OPENING DOOR TO FRAUDULENT OR
INVALID VOTES.
>> STRENGTH OF RETAIL ON
DISPLAY THIS WEEK, THIS
MORNING WE HEARD FROM LOWE’S
THE TARGET REPORTING
IMPRESSIVE BEATS TOP AND
BOTTOM LINE JUMP IN SAME-STORE
SALES TO OPEN AT ALL-TIME
HIGHS, AUKZ THERE AFTER
WALMART POSTED
BETTER-THAN-EXPECTED RESULTS
THIS WEEK ALSO REPORTING A 97%
INCREASE IN E-CONSUMERS SALES
AMID CORONAVIRUS PANDEMIC
JOINING ME CEO OF WALMART DOUG
MCMILLON GREAT TO HAVE YOU
THIS MORNING THANKS SO MUCH
FOR BEING HERE.
>> HAVE YOU BET GOOD MORNING,
MARIA.
.
>> WHAT A QUARTER, REALLY,
INTERESTING TO SEE WHEN YOU
ARE IN THE MIDDLE OF A CRISIS
IN MIDDLE OF A PANDEMIC, WHERE
CUSTOMERS WILL SHOW LOYALTY
THEY CERTAINLY SHOWED IT, AT
WALMART CAN YOU CHARACTERIZE
THE QUARTER FOR US WHAT DROVE
BUSINESS.
>> YEAH FIRST OF ALL, I JUST
LIKE TO SAY THANK YOU TO ALL
ASSOCIATES AROUND THE WORLD
HERE IN U.S. A GREAT JOB YOU
CAN IMAGINE HOW CHALLENGING IT
IS IN THIS ENVIRONMENT, TO GO
TO WORK EVERY DAY, SERVE
COMMERCE KEEP SUPPLY CHAIN
MOVING IN STORES SAMS CLUBS
DIRECTORS CENTERS THEY’VE DONE
A GREAT JOB COMMERCE HAVE BEEN
RESPONDING, KIND OF IN WAVES
FIRST AND A SECOND QUARTER
WON’T SURPRISE YOU THEY GOT
REALLY FOCUSED ON THINGS THEY
NEEDED TO STOCK UP TO BE AT
HOME FOR A LONG TIME AT FIRST,
OVER TIME AS WE GOT THROUGH
SECOND QUARTER STIMULUS CHECKS
IN PLAY PEOPLE AT HOME
CERTAINLY SAW BUYING THINGS
LAB TOTS TABLETS FISHING
EQUIPMENT BICYCLES, THINGS
THAT WERE REMITTED TO HOME
DECOR AT HOME THINK ABOUT
VIOLATOR INSIDE OUTSIDE HOUSE
RESPONDED TO WHAT THEY WERE
BUYING E-COMMERCE IN
PARTICULAR WAS VERY STRONG.
>> I LOVE GOING THROUGH SOME
OF THE SALES LINES AT WALMART
BECAUSE YOU REALLY SEE WHAT
PEOPLE ARE DOING YOU HAVE
BOARD GAMES YOU YOU PUZZLES
CONSTRUCTION DOING REALLY WELL
PUZZLES BOXES IN SECOND
QUARTER TWO OLYMPIC SIDE OF
POOLS A JUMP IN E-COMMERCE
SALES CHINA AS WELL AS UNITED
STATES TELL ME ABOUT WHAT IS
GOING ON DIGITALLY ARE YOU
SEEING A NEW WAVE OF COMMERCE
USE E-COMMERCE?
I KNOW JUST FROM MY OWN USAGE
WE ARE IN THIS PANDEMIC, AND
THOSE COMPANIES THAT CAN, YOU
KNOW, CAN ADAPT WITH
E-COMMERCE ARE CERTAINLY AMONG
WINNERS WALMART AMONG
LEADERSHIP THERE.
>> YEAH, I HAVE BEEN IN RETAIL
ALMOST 30 YEARS, IT IS REALLY
EXCITING TO BE PART OF A TIME
WHEN SO MANY THINGS CAN BE
DONE USING TECHNOLOGY, WE CAN
SAVE COMMERCE TIME AND EXPOSE
THEM TO SO MUCH MORE CHOICE
THAN WE COULD PREVIOUSLY.
