Walmart 2003 Annual Report Download - page 5

This is not just the opinion within
Wal-Mart. The Wall Street Journal, USA
Today and others have also made note
of our progress. As this improvement
continues, we will further encourage
our existing Customers to broaden
their shopping with us. In other
words, we are increasingly seeing
that Customers who shop with us
for food and basic household supplies
are adding apparel and electronics to
their shopping baskets.
Last year we assumed responsibility of
global procurement from a third party.
This allowed us to better coordinate
the entire global
supply chain
from product
development
to delivery.
In addition,
our global
procurement
program allows
us to share our
buying power and merchandise
network with all our operations
throughout the world. This helps fulfill
the promise of Sam Walton to deliver
quality and value not only to U.S.
consumers, but also to consumers
around the world.
Sam Walton also worked to
continuously develop the next
generation of Wal-Mart leaders.
He knew that to be successful, all
Wal-Mart leaders must understand
our culture and our commitment to
integrity. That’s why we’ve developed
a number of leadership initiatives,
including the Business Leadership
Series, People Asset Reviews and
accelerated programs for high-
potential international managers.
Because we are developing our leaders,
last year we were able to fill a number of
key positions with internal people. This
included the appointments of Linda
Dillman as senior vice president and
chief information officer (CIO); Susan
Chambers as senior vice president,
insurance and benefits; Kevin Turner
(former CIO) as president and chief
executive officer of SAM’S CLUB
Division; and Doug McMillon as
executive vice president and chief
merchant at SAM’S CLUB.
Speaking of SAM’S CLUB, it is
important for you to know that
we were not
pleased with its
performance in
2002. Today,
we have a new
management team
in place that is
energized and
refocused on the
basics of the Club
business. Satisfying the needs of the
business member is a renewed priority
for SAM’S CLUB.
We should also recognize the value
that our support groups bring to
the business. For example, the core
competencies we have developed in
logistics, information systems and
real estate represent an essential
part of our “every day low cost”
commitment, which makes “Every
Day Low Prices” possible.
Another highlight to the year was
when our company was honored by
FORTUNE magazine as the “Most
Admired Company” in America.
Generally, we are not fans of lists and
awards, but this one is meaningful
because it reflects our commitment to
our Customers and our communities.
Our Associates earned this award, and
we hope that you as Shareholders are
proud to be associated with Wal-Mart.
Finally, as we look to the year ahead,
and with war a reality, we see many
of the same challenges we faced in
the previous year. However, just as
in 2002, this is no excuse for poor
performance. In good times and bad,
Customers will shop at Wal-Mart. We
are well-positioned in the marketplace
as the price and value leader. We are
well-positioned for continued success.
Of course, I cannot end this letter
without expressing once again my
appreciation to our Associates around
the world for their hard work, to our
Customers for their loyalty, to our
suppliers for their support and service,
and to the Wal-Mart Shareholders
who invest in our Company.
My best wishes to all of you in the
coming year.
Lee Scott
3
“…thanks to our Associates,
Wal-Mart was able to report
record sales and record
earnings in one of the
most difficult business
environments in recent years.”