Today, Walmart U.S. president and CEO delivered the following remarks,
as prepared for delivery, at the company’s Year Beginning Meeting (YBM)
in Orlando, FL at 2:00 pm EDT.
“Good afternoon.
“It's wonderful to see so many of you here in Orlando and to enjoy some
warmer weather. I was certainly glad to leave my coat behind in
Bentonville!
“I want to start out by thanking you for being such great partners.
“We love selling your brands and working with you every day to delight
our customers. Your products are the heart and soul of what we do.
“We need each other and we will continue to strengthen our relationship
with you this year and beyond.
“Keep bringing us your best ideas and innovative products. We want to
sell them!
“Because even in a year as challenging as last year, Walmart U.S. is a
growth company – we opened 251 new stores and increased net sales by
almost 2 percent.
“And we want you to grow with us.
Customer Access
“We're excited about the year. We just had a good meeting with our store
managers and we're excited about serving our customers.
“They are the reason for our existence and we are committed more than
ever to getting them the products they need, when they want them.
“We are focused on driving sales, running our stores better than ever
and on winning at the intersection of digital and physical.
“Our Supercenters will remain vital for the stock-up trip but our small
format stores are doing really well.
“They have Walmart prices with easy access; they are convenient and our
customers love them.
“So we're building more Neighborhood Markets and Walmart Express stores.
“Our real estate strategy is centered on the broadest selection of
products through a digitally connected, multi-format portfolio.
“You may have heard about our grocery pickup program in Denver, which
has been really well-received.
“Joel Anderson with our e-commerce division will talk more about this a
little later as well as other great options such as Site to Store, Ship
from Store, and Pay With Cash.
“So we've got a lot of exciting things coming together around one
customer, one brand.
“U.S. Manufacturing Part of customer access is local sourcing.
“We've been successful with this in produce.
“But this is also about general merchandise – there is less lead time
allowing for quicker turnaround to meet customer demand and a much more
efficient supply chain. This is true here in the U.S. and it is true
abroad.
“As the middle class grows in emerging markets, local manufacturing will
be increasingly the most cost-effective.
“Many of you were here a year ago when we challenged you to think about
making your products for the U.S. market right here in America.
“We've pledged to spend $250 billion on U.S. products over the next ten
years. The Boston Consulting Group predicts that this commitment
will create 1 million jobs.
“Since last year I've been making the rounds talking to just about
anyone who’ll listen about this opportunity to re-establish a
manufacturing base in the U.S.
“You may have seen our ads about this during the Olympics. If not, let's
take a look.
“I love that ad because it shows that when we work together we can
change people’s lives! We can create jobs and revitalize communities.
“We don't have to celebrate the past in U.S. Manufacturing we can create
new opportunity together now!
Progress
“Last year we invited South Carolina Governor Nikki Haley to this
meeting to tell us what the governors were doing to bring manufacturing
to their states. While here she met with Element TV.
“Because of our commitment her energy and their investment, Element
moved into a facility in Winnsboro, SC. Today, I'm pleased to be able to
show that assembly is underway. When at full capacity they’ll employ 500
people in the Winnsboro region!
“Here's another story 1888 Mills out of Griffin, GA makes towels for us.
“They were one of the first movers in this space and just a year later
sales of the product are up 24 percent compared to the previous
towels.
“They are expanding and they just bought another huge facility in
Griffin, 500,000 square feet, to grow their business.
“Last March, also at this summit, American Home Manufacturing was
inspired to explore making their bedding here.
“Today, I'm pleased to share that American Home Manufacturing is moving
the production of their comforters to South Carolina. This facility will
create 200 jobs!
“We're finding the math works in other categories too – from shoes to
socks to curtains, toys and light bulbs.
“Some of you have joined us this past year as we’ve announced these
commitments. It's been great and we hope that a lot more of you will
consider what you can do to make products here.
Innovation Fund
“We're also thinking of ways we can help you overcome barriers to U.S.
production. You may have heard that in January, in conjunction with the U.S.
Conference of Mayors and the Walmart Foundation I announced a
$10 million U.S. Manufacturing Innovation Fund.
“It will provide grants to innovators in the manufacturing sector –
that’s non-profits, universities, think tanks in categories that are
difficult to make here.
“The innovation fund launches today and we look forward to awarding the
first grant. Please help us spread the word about this opportunity!
Next Steps
“So, where do we go next? One year into our commitment, we've begun to
think of new ways we can source U.S. products.
“We are taking big portions of our business out to bid to give our
current suppliers, and possibly new ones, an opportunity to secure more
business with us for longer-if the products is made here.
“Here are ways to get involved:
“1. You may have noticed that we have some new faces in the room today.
They are American manufacturers and entrepreneurs who have products,
ideas, and capital to revitalize U.S. manufacturing.
“I hope you will meet with them while you are here and brainstorm new
and innovative ways to work together to make your products here.
“2. Today I'm also announcing something very different for us. To my
knowledge, we've never done it before.
“We are putting our patio furniture out for bid and we are looking for
suppliers to make it here. We will launch the RFP next week.
“Why patio furniture? There are long lead times and we have to make a
commitment for the following year before any of the current year’s
merchandise has sold. Making the furniture closer to point of sale will
be better for our planning and better for our customers.
“We're announcing patio furniture today-but it's just a start. We'll
have more RFPs in the coming months.
“3. And then on July 8, we'll be having an Open Call in Bentonville for
suppliers manufacturing in the U.S. and for suppliers ready to pitch new
products or new categories.
“Duncan and I will both be there with our merchants and we will make our
teams available. We want to hear from you about what else we should be
selling at Walmart that we make right here at home.
“And don't forget that in August we'll be in Denver, and will be hosting
another U.S. manufacturing supplier summit.
“We'll have the state officials, component and raw material suppliers
and other support there to assist you. We want to make that summit
meaningful for you and we want to hear from you on what it will take to
manufacture here.
“If you have any questions please call Duncan or call me.
“This is a once in a generation opportunity to do everything we can to
get U.S. manufacturing institutionalized! This won't be easy and it will
take all of us working together at every level. But if we do, we'll
remember this as the time we came together to change this country!
“So we're excited about the year!
“We feel really good about our strategy and digital and physical growth.
With our current stores, logistics networks, and e-commerce business we
feel like we are in a terrific position in the marketplace.
“And we look forward to growing with you.
“Thank you.”
About Walmart
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save
money and live better – anytime and anywhere -- in retail stores,
online, and through their mobile devices. Each week, more than 245
million customers and members visit our 11,302 stores under 71 banners
in 27 countries and ecommerce websites in 10 countries. With fiscal year
2014 sales of over $473 billion, Walmart employs more than 2 million
associates worldwide. Walmart continues to be a leader in
sustainability, corporate philanthropy and employment opportunity.
Additional information about Walmart can be found by visiting http://corporate.walmart.com
on Facebook at http://facebook.com/walmart
and on Twitter at http://twitter.com/walmart.
Online merchandise sales are available at http://www.walmart.com
and http://www.samsclub.com.
Copyright Business Wire 2014