Walmart Outlines Growth Strategy at 2023 Investment Community Meeting; Doug McMillon Shares
TAMPA, FL - With a well-laid growth strategy to guide it, Walmart is walking into the future with its sights set on a strong supply chain and global development. The big box chain will detail this strategy at its 2023 Investment Community meeting, where leaders will highlight its goals, methods, and initiatives.
“We are in a unique position to serve our customers and members however they want to shop, which will fuel continued growth,” said Doug McMillon, Walmart President and Chief Executive Officer. “As we grow, we will improve our operating margin through productivity advancements and our category and business mix and drive returns through operating margin expansion and capital prioritization.”
As part of the meeting, Walmart leadership will highlight the company’s purpose, culture, and the importance of its associates, especially as it unveils a plan for a next-generation supply chain. According to a release, the retailer wants to create a more connected and automated supply chain that will improve the experience for its customers and associates while also increasing productivity.
To achieve its supply chain advancements, Walmart is building a more connected omnichannel network that is enabled by greater use of data, more intelligent software, and automation. Together, these factors will improve in-stock, inventory accuracy, and flow for customers shopping in-store or via pickup or delivery.
By the end of fiscal year 2026, Walmart believes roughly 65 percent of its stores will be serviced by automation, and approximately 55 percent of the fulfillment center volume will move through automated facilities. This could lead to unit cost averages improving by approximately 20 percent.
As these changes are implemented, less physical labor will be required, but associates will get a higher rate of pay. Over time, Walmart anticipates increased throughput per person due to automation while maintaining or even increasing its number of associates as new roles are created.
“It all starts with our associates,” McMillon said. “We are a people-led, tech-powered omnichannel retailer. As it relates to being people-led, it’s about purpose, values, culture, opportunity, and belonging. We serve our associates by creating opportunities. Opportunities that turn jobs into careers. We help bring dignity to work by enabling them to see how they’re serving others as part of a team and helping them achieve their potential. And as we serve them, they serve our customers and members well…they make the difference.”
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How will this plan impact Walmart’s standing in the retail sector? Stick with AndNowUKnow for answers.