In fiscal 2011, Walmart U.S. delivered strong operating income and expense leverage. Net sales
exceeded $260 billion. Operating income grew 3.1 percent to approximately $20 billion. We
offer one-stop shopping to millions of customers through more than 3,800 stores and over
617 million square feet of selling space.
Improved sales this year.
This year, the Walmart U.S. team is implementing a four-point plan
to improve comparable store sales. Walmart’s commitment is to deliver every day low price on
the basket. EDLP is what our brand was built on, and what drives customer trust and loyalty.
Working with our suppliers, we will offer the most relevant, broadest assortment possible across
all categories. We are expanding our assortment, reallocating selling space and enhancing
productivity initiatives to reduce costs. By expanding our multi-channel initiatives, customers
have even more opportunities to shop on their terms.
Continued growth in the U.S.
Growth through new stores remains a priority, with supercenters
the primary driver because they continue to offer the greatest returns and allow customers
a one-stop shopping experience. We are growing also through smaller formats, including both
grocery stores and even smaller, convenience formats. We will open our first convenience format
stores, Walmart Express, in the second quarter. These stores will be less than 30,000 square feet
and will sell grocery, pharmacy and limited general merchandise.
Solid and consistent expense leverage.
Our focus on delivering expense leverage is as strong
as ever. We continue to implement productivity initiatives throughout the stores, supply chain
and logistics to improve returns. Last, as we see topline sales increase through our focus on
EDLP and from operational and merchandising improvements, we can further enhance our
ability to drive expense leverage.