Walmart is testing a new system to better manage fruit supply

by Talk Business & Politics staff (staff2@talkbusiness.net)

Walmart is partnering with Israel-based Agristask, a crop supply chain company, to test the effectiveness of artificial intelligence (AI) technology in sourcing fresh fruit such as blackberries and cherries.

Agritask’s remote sensing and data analytics tools can help sourcing managers at Walmart make better decisions on seasonal fruit crop yields. Walmart said the Insights will include immediate alerts on emerging or forming risks and their potential impact on target crops, real-time assessment of timing, delays, or advances in expected harvest, and updated indications on meeting yield targets throughout the growing season.

“Dealing with challenges in purchasing and planning accuracy in agriculture due to data discrepancies and environmental uncertainties can be tough,” said Kyle Carlyle, vice president of sourcing innovation and surety of supply at Walmart. “Agritask’s technology has the potential to fill vital information gaps that sourcing managers often face when predicting yield.”

Walmart is testing a new system to better manage fruit supply

Walmart boss says company ‘can’t get comfortable’ with recent success

by Kim Souza (ksouza@talkbusiness.net)

Walmart CEO Doug McMillon speaks to the media Friday (June 7) following the shareholders meeting in Fayetteville.

Walmart CEO Doug McMillon challenged the 2.2 million employees around the world to go for the gold like Simone Biles, win championships like NFL quarterback Peyton Manning, or NBA star Michael Jordan. He said focusing on past success is not a ticket to future prosperity.

McMillon made the challenge at the company’s 54th annual shareholders meeting held at the University of Arkansas’ Bud Walton Arena on Friday (June 7). Around 14,000 Walmart employees, shareholders and others attended the event and millions streamed online.

Dylan Beard of North Carolina is a Walmart employee, a recent college graduate, and an Olympic qualifier. Beard joined McMillon on stage. McMillon said Beard’s personal best run in the trials is a great example of reaching full potential.

Walmart boss says company ‘can’t get comfortable’ with recent success

Walmart cutting corporate jobs, recalls some remote workers (Updated)

by Kim Souza (ksouza@talkbusiness.net)

Several hundred jobs are being cut at Walmart’s home office and its global tech operations. The layoffs in Bentonville began Monday (May 13), according to people familiar with the matter. Merchandising operations are being reorganized with some cuts in associate merchant jobs.

Updated info: Walmart Chief People Officer Donna Morris sent the following statement Tuesday (May 14) to employees.

“It has been a little over four years since we faced the global pandemic that reshaped our lives in many ways, including our ways of working. In February 2022, we made the decision to bring Home Office associates back into our campus offices. We believe that being together, in person, makes us better and helps us to collaborate, innovate and move even faster. We also believe it helps strengthen our culture as well as grow and develop our associates.

“With the goal of bringing more of us together more often, we are asking the majority of associates working remotely, and the majority of associates within our offices in Dallas, Atlanta, and our Toronto Global Tech office, to relocate. Most relocations will be to our Home Office in Bentonville, but some will be to our offices in the San Francisco Bay Area or Hoboken/New York.

Walmart cutting corporate jobs, recalls some remote workers (Updated)

Walmart shutters 51 health centers and ends virtual care service

by Kim Souza (ksouza@talkbusiness.net)

Walmart’s experiment in the muddled healthcare sector ended abruptly Tuesday (April 30) when the retailer reversed course and announced it is closing healthcare centers and ending its virtual care service.

The 51 Walmart Health centers are across five states, including two in Northwest Arkansas and one in Fort Smith. A timeline for closing was not disclosed.

Walmart launched its health centers in 2019 and said the five years brought meaningful lessons, pivoting, and trying to evolve ways to help customers better navigate primary care. However, the “challenging reimbursement environment and escalating operating costs” made the venture unsustainable for the retail giant.

Walmart shutters 51 health centers and ends virtual care service

A Walmart Health Clinic coming to Rogers at Store No. 1 at 2110 W. Walnut Street.

Rob Walton to step down from Walmart board

by Kim Souza (ksouza@talkbusiness.net)

Rob Walton, the oldest son of Walmart founders Helen and Sam Walton, has been a fixture on Walmart’s board of directors for more than four decades. But he is not seeking re-election, according to his son-in-law, board chairman Greg Penner.

Penner made the announcement in the company’s annual proxy report filed Thursday (April 25) with the U.S. Securities and Exchange Commission.

Walton, 79, joined Bentonville-based Walmart Stores in 1969 and worked as the company’s corporate secretary and general counsel after working as a private attorney. Walton was board vice chairman and chairman until resigning from that post to Penner in 2015. He was involved in the process of taking Walmart public in 1970.

