WebProNews

Tag: Doug McMillon

  • Walmart is the Roman Empire of Retail

    Walmart is the Roman Empire of Retail

    Walmart is the Roman Empire of retail, says Burt Flickinger, Managing Director of SRG. Walmart announced an impressive earnings and revenue beat that told the story investors want to hear. Walmart is winning the retail wars, especially against arch-rival Amazon. “Like Hannibal and the Carthaginians, Amazon is starting to go the wrong way.” says Flickinger. “Big win for Walmart today and they will accelerate that in the next two to seven years.”

    Burt Flickinger, Managing Director of SRG, a consumer industry business consulting firm, discussed how Walmart is winning the retail wars in an interview on Fox Business:

    Walmart is the Roman Empire of Retail

    This earnings report just reinforces its winning. Amazon is going sideways. This is a reenactment of the Punic Wars, Rome versus Carthage. Walmart is the Roman empire of retail. Like Hannibal and the Carthaginians, Amazon is starting to go the wrong way. Big win for Walmart today and they will accelerate that in the next two to seven years.

    What’s doubly impressive, we talk to a lot of vendors and shoppers around the world, what the vendors are saying is Walmart is reinvesting all the PPA (price and promotional allowances) in lower prices. Lower prices normally mean lower margins and lower revenue. But in this case, the shopper is shifting to Walmart.

    Walmart strategically saw all the land-based businesses like Payless and all the retailers from toys to sporting goods going out of business. They had great sales on land and not so good online. Walmart is winning both ways. Amazon, with all the trouble they’re having with Whole Foods, can’t capitalize. Walmart is running the table.

    This Says it All for US Retail

    This says it all for US retail. The well capitalized highly capable retailers are winning and if it’s a one man show, like Bezos running the show, you could be Alexander the Great, you could be Hannibal out of Carthage, but one general isn’t going to win a war. Recent (lower) retail sales numbers were a combination of a couple things. One is Jerome Powell scared the market, especially high to mid-end, didn’t spend as much. Also, consumers were a little bit scared toward the end of the year. Walmart, off price, low price, did very well, but full price full service struggled and that’s why the numbers were bad.

    Walmart comp sales increased 4.2 percent, just like Steve Jobs and Apple with their great campaign Think Different with Muhammad Ali, Walmart is thinking different with Doug McMillon. It’s evolved from a company of family management to professional management. Walmart had 40 percent growth online.

    Walmart Ads Are Really Connecting

    Before, Walmart looked at advertising as an expense. But as Jerry Della Femina said, most of the Super Bowl ads were pretty pathetic. Walmart was one that stood out because it advertised Walmart online and Walmart in-store. The Walmart ads are really connecting with consumers, a United Nations of consumers.

    They’re reaching everybody around the world with better prices and better service. Doug McMillon has invested in inventory and has invested in store staffing, first to raise wages with some push from the UFCW. They are hitting on all cylinders. The biggest problem now is they can’t handle all of the volume they are seeing on the weekends.


  • Walmart CEO: We Had To Become More Digital

    Walmart CEO: We Had To Become More Digital

    “We had to learn to work in different ways to become more digital and to put data to work in different ways,” says Walmart CEO Doug McMillon as he reflected on the release of their blowout financial results. “Basically, to create a seamless experience for customers. We don’t want them to sense any difference as it relates to our brand whether they are shopping inside a store, picking it up, or having it delivered. All of those differences and channels that we might have thought about in the past need to be erased and taken away.”

    Doug McMillon, CEO of Walmart, discusses how the company has changed to become more digital over the last couple of quarters in response to the pandemic:

    Ecommerce Was Very Strong

    I would like to say thank you to all of our associates around the world and here in the US. They did a great job. You can imagine how challenging it is in this environment to go to work everyday and serve customers and keep the supply chain moving. Whether it’s in our stores, our Sam’s Club’s, or our distribution centers they have done a great job.

    Customers have been responding in waves as we’ve gone through the first and second quarters. Not surprisingly, they got really focused on things they needed to stock up to be at home for a long time at first. Over time, as we got through the second quarter and stimulus checks came in to play and people were at home, we certainly saw them buy things like laptops and tablets and fishing equipment and bicycles. Things that were related to home decor as they were at home thinking about their environment inside and outside the house we certainly saw them respond with what they were buying. Ecommerce, in particular, was very strong.

