Walmart Inc. Sales Intelligence Blog

 

702 SW 8th Street
Bentonville, AR 72716
United States
479-273-4000
http://www.stock.walmart.com

Sector(s): Consumer Defensive
Industry: Discount Stores
Full Time Employees: 2,200,000

Walmart Blog Highlights

Walmart Inc. (NYSE: WMT) is ranked #1 on the 2020 Fortune 500 list

  • Walmart turns stores into automated fulfillment centers
  • Walmart to go driverless in expanded Arkansas pilot of middle-mile delivery
  • Walmart Announces Dr. Cheryl Pegus as Executive Vice President of Health & Wellness 

Walmart Social Media properties

Facebook: https://www.facebook.com/walmart
Instagram: https://www.instagram.com/walmart/
LinkedIn: https://www.linkedin.com/company/walmart/
Twitter: https://twitter.com/walmart
YouTube: https://www.youtube.com/walmart

Walmart Sales Trigger Events

Walmart will use robots to turn stores into automated fulfillment centers
Jan 2021
The wheeled robot can quickly go anywhere inside a warehouse to retrieve items from shelves and then take them to a workstation for assembly. Human associates will then be freed up to handpick products best left to non-robotic workers, such as meat, vegetables and fruits. In a post announcing the initiative on the company website, SVP of Customer Product Tom Ward said the process can “take just a few minutes from the time the order is placed to the time it’s ready for a customer or delivery driver to collect.” Being able to fulfill orders faster means Walmart can accommodate more customers, which could help the company in its bid to catch up to Amazon. Walmart is also teaming up with partners to test new technologies for the fulfillment centers. In some stores, for instance, it will offer an automated pickup option that’ll allow buyers to drive up to a designated area, scan a code and grab their order. Ward didn’t say how many stores will be converted into fulfillment centers exactly, or how many Alphabots will be deployed — he only revealed that the company is planning to convert “dozens of locations, with many more to come.” According to CNBC, though, it’s already broken ground on compact fulfillment centers in the Dallas area, as well as in Bentonville, Arkansas.
Source


Walmart to go driverless in expanded Arkansas pilot of middle-mile delivery
Dec 2020
Building on an earlier test, Walmart next year plans to go fully driverless in an autonomous vehicle pilot in Arkansas as well as bring the middle-mile delivery technology to Louisiana. Tom Ward, senior vice president of customer product at Walmart U.S., said in a blog post Tuesday that Walmart’s pilot of self-driving vans from Palo Alto, Calif.-based Gatik, launched in July 2019, will drop the safety driver and go solo on a two-mile route between a “dark” Supercenter in Rogers, Ark., and a Neighborhood Market in Bentonville, Ark.
During the initial pilot, the Gatik vehicles — three modified Ford Transit Connect vans driving up to 10 times a day, seven days a week — transported customer orders with human safety operators as backup. Ward noted that the vans safely traveled more than 70,000 operational miles in autonomous mode. (See a video of the Gatik self-driving van here.)“Now, we’re taking the next step forward: Gatik’s multi-temperature Autonomous Box Trucks will operate this route driverless in the state of Arkansas. This achievement marks a new milestone that signifies the first-ever driverless operation carried out on the supply-chain middle mile for both Gatik and Walmart,” he explained. “When we begin incorporating driverless Box Trucks into the Bentonville operation next year, the pilot will continue as it always has. But now, we’ll be working with Gatik to monitor and gather new data to help us stay on the leading edge of driverless autonomous vehicles.”
Source


Walmart Announces Dr. Cheryl Pegus as Executive Vice President of Health & Wellness
Today, Walmart announced Dr. Cheryl Pegus as Walmart’s Executive Vice President, Health & Wellness. In this role, Dr. Pegus will further develop Walmart’s bold healthcare vision, leading health and wellness across the Walmart enterprise. Dr. Pegus will report to Walmart U.S. CEO John Furner, and her first day with Walmart will be Dec. 21st.
"I am thrilled to welcome Dr. Pegus to the Walmart family to advance our efforts to continue exploring healthcare solutions for customers and associates, and helping Americans live better – and healthier," said John Furner, CEO of Walmart U.S. "She is an exceptional leader who will help us deliver care of the highest quality that people can receive at the right time, regardless of insurance coverage. This has never been more important as it is now, while the pandemic continues to put a strain on our healthcare system."
Dr. Pegus joins Walmart from her most recent role as Cambia Health Solution’s President of Consumer Health Solutions and Chief Medical Officer, where she was responsible for clinical and consumer strategy to increase access to affordable, equitable care.
Source

