Walmart US

Highlights

This is an exciting time at Walmart, as we are seeing more and more families across the United States trust Walmart's promise to help them save money so they can live better. Now more than ever, the entire organization is fully aligned to stand by this promise every day.

Consumers faced increasing challenges and uncertainties throughout the year. Our commitment to price leadership helped them save money when they needed it the most, which drove significant increases in store traffic. More people shopped at Walmart U.S. this year than ever before. More customers also shopped online during the year and their use of our Site to Store® free delivery service led to a record year for sales with this program.

We continue to build credibility and authority as the destination for many products customers want and need. Our assortments emphasize categories in which the Walmart brand has authority, where we can offer a full line of products and realize scale advantages. We began to integrate our global sourcing capabilities with the merchandise units in our three operating segments to accrue benefits – from improved product quality to cost efficiencies – that will strengthen our value proposition around the world.

Walmart surveys hundreds of thousands of customers monthly, asking them to rate their shopping experience. By year-end, the scores reflected record-high levels of satisfaction. Our faster checkouts, friendlier associates and cleaner stores are bringing more customers to our stores and driving increases in same-store traffic.

We are remodeling our stores, making them easier to shop, and leveraging technology to ensure increased operational efficiencies. The initial customer response to our Project Impact store remodeling plan has been positive. Under this plan, we expect to update approximately 700 new and existing stores this year.

Our logistics team implemented a number of productivity initiatives in warehouse handling and transportation. We passed along these savings to our customers through lower prices. Walmart reduced inventory levels from the prior year, a tremendous achievement, and one that exceeded our goal of growing inventory at half the rate of sales growth.

The combination of lower inventory and improvements in merchandise quality and presentation is contributing to a better customer experience and stronger financial performance. These achievements, along with our disciplined capital allocation process, helped Walmart U.S. finish the year with a solid improvement in return on investment.

It is a credit to all Walmart associates across the country that we had such a successful year. We are dedicated to providing associates with opportunities that offer good jobs, complemented by a revitalized training and development program that facilitates career growth. Our associates are energized by last year's results, but more importantly, by the opportunities that all of us see in the future.