    Technology Phenomena Happening Around the World

    I’ve been in retail for almost 30 years and it’s really exciting when so many things can be done using technology. We can save customers time and expose them to so much more choice than we could previously. Our ecommerce assortments are broader as retailers and that’s certainly true at Walmart. We sell first-party owned inventory as well as through our marketplace. Now they can pick up their phone or be at home and open up their laptop and shop in so many different ways and have access to so many different things. It’s a lot of fun to be able to try and serve them in that way. That phenomena is happening around the world.

    You can use your app to do pickup and our stores. You can use your app to have the product brought straight to your house. Obviously, you can come in the store and we are learning how to use technology inside the stores in different ways to save you time. It boils down to access to assortment and an ease of shopping here in the US and around the world that people haven’t experienced before. That’s happening in Mexico, Canada, China, India, and all over the world.

    We Had To Become More Digital

    There have been a lot of changes inside the company. We had to learn to work in different ways to become more digital and to put data to work in different ways. Basically, to create a seamless experience for customers. We don’t want them to sense any difference as it relates to our brand whether they are shopping inside a store, picking it up, or having it delivered. All of those differences and channels that we might have thought about in the past need to be erased and taken away. Our teams have been doing a great job doing that.

    The outcome of that is this ease of shopping that’s unique and different. In our case, we’ve got so many stores so close to customers around the country it gives us a big advantage especially in being able to deliver quickly. We’ve got an express delivery system here in the United States that commits to delivering orders from our stores in less than two hours. That’s now in more than 2,000 stores and coming to stores all over the country. We are actually delivering a lot faster than two hours so far. That’s a great experience.

    We believe that this is something that we can build on along with having great stores where you want to come in from time to time, stock up, and experience what’s new. Really, we think that this omni world of retail is what will end up being the winning strategy over time.

    Scale Can Sometimes Be A Disadvantage

    Scale can sometimes be an advantage and sometimes it’s a disadvantage. Speed also matters a lot. Creativity matters a lot. What I’m proud of is how our team is responding to create new solutions for customers. Ultimately, whether Walmart grows or not is all up to them. We are serving families, moms and dads, and customers that have a lot of different choices. Even during the pandemic period with ecommerce and all the chains that were open there was still a lot of choice.

    We’ve got to compete to earn their business everyday and that’s the approach we take. Our team has really stepped up during this period and even before the pandemic to drive change and to create more solutions for customers.

    Walmart CEO Doug McMillon: We Had To Become More Digital
  • Walmart’s eCommerce is Booming, Sales Grow 33% in First Quarter

    Walmart’s eCommerce is Booming, Sales Grow 33% in First Quarter

    Walmart delivered on the online sales growth it hinted at after its less than stellar performance during the last holiday season. With its eCommerce sales seemingly ready to bounce back, the retail giant’s stocks traded higher on Thursday. Business analysts also believe that Walmart is in a position to take advantage of a cyclical boom that will hit discount retail in the next few years.

    Walmart recently reported its first quarter earnings and the numbers are positive. Earnings have reached $1.14 per share and on revenue of $122.69 billion. The numbers have exceeded estimates of $1.12 in EPS and $120.51 in profits. What’s more, profits are up 4.4 percent compared to last years. Same-store sales received a 2.1 percent boost, a bit ahead of Wall Street’s projection of 2 percent while WMT stock grew by almost 2 percent in pre-market trading on May 17.

    More importantly, online sales growth have increased to 33 percent this first quarter. It’s a massive improvement after falling 50 percent and 23 percent in the third and fourth quarter respectively. The numbers have undoubtedly caused investors to breathe a sigh of relief.

    Walmart’s Sam’s Club performed admirably in the first quarter, with the company reporting same-store sales boost of 3.8 percent and a commensurate 5.6 percent increase in traffic.

    International sales were also robust, rising up to 11.7 percent to $30.3 billion. It’s not so surprising though, as the company has been aggressively trying to stake claims on high-growth regions like China and India through acquisitions and partnerships. Just this month, Walmart revealed that it’s taking majority ownership of Flipkart, a leading eCommerce company in India.

    In a statement, Walmart CEO Doug McMillon said that the company has shown a solid start to the fiscal year and that they’re encouraged by the momentum Walmart has.

    “ We are changing from within to be faster and more digital, while shaping our portfolio of businesses for the future,” McMillon added.

