Walmart plans to be able to deliver to 95% of Americans within three hours by the end of the year, President and CEO Doug McMillon wrote in his annual letter to shareholders released Thursday (April 24) in conjunction with the retailer’s annual report.
This delivery capability will be enabled by Walmart’s investments in technologies throughout its supply chain, which are supporting both its stores and its eCommerce business, according to the letter.
“We are more tech-powered than we’ve ever been,” McMillon said in the letter. “We’re building and deploying today’s technologies, including AI, in its various forms, and automated storage and retrieval systems in our distribution and fulfillment centers.”
This supply chain automation helps Walmart eliminate or replace mundane tasks, better flow inventory and personalize experiences, per the letter.
These investments are part of the retailer’s continuous effort to improve its abilities to “serve people how they want to be served” by offering them the choice of deliveries of eCommerce orders, curbside pickup or visits to a brick-and-mortar store.
“When we say omnichannel, we just mean that we want to serve people however they choose to be served in that moment,” McMillon said in the letter. “Becoming even more convenient for our customers and members, along with our everyday low prices and a growing eCommerce assortment is driving our business.”
In its annual report, Walmart said its eCommerce sales reached $121 billion, with 8.3 billion units delivered same or next day.
The retailer also saw its revenues grow 5.1% and its operating income 8.6% in the fiscal year ended Jan. 31. It also saw a 27% increase in its advertising business and a 21% rise in membership income.
Addressing today’s “changing environment,” McMillon said in the letter that during his time with Walmart he has seen the retailer navigate 9/11, the global financial crisis, the pandemic and inflation.
“When I look around, I don’t see another company like ours,” McMillon said. “We’re proving we can change and innovate, and we know how to execute. Walmart is an ‘and’ company. We’re people and technology. We’re stores and eCommerce. We’re innovation and execution.”