Walmart Partners with Goldman Sachs to Offer Marketplace Sellers Access to Capital
Sep 2020
Walmart announced that sellers on its Marketplace e-commerce site will be able to apply for lines of credit offered by Marcus by Goldman Sachs. Access to affordable capital is more important than ever as businesses large and small work to adapt and evolve to serve customers and grow their businesses. Initially, approved sellers will have access to lines of credit from Marcus between $10,000 - $75,000, and plans are to substantially increase the maximum line amount available in the future. The rates are competitive, with the most creditworthy businesses qualifying for the lowest rates.
Lines of credit offer businesses the flexibility to access money when they need, which could help them move fast and meet surging customer demand. It could also help fund innovation as we’re all working to adapt to constantly changing customer behavior and preferences. "We often say we want to use our size and scale for good, and giving small businesses access to inexpensive capital is one way we’re doing this," said Jeff Clementz, Vice President, Walmart Marketplace. "Healthy small and medium businesses are critical for our communities to succeed, and we will continue looking for ways to help them navigate these unprecedented times."
Source

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Walmart Earnings Call Highlights

Walmart Inc. (NYSE:WMT) Q3 2021 Earnings Conference Call
November 17, 2020

Executives in Attendance

  • Dan Binder – Investor Relations
  • Doug McMillon – President and Chief Executive Officer
  • Brett Biggs – Executive Vice President and Chief Financial Officer
  • John Furner – President and Chief Executive Officer-Walmart U.S.
  • Judith McKenna – President and Chief Executive Officer-Walmart International

Analysts in Attendance

  • Michael Lasser – UBS
  • Kelly Bania – BMO Capital
  • Paul Trussell – Deutsche Bank
  • Karen Short – Barclays
  • Peter Benedict – Baird
  • Simeon Gutman – Morgan Stanley
  • Robert Drbul – Guggenheim
  • Oliver Chen – Cowen
  • Kate McShane – Goldman Sachs
  • Ed Yruma – KeyBanc Capital Markets
  • Paul Lejuez – Citi
  • Seth Sigman – Credit Suisse
  • Chuck Grom – Gordon Haskett

Walmart CEO Doug McMillion


Comments from Doug McMillon, CEO:

"Walmart U.S. had another strong quarter. Comp sales increased 6.4% and we significantly reduced operating losses in eCommerce. Consistent with the second quarter, we saw customers consolidate shopping trips with larger baskets and fewer transactions. Comp sales accelerated from the beginning of the quarter, helped by food, consumables, and health and wellness. eCommerce grew 79%. Growth was strong in pickup and delivery as well as direct-to-home with the highest growth coming from marketplace."

"We also launched Walmart+, and we’re excited to have that important piece of the puzzle in place. We launched it with an initial set of benefits that we know are important to our customers. Over time, we’ll evaluate the program against our broader set of assets with the aim of improving the value proposition and deepening our relationship with customers, including earning a greater share of wallet. Our merchant and replenishment teams are working hard to ensure we have products available for our customers. In-stock levels have improved from Q2, but we’re still below where we want to be."

"We continue a series of actions to increase our focus on priority markets. We’ve recently announced the sale of our businesses in the U.K., Argentina and Japan. These teams have been an important part of Walmart and we’ll miss them. They will continue to innovate and grow under the new ownership structures, positioning them for future success."

"We’re committed to our stated priorities and you can see it with these actions along with others in the U.S., including Jet and VUDU. We know where to invest, and we’ll be aggressive where we should be, while taking action in other areas."

"We were pleased to adjust our store structure and increased wages for around 165,000 associates in Walmart U.S., and more than 20,000 received increases in Sam’s Club U.S. We’re also pleased to have hired over 0.5 million new associates during the course of this year, globally, as so many of them need to work."


Comments from Brett Biggs, CFO:

"Total constant currency revenue growth was strong, up 6.1% to more than $135 billion. Walmart U.S. comp sales increased more than 6%, international net sales grew 5% in constant currency, and Sam’s Club grew comp sales more than 15% excluding fuel and tobacco. The health crisis continued to shape shopping behaviors with trip consolidation, larger baskets and growing eCommerce penetration."