    That’s clear from the improvements Walmart has been making. The company has recently revamped its website, acquired online brands like Bonobos and added known brands like Lord & Taylor. Walmart has also equipped more of its branches to handle grocery pickup for online orders and made changes to its app. The company is also using more sophisticated software to better manage their inventory. This has allowed Walmart to prevent stock shortages while also avoiding having a glut of merchandise in stores that could lead to a slow down of new stocks.

  • Walmart Announces Their New CEO: Doug McMillon

    The current CEO of Walmart International, Doug McMillon, will be replacing the Walmart CEO, Mike Duke, after he retires next year. Currently, McMillon oversees 6,300 Walmart’s located outside of the United States and more than 800,000 employees in 26 countries.

    McMillon will step in for Duke effective on February 1, and has been voted into the Walmart board of directors effective immediately.

    Rob Walton, the chairman of Walmart’s board of directors explained their leadership change in a statement of the company website.

    This leadership change comes at a time of strength and growth at Walmart. The company has the right strategy to serve the changing customer around the world, and Doug has been actively involved in this process. The company has a strong management team to execute that strategy. Doug is uniquely positioned to lead our growing global company and to serve the changing customer, while remaining true to our culture and values. He has broad experience – with successful senior leadership roles in all of Walmart’s business segments – and a deep understanding of the economic, social and technological trends shaping our world. A merchant at heart, Doug has both a long history with our company and a keen sense of where our customers globally are heading next. He has also shown strong leadership on environmental sustainability and a commitment to using Walmart’s size and scale to make a difference in the lives of people, wherever they might be.

    McMillon says that he is very honored and excited to take this new step within the Walmart compay. “The opportunity to lead Walmart is a great privilege,” McMillon said. “Our company has a rich history of delivering value to customers across the globe and, as their needs grow and change, we will be there to serve them. Our management team is talented and experienced, and our strategy gives me confidence that our future is bright. By keeping our promise to customers, we will drive shareholder value, create opportunity for our associates and grow our business.”

    Duke also commented on his retirement saying that it has been a privilege to work for Walmart. “This is a great company and it has been an honor to help advance Sam Walton’s vision of giving people around the world a better life,” said Duke. “Our associates make it all possible and I’ve learned so much from them. No matter where I traveled, our associates continued to inspire me with their commitment to living our values, serving our customers and taking care of each other.” Duke will continue serving as chairman of the executive committee of the board.

    Image via Walmart.com

  • Walmart Just Named A New CEO

    Walmart announced Monday morning that CEO Mike Duke is stepping down, and he will be replaced by Walmart International President and CEO Doug McMillon. For the company’s Walmart International segment, McMillon has overseen over 6,300 stores and over 823,000 associates in 26 countries outside of the U.S.

    McMillon will take over in his new role on February 1st. He was also elected to the company’s board of directors, effective immediately.

    Duke will continue to serve as chairman of the executive committee of the board, and will stay on as an advisor to McMillon for a year. This follows in the tradition of his predecessors.

    Chairman of the Board, Rob Walton, said, “This leadership change comes at a time of strength and growth at Walmart. The company has the right strategy to serve the changing customer around the world, and Doug has been actively involved in this process. The company has a strong management team to execute that strategy.”

    “Doug is uniquely positioned to lead our growing global company and to serve the changing customer, while remaining true to our culture and values,” Walton added. “He has broad experience – with successful senior leadership roles in all of Walmart’s business segments – and a deep understanding of the economic, social and technological trends shaping our world. A merchant at heart, Doug has both a long history with our company and a keen sense of where our customers globally are heading next. He has also shown strong leadership on environmental sustainability and a commitment to using Walmart’s size and scale to make a difference in the lives of people, wherever they might be.”

    Duke had this to say: “This is a great company and it has been an honor to help advance Sam Walton’s vision of giving people around the world a better life. Our associates make it all possible and I’ve learned so much from them. No matter where I traveled, our associates continued to inspire me with their commitment to living our values, serving our customers and taking care of each other.”

    Duke joined the company in 1995, and has led logistics, distribution and administration divisions. He has also served as Walmart’s vice chairman (2005 – 2009).

    McMillon first worked with the company back in 1984, as a summer associate in a Walmart Distribution Center. He re-joined the company in 1990, and worked his way up the corporate ladder. From 2006 to 2009 he was the vice president and CEO of the company’s Sam’s Club division.

    Walmart says it will announce a replacement for McMillon at Walmart International by the end of the fiscal year.