FAYETTEVILLE, Ark. — Wal-Mart Stores Inc.’s new President and CEO Mike Duke pledged to shareholders Friday that the world’s largest retailer will speed efforts to improve its operations, from offering more compelling merchandise to keeping prices low, as it aims to hold onto customers when the economy improves.
“I believe the economic crisis has brought a fundamental shift in consumer attitudes and behavior,” Duke told cheering shareholders packed into a University of Arkansas arena in Fayetteville, about 30 miles from its Bentonville headquarters.
“There is a ‘new normal’ in which people want to save money and are getting smarter about saving money. … So let me be clear, and people ask me about this all the time: our customers will stay with us when this economy turns around,” he said. “So we must seize this moment in time.”
Wal-Mart has taken customers from competitors and been a bright light in a bleak recession that has made shoppers focus on necessities like groceries and pull back on discretionary items like clothing. The company’s challenge now is to make sure its new shoppers stay when the economy recovers.
As a testament to recent success, Wal-Mart announced Friday it would launch a new $15 billion share buyback. The program replaces a $15 billion program begun in 2007 that has $3.4 billion of remaining authorization.
But at an annual meeting that was often about celebrating recent business success, the new CEO made clear he planned to not only embrace but accelerate the mission, started by his predecessor Lee Scott, for more corporate responsibility. That includes pressing for more changes in areas ranging from sustainability and responsible sourcing to increased diversity and more career advancement for its workers.
As part of that effort, Wal-Mart said Friday that it just launched a global council that’s comprised of 14 Wal-Mart female executives from around the world that’s designed to push for more advancement for women.
The nation’s biggest private employer has long been under pressure by labor-backed critics to keep improving its workplace practices, though criticism has diminished recently.
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