OUR E-COMMERCE ASSORTMENTS
BROADER RETAILERS TRUE AT
WALMART FIRST PART OWNED
INVENTORY AS WELL AS
MARKETPLACE SO NOW THEY CAN
BEING PICK UP THEIR PHONE,
THEY CAN BE AT HOME OPEN
LAPTOP, THEY CAN SHOP IN SO
MANY DIFFERENT WAYS HAVE
ACCESS TO SO MANY DIFFERENT
THINGS, THAT IT IS A LOT OF
FUN TO BE ABLE TO SERVE THEM
IN THAT WAY IN A THAT
PHENOMENA IS HAPPENING AROUND
THE WORLD CERTAIN IN U.S. YOU
CAN BEING USE YOUR APP TO DO
PICKUP AT STORIES USE YOUR APP
TO HAVE PRODUCT BROUGHT STATE
TO YOUR HOUSE -- OBVIOUSLIES
COME IN STORE LEARNING HOW TO
USE TECHNOLOGY INSIDE THE
STORES IN DIFFERENT WAYS TO
SAVE YOU TIME, SO I THINK IT
BOILS DOWN TO ACCESS TO
ASSORTMENT AND EASE OF
SHOPPING IN U.S. AROUND THE
WORLD THAT PEOPLE HAVE NOT
EXPERIENCED BEFORE HAPPENING
IN MEXICO IN CANADA, HAPPENING
IN CHINA, INDIA ALL OVER THE
WORLD.
.
>> YOU’VE ALSO MADE CHANGES
USEFUL EXPANDED
THE AVAILABILITY OF
DISCLOSURE, PICKUP TIMES SLOTS
ABOUT 30% SINCE FEBRUARY.
IN RESPONSE TO THIS HEALTH
CARE CRISIS, I WANT TO ASK YOU
HOW THINGS HAVE CHANGED AT
WALMART?
BECAUSE I GUESS THE DAYS OF
THE MATERIAL STORE COUNTS SORT
OF BEHIND LARGELY, BUT ARE
REDIRECTING CAPITAL TOWARD
DEVELOPMENT OF THE GLOBAL OMNI
CHANNEL CAPABILITIES TO US TO
US ABOUT THAT HOW CHANGED
PRIORITIES.
>> GREAT QUESTION DROVE A LOT
OF CHANGE INSIDE THE COMPANY
WE HAD TO LEARN TO WORK
DIFFERENT WAYS TO BECOME MORE
DIGITAL PUT DATA TO WORK
DIFFERENT WAYS, BASICALLY, TO
CREATE A SEAMLESS EXPERIENCE
FOR COMMERCE, WE DON’T WANT
THEM TO SENSE ANY DIFFERENCE
AS RELATES TO OUR BRAND
WHETHER SHOPPING INSIDE A
STORE PICKING IT UP HAVING IT
DELIVERED ALL OF THESE,
DIFFERENCES CHANNELS WE MIGHT
HAVE THOUGHT ABOUT IN PAST
NEEDED TRIBE TAKEN AWAY TEAM
DOING A GREAT JOB DOING THAT
OUTCOME OF THAT IS EASE OF
SHOPPING UNIQUE DIFFERENT, AND
IN OUR CASE WE’VE GOT SO MANY
STORES SO CLOSE TO COMMERCE
AROUND THE COUNTRY GIVES US A
BIG ADVANCING TO DELIVER
QUICKLY WE’VE GOT A NEW
EXPRESS DELIVERY SERVICE IN
UNITED STATES, THAT COMMITS TO
DELIVERING ORDERS FROM STORES
IN LESS THAN TWO HOURS, THAT
IS NOW IN MORE THAN 2000
STORES COMING TO STORES ALL
OVER THE COUNTRY ACTUALLY
DELIVERING FASTER THAN TWO
HOURS SO FAR, THAT IS A GREAT
EXPERIENCE.
AND WE BELIEVE THAT IS
SOMETHING WE CAN BUILD ON
ALONG WITH HAVING GREAT STORES
WHERE YOU WANT TO COME FROM
TIME TO TIME STOCK UP
EXPERIENCE WHAT IS NEW, REALLY
WE THINK THIS OMNI WORLD OF
RETAIL WHAT IS WE WILL END UP
BEING WINNING STRATEGY OVER
TIME.
>> YOUR SCALE HAS ENABLED YOU
TO REALLY EFFECTIVELY COMPETE
WITH AMAZON, WHICH HAS PUT SO
MANY OTHERS OUT OF BUSINESS.
