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Walmart President and CEO Doug McMillon Highlights Progress on Strategic Initiatives, Tracks Growth Going Forward

Walmart President and CEO Doug McMillon Highlights Progress on Strategic Initiatives, Tracks Growth Going Forward

BENTONVILLE, AR - As Walmart gears up to host its annual investment community meeting today, Walmart President and CEO Doug McMillon is preparing to announce some big strategic investments the company has planned for the fiscal 2018 and 2019. Including plans to invest $11 billion in capital expenditures, raise U.S. eCommerce growth by 40 percent, and add 1,000 online grocery locations, it looks like Walmart has big plans to prime the next few years for massive growth.

Doug McMillon, President & CEO, Walmart“We have good momentum in the business, we’re executing our strategy and moving with speed to win with the customer, who is more connected than ever and embracing tools that will save them both time and money,” McMillon shared in a statement ahead of the investment meeting. “We’re combining the accessibility of our stores with eCommerce to provide new and exciting ways for customers to shop. I’m proud of the team we have in place, the work we have underway and how we are positioned for success in the future.”

In the retailer’s pre-meeting news release, Walmart highlighted several new strategic plans the company plans to implement going forward, including its U.S. division’s goal to continue to prioritize store remodels and digital experiences over new stores.

Walmart storefront

This investment in digital experiences will likely include enhanced supply chain capabilities, more fulfillment capabilities, and an $11 billion capital expenditure budget for fiscal years 2018 and 2019. Other highlights from the company’s release include:

  • Expectancy to grow consolidated net sales at or above 3 percent
  • Anticipation of sales growth at Walmart U.S. eCommerce to be about 40 percent
  • Expectancy to add 1,000 online grocery locations in Walmart U.S.
  • Expectancy for effective tax rate to be approximately 32.5 percent
  • Global unit growth of approximately 280 for each of the fiscal years 2018 and 2019
  • Walmart U.S. expects fewer than 15 new Supercenters and 10 Neighborhood Markets in fiscal year 2019
  • Walmart International expects approximately 255 new stores with a focus in Mexico and China

Brett Biggs, Chief Financial Officer, WalmartAt the meeting, Walmart CFO Brett Biggs will also be discussing financial projections. Biggs commented, “We feel good about where we are as a company. Our plans are designed to win with both customers and shareholders as we operate within our financial framework. Our financial position is strong, which allows us to invest in the business while returning significant cash to shareholders.”

With big, headline-grabbing numbers such as $11 billion investments and 1,000 new locations, will Walmart’s new moves be enough to keep its position near the top of the retail food chain? AndNowUKnow will continue to follow this and other major moves in grocery.