Chief Executive Officer Doug McMillon spoke about initiatives like
online grocery pick up, the retailer's two-day shipping program and
its mobile wallet, Wal-Mart Pay. His comments capped off a week-long
media event where the company displayed drones in warehouses and
announced a partnership with Uber to deliver online groceries.
"We get to reimagine retail again, and that's what we are going to
do," McMillon said. He also said changes to boost e-commerce sales
will take some time to show results.
Wal-Mart onlines sales growth has sharply decelerated for five
quarters even though its overall performance has been better than
most competitors.
In the first quarter, online sales growth was 7 percent, down from 8
percent, 10 percent, 16 percent and 17 percent in the previous
periods. In 2015, Wal-Mart's online sales rose 12.3 percent to $13.7
billion, which was less than the jump of more than the 16 percent
for market leader Amazon.com Inc, to $92.4 billion.
The meeting at the Bud Walton Arena in Fayetville, 30 miles from the
company's headquarters in Bentonville, was packed with 14,000
people, including workers from around the world and shareholders.
Keeping with its practice of showcasing celebrities at the annual
event, the meeting was hosted by talk show host James Cordon.
Singers like Katy Perry, Andy Grammar and Nick Jonas also performed
on stage.
The enthusiastic atmosphere momentarily turned somber after two
shareholder proposals demanded higher wages, better treatment of
employees and an independent chairman. The proposals did not get
adequate votes.
Wal-Mart in February 2015 said it will lift its base pay to $10 an
hour in 2016, a step it has implemented this year. Labor groups feel
this is not enough.
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Union backed group OUR Wal-Mart kept up pressure, and its workers met McMillon
earlier this week, delivering a petition demanding higher wages signed by
several thousand Wal-Mart workers.
The United Food and Commercial Workers Union published a full-page advertisement
in a national newspaper on Friday asking shareholders to focus on struggling
workers.
Labor groups have been demanding $15 an hour from retailers including Wal-Mart.
The $15 minimum wage, also called "Fight for Fifteen" movement, has been a hot
issue in cities across the country as well as in the U.S. presidential campaign,
with Democratic candidate Bernie Sanders calling for a $15 “living wage.”
(Reporting by Nandita Bose in Fayetteville Arkansas; Editing by David Gregorio)
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