Mike Duke’s four commitments
Walmart president and CEO Mike Duke had some interesting things to say about the company’s strategic priorities and his view of the long-term challenges and opportunities the company will face as it looks to maintain growth at the company’s annual meeting Friday morning.
“I think Sam [Walton] would be surprised by how far and how fast we have come over the last 20 years,” Duke said, challenging those in attendance to live up to vision of the company’s legendary founder to “give people around the world the opportunity to save money and live better.
To do so, Walmart will have to operate in a world that is changing in big, disruptive and complex ways. For example, he noted that in 20 years there will be a billion more people, energy will cost more, demand for food will double, technology will advance and competitors will become more innovative and nimble. In order for Walmart to get out in front of change, Duke said Walmart would pursue four priorities, including:
• Become a truly global company. • Understand the business challenges that retailers will face and solve them. • Play an even bigger leadership role on social issue that matter tour customers. • Keep our culture strong everywhere.
“Future success is never guaranteed. Leadership is not an entitlement, especially in our business,” Duke said, echoing a familiar theme of continuous improvement.
Accordingly, he noted that the U.S. division needs to improve same stores sales and Sam’s club need to continue to drive product quality and even greater membership growth while the international division will be called upon to further improve returns and accelerate growth.
“I am so optimistic about our business and you should be too,” Duke said. In the next five years the company will create 500,000 jobs as it continues to grow. It also plans to widen the price gap with competitors.
“We will win on price leadership and we will win big,” Duke said.
Then, quoting the Bible, he said, “To whom much is given, much more is expected. I think that applies to Walmart. If we want the freedom to pursue our business goals around the world we must play an even bigger role in solving the social challenges around the world.”