EDLP) concept
in the face of increasingly talented
competition. We believe EDLP will
continue to produce growth because
we’re
working with
our suppliers
to package
goods and
distribute
them in
ways that
reduce
handling
and other
costs in the store. Customers trust
EDLP, relying on Wal-Mart to be fair
and honest with pricing. That trust
should preserve EDLP as a growth
engine for the Company.
Also, the Customer-centered
Wal-Mart culture must be embraced
by thousands of new Associates if the
Company is to keep growing. One
way we’ll retain that culture is by
continuing to recruit nearly 70 percent
of our management from the ranks
of hourly workers. When room is
available, college students who are
working for Wal-Mart are the first
considered for management jobs.
We call it the “First-in-Line” program.
In the end, Wal-Mart will continue
to grow by responding to Customers
on a store-by-store basis, stocking the
merchandise they want and providing
unmatched value. And that’s what
comes from forgetting about big
numbers and thinking small.
9
“Our growth comes
from thinking like
a small company,
not like a large one.”