Clarifying success : Executive: ‘We’ve been working hard to simplify the experience’
Posted on Friday, June 6, 2008
ROGERS — It’s a safe bet the word “ clarify” and the phrase “ simplify the experience” will come up dozens of times at Bud Walton Arena in Fayetteville this morning, when thousands of associates, shareholders and corporate executives gather for the annual Wal-Mart Shareholders Meeting.
At least that’s the impression executives made Thursday when they opened the doors to the Pleasant Crossing Supercenter in Rogers, the Sam’s Club in Fayetteville and more for a caravan of media gathered here from across the globe.
“ We’ve worked hard to establish clarity, ” Gary Severson, Wal-Mart senior vice president of entertainment, said to media gathered at the Pleasant Crossing Supercenter. “ You’ll see examples of that no matter where you turn. We’ve been working hard to simplify the experience. ”
Those same key words were played up in home, hardlines, apparel, grocery and every other department highlighted on the Thursday tour.
“ Over the past year, Wal-Mart has established a clear mission, ” Stephen Quinn, Wal-Mart executive vice president and chief marketing officer. “ Save Money. Live Better. That provided the clarity. It’s about providing a clean, fast and friendly stores. ”
There was a day when one of the leading complaints levied by Wal-Mart customers was its appearance: crowded aisles and lack of clarity and organization. Stop by the electronics department of many Supercenters today and you’ll find an expanded collection of flatscreen monitors by leading brands, such as Samsung and Sony. Over the past year, much of the clunky shelving has been eliminated and the flatscreens have been wall mounted. Individual descriptions and pricing information has been reduced to a single hanging tag, and large overhead signs indicating where each of the leading brands are located can be seen from anywhere in the home entertainment department.
Many of these same patterns have been followed in Wal-Mart’s other power categories and departments. For example, the home department has been pulled into one concentrated area, rather than being spread to two or three parts of the store. The department has also partnered with Better Homes and Gardens to enhance brand identity throughout, and the shelving space allotted to each item has, in many cases, been reduced in order to establish a cleaner, clearer and easier shopping experience.
According to executives, that clarity, combined with Wal-Mart’s continued focus on offering the lowest prices, has played a significant part in positioning the world’s largest retailer during unstable economic times in the United States. On Thursday, Wal-Mart released its net sales for May 2008 and the first 17 weeks of Fiscal Year 2008, both of which indicate the retailers strategy is paying dividends.
Statistics show Wal-Mart’s combined domestic and international sales were $ 31. 036 billion in May 2008, up 9. 8 percent from May 2007. By comparison, sales through the first 17 weeks of Fiscal Year 2008 were $ 126. 378 billion, up 9. 1 percent from the same period last year. International business was up 16. 6 percent in May 2008 and 18. 3 percent so far in FY 2008, while domestic sales were up nearly 8 percent in May 2008 and over 6 percent so far in FY 2008.
“ The Wal-Mart U. S. underlying business continues to be strong, ” said Eduardo Castro-Wright, Wal-Mart U. S. president and chief executive officer. “ Our comparable store sales continue to increase because of our price leadership, merchandising initiatives and operational improvements. We also believe we’re seeing some benefits from the stimulus checks. Customers continue to relay on Wal-Mart to stretch their dollars. ”
Wal-Mart’s strongest areas continue to be grocery, health and wellness and entertainment, but the retailer’s home department has shown positive signs, posting its first comparable store sales increase in more than two years.
In other areas, Wal-Mart continues to expand its Money Center business, opening its 500 th Money Center (in Mississippi ) earlier this week. Jane Thompson, Wal-Mart senior vice president of financial services, said the retailer has grown its Money Center business by more than 60 percent since launching six years ago. Wal-Mart Money Centers cash an average of 3 million customer pay checks per week.
Wal-Mart’s $ 4 generic prescription program continues to build momentum as well, having saved its customers an estimated $ 1. 1 billion in the first 20 months of its existence, according to John Agwunobi, senior vice president of health and wellness.
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