Walmart touts its roots as advantage
FAYETTEVILLE, Ark. — Walmart CEO Doug McMillon is touting the company’s traditional retailing roots as a competitive advantage as it seeks to take sales away from Amazon at a time of industry upheaval.
Speaking Friday at the annual shareholders’ meeting, McMillon highlighted a range of approaches Walmart has introduced or tested in the past year, like grocery pickup and technology that tracks food through the global supply chain. The company has also made investments in its online operations, buying up several smaller retail sites.
McMillon and other executives also highlighted the company’s investments in higher wages and training for its employees.
“We will compete with technology, but win with people,” McMillon told a cheering audience.” We will be people-led and tech-empowered.”
The gathering — part pep rally, part music concert, and only briefly a business meeting — comes as Walmart’s moves to meld its online services with its battalion of 4,700 stores are gaining momentum.
Walmart’s online sales grew as it tinkered with shipping offers and other services, and the retailer drew more shoppers to its stores as well in its fiscal first quarter. The world’s largest retailer has posted sales gains at established stores for the 11th straight quarter, and customer traffic has risen for the 10th quarter in a row.
The mood at the meeting was upbeat, despite the overall struggles of the industry. About 14,000 people packed the arena including Walmart workers from around the world as well as shareholders, analysts and several members of the founding Walton family. Gwen Stefani, Mary J. Blige, Ne-Yo and the Band Perry performed while Blake Shelton served as host.
Two employees, speaking on shareholder proposals, called for Walmart to provide more hours for part-time workers and greater parental leave. Both comments prompted cheers from the employees.
McMillon highlighted the company’s efforts to offer more shopping options, including automated pickup stations in some store parking lots, in-store pickup for online orders, and Jet Fresh delivery, which provides grocery delivery in one or two days and is available to about half of U.S. households. That service is a result of the company’s acquisition last year of online retailer Jet.com.
“The historic trade-off between price and service doesn’t really exist anymore,” McMillon said.
Wal-Mart’s financial performance has stood out amid a largely gloomy environment for retailers.
As a result, investors have been drawn to Walmart shares, which have risen 13 percent over the past year and are hovering close to $80.