"SG&A leverage of 18 basis points in Q3 was aided by lapping last year’s non-cash impairment charge of approximately $300 million or 23 basis points, but was negatively impacted by nearly $600 million or 44 basis points of COVID-related costs. We continue to see operating efficiency improvements around the company."

"We continue to see trip consolidation in significantly larger baskets in Q3, resulting in average ticket increase of about 24% and a transaction decrease of about 14%. Customer transactions began to improve after we expanded store hours and we expect this trend to continue as we further extend store hours this month."

"Comp sales in Mexico grew more than 5% as the omni-channel strategy continues to accelerate. International adjusted operating income was strong, aided by government stimulus in various markets, Flipkart’s improved margin mix as well as cost savings initiatives in Mexico. The quarter included incremental COVID-related costs of approximately $65 million."

Walmart CFO Brett Biggs

Source

Walmart Board of Directors 

NAME TITLE COMPANY
Gregory B. Penner Chairman of the Board Walmart
Cesar Conde Chairman NBCUniversal News Group
Timothy P. Flynn Retired Chairman and CEO KPMG International
Sarah Friar CEO Nextdoor
Carla A. Harris Vice Chairman of Wealth Management, Head of Multicultural Client Strategy, Managing Director & Senior Client Advisor Morgan Stanley
Tom Horton Partner, Global Infrastructure Partners, and retired Chairman and CEO American Airlines
Marissa A. Mayer Co-founder of Lumi Labs, Inc., and Former President and CEO Yahoo!, Inc.
Doug McMillon President and CEO Walmart Inc.
Steven S Reinemund Managing Partner - Highline Group and Retired Dean of Business at Wake Forest University and Retired Chairman and CEO PepsiCo, Inc.
S. Robson ‘Rob’ Walton Retired Chairman of the Board of Directors Walmart Inc.
Steuart Walton Founder RZC Investments, LLC

 

Walmart Executive Leadership

NAME TITLE
Doug McMillon President and CEO, Walmart Inc.
Dan Bartlett Executive Vice President, Corporate Affairs
Brett Biggs
Executive Vice President and Chief Financial Officer
Rachel Brand
Executive Vice President of Global Governance, Chief Legal Officer and Corporate Secretary
John Furner President and CEO, Walmart U.S.
Suresh Kumar
Executive Vice President, Global Chief Technology Officer and Chief Development Officer
Marc Lore President and CEO, Walmart U.S. eCommerce
Judith McKenna President and CEO, Walmart International
Kathryn McLay President and CEO, Sam’s Club
Donna Morris
Executive Vice President, Chief People Officer, Walmart Inc.

 

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Walmart Annual Report Highlights

Walmart Operations:

Walmart Omni-Channel

Walmart U.S. provides an omni-channel experience to customers, integrating retail stores and eCommerce, through services such as "Same Day Pickup," "Same Day Delivery," "Delivery Unlimited," "NextDay Delivery," and "Endless
Aisle." As of January 31, 2020, the company had nearly 3,200 grocery pickup locations and over 1,600 delivery locations. Walmart has several eCommerce websites, the largest of which is walmart.com. The company defines eCommerce sales as sales initiated online through websites or through a mobile app. eCommerce sales may be fulfilled by a number of methods including
dedicated eCommerce fulfillment centers and stores. The following table provides the approximate size of retail stores as of January 31, 2020:

 

Walmart Operations

     

    Walmart Distribution

    During fiscal 2020, approximately 73% of Sam's Club's non-fuel club purchases were shipped from Sam's Club's 25 dedicated distribution facilities, located strategically throughout the U.S., or from some of the Walmart U.S. segment's distribution facilities, which service the Sam's Club segment for certain items. Suppliers shipped the balance of the Sam's Club segment's club purchases directly to Sam's Club locations. Sam's Club ships merchandise purchased on samsclub.com and through its mobile commerce applications by a number of methods including shipments made directly from Clubs, nine
    dedicated eCommerce fulfillment centers, two dedicated import facilities and other distribution centers.   