Rob Walton to step down from Walmart board

Rob Walton

Combined pay for Walmart’s top six execs was $96.724 million last year

by Kim Souza (ksouza@talkbusiness.net)

The top six executives at Walmart saw higher compensation last year of a combined $96.724 million, or $264,997 per day. Most of the compensation is deferred or in stock options and shares, but salaries and bonus pay among the top six was $12.741 million or $34,906 per day.

According to the company’s proxy statement filed Thursday (April 25) with the U.S. Securities and Exchange Commission, CEO Doug McMillon saw his annual salary increase 2.32% to $1.505 million. He also earned a cash bonus of $4.5 million, up from $3 million the prior year. When adding in deferred stock compensation and other benefits, McMillon’s total compensation rose to $29.968 million, up 6.56% from the prior year.

According to the company’s proxy, McMillon’s salary is in line with that of 26 peer companies with more than $100 billion in revenue, including Walt Disney, Target, Amazon and Home Depot.

Combined pay for Walmart’s top six execs was $96.724 million last year

Walton family sells $1.5 billion of stock in recent transaction

by Kim Souza (ksouza@talkbusiness.net)

The Walton family continues to sell Walmart stock to keep its holding below 50% of the total stock. Last week ahead of the 3:1 stock split, Walton Family Holdings Trust sold roughly 8.82 million shares.

Transaction information was from filings with the U.S. Securities and Exchange Commission on behalf of Rob, Alice and Jim Walton. The transactions were valued at $1.5 billion and represent a fraction of the Trust’s share value in excess of $177.588 billion following the recent activity. In the past three months, the Walton Family Trust has sold nearly $2.3 billion of its stock holdings as Walmart’s share price rose more than 12% this year.

The sale transactions are in line with the Walton family’s 2016 pledge to keep its holdings slightly below 50% of the company’s outstanding shares. The family’s holdings are roughly 45% of the total company shares.

Walton family sells $1.5 billion of stock in recent transaction

Walmart confirms $2.3 billion Vizio deal; Walmart Connect to benefit

After a week of speculation, Walmart on Tuesday (Feb. 20) confirmed it has agreed to acquire television/media brand Vizio for $2.3 billion. The offer is $11.50 per share in cash and Vizio’s board of directors unanimously approved the planned deal.

The deal for the Irvine, Calif.-based company is expected to be completed this year with a short-term dilutive impact on earnings but long-term growth overall for its advertising business Walmart Connect.

If the deal goes through, Walmart would command more than one-fifth of the television market in the U.S. between Vizio and its existing Onn in-house brand, which is powered by Roku’s operating system, according to Statista. It is unclear if that will change once the merger is complete. Almost 70% of Vizio’s TVs are already sold at Walmart, according to the company’s regulatory filings. The acquisition would also give Walmart access to Vizio’s user base of nearly 18 million active users, ad viewership data and potentially the ability to track purchases of those ad views to products sold in Walmart stores.

Walmart confirms $2.3 billion Vizio deal; Walmart Connect to benefit

Walmart confirms $2.3 billion Vizio deal; Walmart Connect to benefit

by Kim Souza (ksouza@talkbusiness.net)

After a week of speculation, Walmart on Tuesday (Feb. 20) confirmed it has agreed to acquire television/media brand Vizio for $2.3 billion. The offer is $11.50 per share in cash and Vizio’s board of directors unanimously approved the planned deal.

The deal for the Irvine, Calif.-based company is expected to be completed this year with a short-term dilutive impact on earnings but long-term growth overall for its advertising business Walmart Connect.

If the deal goes through, Walmart would command more than one-fifth of the television market in the U.S. between Vizio and its existing Onn in-house brand, which is powered by Roku’s operating system, according to Statista. It is unclear if that will change once the merger is complete. Almost 70% of Vizio’s TVs are already sold at Walmart, according to the company’s regulatory filings. The acquisition would also give Walmart access to Vizio’s user base of nearly 18 million active users, ad viewership data and potentially the ability to track purchases of those ad views to products sold in Walmart stores.

Walmart confirms $2.3 billion Vizio deal; Walmart Connect to benefit

The Supply Side: Walmart Connect targets $6B in ad revenue by 2025

by Kim Souza (ksouza@talkbusiness.net)

With more than 4,700 retail U.S. stores, Walmart has 139 million customers each week in stores and online. Walmart is leveraging its scale to entice advertisers who can bundle in-store and online advertising with Walmart Connect, the retail giant’s internal agency.

