Why Walmart isn’t worried about competitors
The retail industry is more competitive than ever, but Walmart CEO Doug McMillon told a gathering of more than 14,000 associates and shareholders that he is more worried about the enemy within the company than competitors.
“The truth is the real villains are lurking within the company,” said McMillon. “Our real villains are things like bureaucracy, complacency, a lack of speed, or a lack of passion.”
At the company’s Annual Shareholders Meeting in Bentonville, Ark., McMillon said Walmart is uniquely positioned to define the future of retail. He challenged the company’s more than 2 million associates to win the future of retail “one customer at a time.”
“We have strong competitors, but they don’t have what we do. They don’t have you – 2 million associates who want make a difference. Think about the map of our locations,” McMillon said. “No one else has that incredible network around the world. Now, think about our supply chain and experienced logistics team. I get excited about what our technology team is now capable of. As we add new capabilities and join these unique assets together effectively, we’re going to have something special.”
During the meeting, which featured celebrity entertainment from Reese Witherspoon, Ricky Martin, Mariah Carey, Rod Stewart and a cameo appearance by Carol Burnett, worker shareholders reiterated their call for $15 an hour and access to full-time hours for all associates. They also proposed two resolutions intended to rein in executive compensation.
Additionally, Walmart worker shareholders presented a proposal, supported by the Sierra Club, calling for Walmart to reduce greenhouse gas emissions produced by international marine shipping.
The meeting followed a week of events in Northwest Arkansas that celebrated the company’s associates. The company shared a series of initiatives in its U.S. stores to respond to associate feedback and provide greater career opportunity.
The company announced:
• Raising the starting wage for more than 100,000 department managers and specialists
• Changes to its dress code
• Improvements to the in-store experience for both associates and customers, including the return of Walmart Radio and changes to store temperatures
• New technology for all department managers
• And new associate badges that read: “Our People Make the Difference”
After the meeting, Walmart CFO Charles Holley said the company can expand revenues by $10 billion to $20 billion per year in response to an analyst's question about how much the retailer can grow the business over the next few years.
Wal-Mart Stores Inc. operates 11,462 stores under 65 banners in 28 countries and e-commerce websites in 11 countries.