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Walmart President and CEO Doug McMillon Highlights New Strategic Initiatives

Walmart President and CEO Doug McMillon Highlights New Strategic Initiatives

Tuesday, October 10th, 2017

Walmart President and CEO Doug McMillon has announced some big strategic investment plans for fiscal 2018 and 2019. With plans to invest $11 billion in capital expenditures, raise U.S. eCommerce sales by 40 percent, and add 1,000 online grocery locations, Walmart has laid out an ambitious set of initiatives priming the company for robust 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 said in a statement released prior to the company’s investor 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.”

Walmart storefront

In its pre-meeting news release, Walmart highlighted several new strategic plans to implement going forward, including its U.S. division’s goal to continue to prioritize store remodels and digital experiences over new stores. 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 discussed financial projections. In a statement, 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.”

Will an ambitious slate of growth initiatives and redoubled eCommerce efforts propel Walmart to the top of the pile as retailers vie for consumers’ business? Deli Market News will keep you in the know.