    Walmart Financial Highlights 

    Fiscal Year
    Fiscal Year Ends January 31, 2021
    Most Recent Quarter October 30, 2020
    Profitability
    Profit Margin 3.60%
    Operating Margin 4.81%
    Management Effectiveness
    Return on Assets 6.72%
    Return on Equity 24.13%
    Income Statement
    Revenue $548.74 Billion
    Revenue Per Share 193.71
    Quarterly Revenue Growth 5.20%
    Gross Profit 129.36B
    EBITDA 38.02B
    Net Income Avi to Common 19.74B
    Diluted EPS 6.93
    Quarterly Earnings Growth 56.20%
    Balance Sheet
    Total Cash 14.33B
    Total Cash Per Share 5.06
    Total Debt 69.2B
    Total Debt/Equity 79.08
    Current Ratio 0.83
    Book Value Per Share 28.76
    Cash Flow Statement
    Operating Cash Flow 33.6B
    Levered Free Cash Flow 26.78B

     

    Walmart Segment Operations

    Walmart U.S.

    Walmart U.S. is the largest segment and operates in the U.S., including in all 50 states, Washington D.C. and Puerto Rico. Walmart U.S. is a mass merchandiser of consumer products, operating under the "Walmart" and "Walmart Neighborhood Market" brands, as well as walmart.com and other eCommerce brands. Walmart U.S. had net sales of $341.0 billion for fiscal 2020, representing 66% of our fiscal 2020 consolidated net sales, and had net sales of $331.7 billion and $318.5 billion for fiscal 2019 and 2018, respectively. Of the three segments, Walmart U.S. has historically had the highest gross profit as a
    percentage of net sales ("gross profit rate"). In addition, Walmart U.S. has historically contributed the greatest amount to the Company's net sales and operating income.

    Many supercenters, discount stores and neighborhood markets are open 24 hours each day. A variety of payment methods are accepted. Consistent with its strategy, Walmart U.S. continues to develop technology tools that help better serve customers and be more efficient in stores, such as shelf-scanning robots, autonomous floor scrubbers, and automated unloading conveyor systems.

     

    Walmart International

    Walmart International is the second largest segment and operates in 26 countries outside of the U.S. Walmart International operates through wholly-owned subsidiaries in Argentina, Canada, Chile, China, India, Japan and the United Kingdom, and majority-owned subsidiaries in Africa (which includes Botswana, Ghana, Kenya, Lesotho, Malawi, Mozambique, Namibia,
    Nigeria, South Africa, Swaziland, Tanzania, Uganda and Zambia), Central America (which includes Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua), India and Mexico. Walmart International previously operated in Brazil prior to the sale of the majority stake of Walmart Brazil in fiscal 2019, as discussed in Note 12 to our Consolidated Financial Statements. Walmart International includes numerous formats divided into three major categories: retail, wholesale and other.

    These categories consist of many formats, including: supercenters, supermarkets, hypermarkets, warehouse clubs (including Sam's Clubs) and cash & carry, as well as eCommerce through walmart.com.mx, asda.com, walmart.ca, flipkart.com and other sites. Walmart International had net sales of $120.1 billion for fiscal 2020, representing 23% of our fiscal 2020 consolidated net sales, and had net sales of $120.8 billion and $118.1 billion for fiscal 2019 and 2018, respectively. The segment's net sales were negatively impacted by currency exchange rate fluctuations for all years presented. The gross profit rate is lower than that of Walmart U.S. primarily because of its merchandise mix.

     

    Sam's Club

    Sam's Club operates in 44 states in the U.S. and in Puerto Rico. Sam's Club is a membership-only warehouse club that also operates samsclub.com. Sam's Club had net sales of $58.8 billion for fiscal 2020, representing 11% of consolidated fiscal 2020 net sales, and had net sales of $57.8 billion and $59.2 billion for fiscal 2019 and 2018, respectively. As a membership only warehouse club, membership income is a significant component of the segment's operating income. Sam's Club operates with a lower gross profit rate and lower operating expenses as a percentage of net sales than our other segments.

    See the Full Walmart 2020 Annual Report

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    Walmart Org Charts

     Walmart Board of Directors

    Walmart Board of Directors

    Walmart Executive Leadership  

    Download the Walmart Deep-Dive Report to see organizational charts on key departments including Finance, HR, IT, Supply Chain, etc.

     

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