Bloomberg reports that Walmart’s new CEO, John Furner, has sent employees his first company-wide memo, saying that he had a “simple ask: Tell me one thing that slows you down or makes it harder to do your job.”
According to the story, “The 51-year-old Walmart lifer will spend his first weeks visiting stores, supply-chain facilities and support offices around the world, according to the memo, which was viewed by Bloomberg. He said he’ll talk directly with workers to understand what improvements are needed.”
Furner may hear from a lot of people: “Walmart has about 2.1 million employees, including 1.6 million in the US, where it is the biggest private employer.”
Bloomberg notes that “Furner is looking to define his agenda as the company reaches a high point: Walmart just hit $1 trillion in market valuation and strides in e-commerce have allowed it to broaden its customer base to newer, wealthier customers. The company is now looking to integrate artificial intelligence across its operations.”
The New York Times assesses Walmart’s moment this way, noting that it is “the first traditional retailer to hit the milestone and joining a small club mostly made up of technology giants such as Apple and Microsoft.
“The nation’s largest retailer is known for its supercenters and low prices that have lately pulled in even higher-income consumers. Investors have been drawn to the company’s rapid e-commerce growth in recent years and push into automation and artificial intelligence. Walmart’s stock has climbed about 28 percent over the past year, outpacing the S&P 500 index’s 15 percent gain during the same period.
“‘Walmart management was prescient in building out a business model optimized for this moment,’ said Sarah Henry, managing director and portfolio manager at Logan Capital Management, an investment management company. ‘Their rebuilding recast their image as much as a technology company, as they are a retailer’.”
The Times points out that “the company has pitched itself to investors as a ‘technology-forward’ company, moving its stock listing from the New York Stock Exchange to the Nasdaq, where many of the largest tech companies are listed.
But even Walmart’s reputation of offering low prices as a traditional retailer has worked in its favor lately, benefiting from consumers seeking big discounts to help offset the fast inflation and new tariffs that are straining their budgets. And wealthier shoppers have been attracted to Walmart’s expanding online offerings that include apparel and furniture.”
KC’s View:
Easy question: Who has the better job right now, Furner or Target’s new CEO, Michael Fiddelke?
Like I said, easy question. One is in a game where he has all aces, and the other has to figure out exactly what the game is.
Furner has the luxury of being able to focus on the front lines, but in many ways, there can be no more important agenda item than letting employees – especially front-line store employees who serve as Walmart’s brand ambassadors to customers – know that he is prioritizing making it easier for them to be more productive. That’s a powerful message, especially coming from the world’s biggest retailer. I wonder how many employees at far smaller stores and businesses believe that their bosses are equally concerned about such issues.
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