Shoppers nationwide can see more third-party ads on screens in Walmart self-checkout lanes and the TV wall at the back of the store. Radio ads are also part of the offering with Walmart Radio, played in stores and demo spaces where employees can give out sample items. These in-store marketing efforts can be married with several advertising options for brands on Walmart.com and its social media partners like TikTok and Facebook.

Walmart has been ramping up in-store ads using its approximately 170,000 digital screens in its stores and 30-second radio spots that the retailer can use to target a specific store or region. Walmart also sells demo stations where samples are handed out for everything from cereal bars to pizza bites and yogurt. QR codes at the demo tables allow shoppers to access online shopping options, meal ideas and seasonal information.

The Supply Side: Walmart Connect targets $6B in ad revenue by 2025

Market watchers expect strong quarterly report from Walmart

by Kim Souza (ksouza@talkbusiness.net)

Walmart is expected to outperform analysts’ expectations on the top and bottom lines when it reports fourth quarter and fiscal 2024 earnings on Tuesday (Feb. 20) ahead of the market opening.

Consensus estimates have crept up in the past few weeks to $1.66 per share for the last quarter of the year. That would equate to net income of roughly $4.482 billion for the quarter, up 3.9% from a year ago. Revenue is forecast at $168.804 billion, up 2.6% year over year.

For the full fiscal year, analysts expect net income of $17.584 billion or $6.51 per share, up 3.7% from the prior year. Revenue is forecast to have grown 5.2% to $642.988 billion for the year.

Market watchers expect strong quarterly report from Walmart

The Supply Side: Veteran-owned brand making waves at Walmart

by Paul Gatling (pgatling@nwabj.com)

Grind toothpaste brand hit select Walmart stores earlier this year. Starting with 365 stores in February and expanding to 453 stores by summer, a co-founder of the Salt Lake City-based company is eager to continue growing the business.

Roger Gindlesperger, co-founder and co-owner of Grind, said it took him three tries to get into Walmart’s Open Call. He applied in 2020 and 2021, but it was 2022 before he got an invitation.

“We married hydroxyapatite and theobromine together to provide the same benefits as fluoride without the risks. We have a patent pending on that process. Grind has natural whitening agents, hardening agents and six minerals to fight bacteria, plaque buildup and inflammation,” he said.

The Supply Side: Veteran-owned brand making waves at Walmart

New Sam’s Club CEO has global experience, got an early start in retail

by Kim Souza (ksouza@talkbusiness.net)

Chris Nicholas, incoming Sam’s Club CEO

Chris Nicholas began working in retail at the age of 14, pricing goods and working in back rooms. The stage will get much bigger on Sept. 11 when he steps into the top job at Sam’s Club.

He will leave behind his role as chief operating officer for Walmart U.S., a position he held since October 2021. Nicholas joined Walmart in 2018 and worked for the first three years as the chief financial officer for Walmart International. Then he worked in the U.S. business before Walmart U.S. CEO John Furner tapped him for an operational role as the No. 2 executive for U.S. stores.

“I fell in love with retail very early because I felt we could always make a difference in retail. I grew up in an environment where no one had much money,” Nicholas said a year ago in an episode of “The Huddle” with Furner. “I have worked in retail in nine different countries. I have run businesses, I have been the CFO for different businesses, whether that’s in Europe, in the U.S., or over in Australia, and there is something that’s really common about retail which is that the customers will tell you what they want.”

https://talkbusiness.net/2023/08/new-sams-club-ceo-has-global-experience-got-an-early-start-in-retail/

The Supply Side: Arkansas rice farmer part of Walmart’s sustainable farm focus

by Kim Souza (ksouza@talkbusiness.net)

Dustin Faulkner, a third-generation Arkansas farmer, is part of an aggressive plan by the world’s largest retailer to save billions of gallons of water in rice farming.

Faulkner lives south of Jonesboro in Harrisburg, where he oversees 26 Ditch Farm Partnership with his wife Kristy and teenage daughters Alyson and Abby. The family farms around 3,500 acres, with about one-third of that being rice he sells to Walmart. He also sells rice and wheat to beer maker Anheuser-Busch while improving sustainable farming practices.

He said running a regenerative farm is important because the land and its resources must be preserved for future generations. He was introduced to Walmart by third-party sustainability partner Indigo Ag, whose mission is to connect farmers to higher-valued markets while using sustainability practices.

https://talkbusiness.net/2023/06/the-supply-side-arkansas-rice-farmer-part-of-walmarts-sustainable-farm-focus/

Dustin Faulkner walks his 3,500-acre farm in Harrisburg just south of Jonesboro inspecting the growth of rice that will be sold to Walmart for its Great Value Long Grain brand. Faulkner has been selling rice to Walmart since 2021 and is one of several farms in the region taking part in sustainable farm practices.

