To: All Officers
From: Mike Duke, President and Chief Executive Officer – Walmart
Date: Jan. 28, 2010
RE: Building a Stronger, More Global Walmart
During the holiday season, I loved spending time in our stores and clubs. It made me proud to see our purpose of helping people save money so they can live better come together in one efficient, smooth operation. As the new fiscal year begins, it’s important to remember how much people trust us to provide more value and quality for their dollars than anyone else.
At Walmart, looking for ways to operate leaner and strengthen our price leadership has always been a core part of our culture. We’ve laid out our three priorities to deliver more value for both customers and shareholders – growth, leverage and returns. We’re continuing to make a number of changes across the business to ensure that this strategy is driving our structure, and that every part of our business is becoming more global, leveraging our scale, and moving closer to the customer. We also want to provide our associates with more opportunities to advance and succeed at Walmart and in life.
- This morning, many of you started the day seeing the news about our new Global Sourcing organization. Under Eduardo’s leadership, we are restructuring Walmart’s global sourcing team to leverage the scale of our global merchandising organization, reduce costs and drive quality throughout our supply chain.
- Later today, you will hear from Eduardo and his leadership team about the new structure Walmart US is creating to grow in new markets, leverage scale for greater efficiency, and offer new opportunities for some of our most talented associates.
- There is also fantastic potential for Walmart around the world in e-commerce, and today Eduardo is announcing the formation of a global.com organization.
- Over the last several weeks, Brian Cornell and his Sam’s Club team have announced the closure of 10 U. S. clubs, as well as new initiatives to strengthen member loyalty and drive growth that will result in the elimination of demo and membership sales rep positions. These decisions are difficult, yet right for the long-term profitability of the business.
Taking care of our associates impacted by these changes is one of our most important considerations. We will do all we can to make the transition as smooth as possible for them, consistent with our values.
Sam Walton had the foresight to combine a culture of values that remains constant with a business model that is able to respond quickly to a changing world. Leading change while upholding our culture is our collective challenge. Each of us is a reflection of the culture that Sam established of constantly driving change, while striving for excellence, serving our customers and treating everyone with respect. Your leadership and how you communicate with your associates has never been more important.
Please take the time to review today’s announcements and understand how these changes will make Walmart a stronger, more global company.