DO YOU SEE THAT SCALE
INCREASING AS WELL OVER TIME?
>> SCALE CANS SOMETIMES BE
ADVANTAGE SOMETIMES A
DISADVANTAGE SPEED MATTERS A
LOT CREATIVITY MATTERS A LOT I
AM PROUD HOW OUR TEAM IS
RESPONDING CREATE SOLUTIONS
FOR COMMERCE WHETHER WALMART
GROWS IS UP TO THEM WE ARE
SERVING FAMILIES MOMS,
DADS, SERVING COMMERCE THAT
HAVE A LOT OF DIFFERENT
CHOICES EVEN DURING THE
PANDEMIC PERIOD.
WITH E-COMMERCE ALL CHAINS
OPEN STILL A LOT OF CHOICE, SO
WE’VE GOT TO COMPETE TO EARN
THEIR BUSINESS EVERY DAY, AND
THAT IS THE APPROACH THAT WE
TAKE, OUR TEAM HAS REALLY
STEPPED UP DURING THIS PERIOD,
EVEN BEFORE THE PANDEMIC, TO
DRIVE CHANGE CREATE MORE
SOLUTIONS FOR COMMERCE.
>> DOUG HOW ARE YOU
POSITIONING WALMART IN THE
FACE OF WHAT SEEMS LIKE AN
ECONOMIC COLD WAR WITH CHINA?
OBVIOUSLY, THE PRODUCT MANY
ARE MADE IN CHINA, YOU ARE
ABLE TO PASS ON GREAT COST
SAVINGS TO CUSTOMERS BECAUSE
SO MUCH CHEAPER IN CHINA THAN
ELSEWHERE THE PRESIDENT SAID
YESTERDAY HE IS DONE WITH
CHINA.
ARE YOU MAKING CHANGES HOW ARE
YOU POSITIONING THE COMPANY IN
THE CASE OF ALL OF THIS?
>> WELL IT IS, OBVIOUSLY, A
VERY IMPORTANT RELATIONSHIP.
THE RELATIONSHIP BETWEEN U.S.
AND CHINA.
WE BUY PRODUCTS OUT OF CHINA
BUT U.S. TWO-THIRDS WHAT WE
SELL IS MADE IN THE UNITED
STATES.
IN ADDITION TO CHINA WE BUY
GOODS FROM A LOT OF OTHER
COUNTRIES MEXICO CANADA BIG
INDIA VIETNAM FEW OTHER
COUNTRIES MAINLY U.S. SOURCED
BUT WE DO HAVE A DISTRIBUTED
SUPPLY CHAIN AROUND THE WORLD
CHINA PLACE AN IMPORTANT ROLE
IN THAT WE WITH HAVE ALSO
STORES IN CLUBS E-COMMERCE
INVESTMENT IN CHINA OVER 400
STORES IN CLUBS THERE SINCE
1996 ABLE TO INVEST IN CHINA
GROW A BUSINESS, SERVE
COMMERCE THERE, AS WE DO IN 27
COUNTRIES AROUND THE WORLD, WE
THINK THAT IS A POSITIVE.
SO IT IS OUR HOPE THAT THESE
COUNTRIES WILL WORK TOGETHER,
THIS ADMINISTRATION AND IN
YEARS TO COME, TO FIND WAYS,
TO HAVE A COLLABORATIVE
RELATIONSHIP WHERE WE SHOULD
CLEARLY THERE ARE ISSUES
BETWEEN COUNTRIES THAT NEEDED
TO BE SOLVED WE LEAVE THAT TO
LEADERS TO SORT OUT AS RELATES
TO TRADE WE THINK COUNTRIES
THAT TRADE TOGETHER TEND TO
SOLVE PROBLEMS MORE PEACEFUL
MATTER WE THINK POSITIVE WE
WANT TO BE ABLE TO DO BUSINESS
IN CHINA I KNOW A LOT OF
AMERICAN BUSINESSES FARMERS
WANT TO AS WELL REALLY
IMPORTANT WE TALK TO EACH
OTHER WORK THROUGH THE ISSUES
THAT WE HAVE.
>> WHAT RECUR EXPECTATIONS FOR
SECOND HALF OF THE YEAR DO YOU
THINK WE WILL SEE A BOUNCEBACK
IN THE ECONOMY?
OBVIOUSLY, THAT CONTRACTION
SECOND QUARTER WAS PRETTY
SEVERE ALMOST 33%.
