Walmart CEO reports substantial progress on key strategies

Highlighting the long-term areas where the company is making progress, Duke started by saying that investments in leverage initiatives are paying off around the world. For example, the U.S. logistics team is reducing shipping costs and increasing transportation efficiency, a single process initiative is generating significant savings in labor productivity in China, and the company has migrated all but one market in Latin America to its Costa Rican Shared Services Center. Duke added, “We’re driving costs out of our system so we can invest those savings into lower prices for Walmart customers.”

Duke said the company is “much more streamlined in how we make real estate decisions and invest capital.” He highlighted the stronger performance of new stores and progress in bringing down the cost to build, expand and remodel stores.

Duke said he “loved the progress that the company has made in e-commerce over the past year. The biggest opportunity we have is winning the intersection between physical and digital retail around the world. We’ve never been more connected across the company on e-commerce, and our results demonstrate this.” In the first half of the year, Walmart’s e-commerce sales grew 30 percent globally, including a strong performance at Yihaodian in China.

As the company has discussed previously, Walmart has made major investments in compliance over the past year. Its focus has been on better processes and procedures, increased training for associates and strengthening organizational leadership. “This is the right thing to do,” Duke said. “And let me be clear that our progress with compliance makes us a stronger business for the long-term. Compliance is an essential part of our growth strategy.”

Turning to Walmart’s 2.2 million associates worldwide, Duke highlighted that global associate engagement scores are currently at their highest mark ever, the company has hired more than 16,000 veterans in the U.S. in less than six months, and some of the best talent anywhere is excited about joining Walmart.  “I feel better than ever about our talented associates and the career opportunities we provide at Walmart,” said Duke. “The quality of the leaders we’re recruiting is just incredible.”

Duke also said that he was very pleased with the work the company has done to make a difference on big issues around the world. “We’ve only accelerated in the past year -- with our commitments on renewable energy, to reduce certain chemicals in products and to help revitalize manufacturing in the U.S,” said Duke. “We set the pace for how companies take on big issues facing society, and we’ll keep leading because it’s good for our business.”

Winning in Any Retail Environment

Duke closed his opening remarks by sharing his overall view on Walmart’s global business and where it’s headed: “Even in a tough and unpredictable economy, there is strength in our businesses around the world. We’re making substantial progress in areas that are the foundation for long-term growth and shareholder returns. And whether I’m meeting with the leadership team in the Home Office, or walking stores and clubs in any market, I see a team that’s disciplined, focused and executing on the fundamentals. Walmart will win.”

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