Our Company By the Numbers Operational Overview
Highlights
- Net sales increased 1.1% to $258 billion. On a 4-5-4 calendar, customer traffic in comparable stores was up 1.3% and dot.com traffic hit 9-year highs.
- Gained market share in numerous merchandise categories.
- Grew operating income faster than sales – growing 5.2% to $19.5 billion.
- Completed remodels in 33% of stores, since starting Project Impact, which improved the customer shopping experience, leading to improved comp sales and productivity.
- Labor productivity increased for the year, contributing to operating expense leverage.
- Reduced inventory by $1.8 billion over the prior year.
- Grew ROI through gross margin improvements, expense and inventory management, and a disciplined capital allocation process.
- Achieved record associate engagement scores, which led to improved customer service.
- Achieved record customer service scores for the year, reflecting increased traffic and higher “fast, friendly, clean” scores.
- Exceeded $100 billion in net sales for the first time in company history, growing 11.2% on a constant currency basis, excluding the Chilean acquisition.
- Achieved strong comparable store sales, gaining market share in many countries.
- Brazil, China and Mexico added 17.5 million square feet of retail space, 83% of the segment total.
- Leveraged operating expenses in all four quarters on a constant currency basis, excluding the Chilean acquisition.
- Continued to make progress on reducing inventory and leveraging productivity through process improvements.
- Remained focused on balancing risk profile between mature markets like the U.K. and emerging markets like Brazil and China.
- Committed to improving country returns.
- Continue to be encouraged by the broad based appeal of EDLC/EDLP. Last year, customers came to depend on our price leadership from our 52 store banners.
- Delivered sales increase (excluding fuel) of more of 1.7%. Increased traffic year over year in all four quarters.
- Grew operating income faster than sales at a rate of 2.4% before the impact of restructuring charges.
- Grew membership income by 2.1%, driven in part by eValues and upgrades to Plus memberships.
- Reduced inventory by 9.5% and leveraged expenses in Q4, before the impact of restructuring charges.
- Increased both sales per labor hour and units per labor hour.
- Committed greater capital to remodeling existing clubs, and launched Project Portfolio test, increasing space for highly productive categories, such as fresh and health and wellness.
- Announced new product demo program to drive branding and sales.
- Closed 10 underperforming clubs.
- Improved shopping experience and increased productivity, leading to improved member experience scores and improved associate engagement scores.
(In millions, except retail units)