>> HARD TO CALL I THINK GOING
TO BE VOLATILE THE ANSWER IS
IT DEPENDS, YOU KNOW AS
COUNTRY WE CAN LEARN HOW TO GO
BACK TO WORK, SOME BUSINESSES
HAVE, IN A SAFE WAY KEEP OUR
ECONOMY MOVING, WHILE
PROTECTING PEOPLE AGAINST
THEIR PANDEMIC AND HEALTH
CRISIS WE ARE EXPERIENCING,
THAT IS GOING TO GO A LONG WAY
THEN THE GOVERNMENT CHOICES
RELATED TO STIMULUS STAGE IV
CONVERSATION GOING ON REALLY
IMPORTANT, THAT SMALL
BUSINESSES IN PARTICULAR BE
ADDRESSED, WHEN WE LOOK AT
WHAT IS HAPPENING IN THE
ECONOMY, THE BIG BUSINESSES
WALMART INCLUDED WE ARE
LATITUDE MORE CONCERNED ABOUT
WHAT IS HAPPENING WITH SMALL
BUSINESSES THAN WE ARE THE BIG
BUSINESSES WE HOPE GOVERNMENT
WILL COME TOGETHER SOON WITH A
HE COMPREHENSIVE PLAN TO HELP
SMALL BUSINESS GET BACK ON ITS
FEET.
MARIA:  YEAH, I SAID ON THE
EARNINGS CALL YESTERDAY THAT
STIMULUS WAS A BIG PART OF THE
TAILWINDS THAT AFFECTED A
SECOND QUARTER HEAR WE ARE
WAITING ON STIMULUS PACKAGE
WHAT SHOULD CEOS EXPECT FROM
THE LATEST ROUND OF STIMULUS
WHAT DO YOU THINK IS REALLY
CRITICAL TO BE IN THAT RIGHT
NOW, WHILE THE DEMOCRATS AND
REPUBLICANS TRY TO WORK THIS
OUT?
>> YEAH, WHEN YOU LOOK AT
SECOND QUARTER FOR THE RETAIL,
MARIA THE STIMULUS CHECKS, THE
FACT THAT FEWER PEOPLE GOING
OUT TO EAT EVERYONE AT HOME
THERE WERE A NUMBER OF
TAILWINDS THAT HAVE DRIVEN THE
RETAIL BUSINESS IN THE A
SECOND QUARTER YOU CAN SEE
THAT IN ALL THE RESULTS,
LOOKING AHEAD, I DO THINK THAT
THIS FOCUS ON SMALL
BUSINESSES, PEOPLE THAT REALLY
NEED THE HELP,, YOU KNOW,
PEOPLE ASK ME, WHAT DO I SEE
IN THE ECONOMY, WHAT ARE
CUSTOMERS TELLING US, I WOULD
SAY THERE IS A LOT OF
VARIANCE, THERE ARE SOME
PEOPLE WHO HAVE CONTINUING TO
HAVE A JOB THAT CONTINUE TO BE
PAID WORKING FROM HOME, THERE
ARE OTHER PEOPLE HAVING TO GO
TO WORK BECAUSE THEY ARE ON
FRONT LININGS SERVING SOME WAY
LIKE OUR NEGOTIATES ARE DOING
OTHER PEOPLE LOST JOBS IN
WALMART, THE TOTAL, GLOBAL,
WE’VE NOW HIRED SINCE THE
MIDDLE MARCH 500,000 PEOPLE
MORE THAN 500,000 PEOPLE, NEW
ASSOCIATES TO JOIN WALMART A
LOT OF THOSE PEOPLE LOST JOBS
SOMEWHERE MORE THAN HALF OF
THEM ARE TEMPORARY THEY JUST
JOINED US DURING THIS PANDEMIC
PERIOD HELPING US, PICK ORDERS
FROM STORE FOR DELIVERY TO
HOME, FOR EXAMPLE, BUT MOST OF
THOSE FOLKS ARE GOING BACK TO
THEIR JOBS, WORKING IN A
RESTAURANT WHEREVER THEY CAME
FROM WE ARE GOOD WITH THAT WE
THINK GREAT WE ARE GLAD WE
WERE ABLE TO HELP OUT DURING
THIS PERIOD HE THEY’VE GOT TO
HAVE JOBS TO GO BACK TO WE