Walmart AMP transitioning to digital tickets

by Talk Business & Politics staff (staff2@talkbusiness.net)

Digital tickets will be the default method of delivery for the 2023 season at the Walmart Arkansas Music Pavilion (AMP) in Rogers. The change was announced Monday (March 20) in a news release.

Digital tickets are secure, paperless tickets accessible on a smartphone. According to the release, patrons will access their tickets by logging in to a personalized, online ticket wallet with the same username or email and password they use to purchase tickets.

Digital tickets will be delivered to a ticket wallet immediately upon purchase and can be securely shared. They use a rotating QR code so patrons know they have a valid ticket, and it reduces the ability to counterfeit tickets. The rotating QR code for each ticket will be delivered within 24 hours of the performance start time or at a time specified by the tour.

https://talkbusiness.net/2023/03/walmart-amp-transitioning-to-digital-tickets/

Jewel performs at the Walmart AMP in Rogers in 2022. The venue's ticket sales were up 71% from last year.

Walmart to pay $3.1 billion to settle opioid litigation

KUAR | By Kim Souza / Talk Business & Politics

Walmart has reached a settlement in litigation relating to the national opioid epidemic totaling $3.1 billion. The settlement will effectively resolve all opioid lawsuits by state, local and tribal governments, according to the retailer.

The hefty settlement dinged Walmart’s earnings per share by $1.11 in the third quarter, helping to drive a net loss of 66 cents per share for the retail giant. The deal also comes on the heels of settlements reached by competitors Walgreens and CVS last week totaling $10 billion.

“Walmart believes the settlement framework is in the best interest of all parties and will provide significant aid to communities across the country in the fight against the opioid crisis, with aid reaching state and local governments faster than any other nationwide opioid settlement to date, subject to satisfying all settlement requirements,” the company noted in the release.

https://www.ualrpublicradio.org/local-regional-news/2022-11-16/walmart-to-pay-3-1-billion-to-settle-opioid-litigation

./Walmart

The Arkansas-based company is the latest retailer to agree to a settlement over the dispensing of addictive opioid medications. Walmart had previously vowed to fight the litigation.

The Supply Side: Drone delivery among retailers becomes more prevalent

by Kim Souza (ksouza@talkbusiness.net)

Once seen as a small possibility, drone delivery for online orders has become a reality for Walmart and some of its competitors. Drone deliveries are increasing with ongoing investments among big retailers following more leeway from the Federal Aviation Administration (FAA).

Walmart has tested drone deliveries with various partners for the past two years but more recently ramped up investments in the final-mile delivery method following the guidelines released by the FAA in January 2021.

Walmart announced in May 2022 that it was expanding its investment with DroneUp to 34 sites by the end of the year. The drone towers have become fixtures at local Walmart stores in Pea Ridge, Store 100 in Bentonville, and the Walmart Neighborhood Market store in Farmington.

https://talkbusiness.net/2022/09/the-supply-side-drone-delivery-among-retailers-becomes-more-prevalent/

Walmart issues $5 billion in new debt; partners with UnitedHealth Group

Walmart seeks to raise $5 billion in operating capital through four separate bond issues ahead of expected Federal Reserve interest rate hike. Also, the Bentonville-based retailer announced Wednesday (Sept. 7) a partnership with UnitedHealth Group.

A filing with the U.S. Securities and Exchange Commission showed the bonds include $1.75 billion at 3.9% due in 2025, $1 billion at 3.95% due in 2027, $1.25 billion at 4.15% due 2032 and $1 billion at 4.5% due 2052. Walmart should net roughly $4.971 billion from the bonds. Walmart debt is rated AA by Standard & Poor’s and Aa2 by Moody’s, each seen as Prime credit level quality.

Other retailers have also issued debt to raise capital ahead of higher interest rates many think are coming when the Federal Open Market Committee meets Sept 20. Wall Street expects the Fed to raise rates 0.75% following the meeting. Target recently issued $1 billion in bonds due in 2032, and McDonald’s announced bond issues totaling $1.5 billion due in 2032 and 2052. In April, Amazon sold $12.75 billion of investment-grade bonds for general corporate purposes.

https://talkbusiness.net/2022/09/walmart-issues-5-billion-in-new-debt-partners-with-unitedhealth-group/

A Walmart Health Clinic coming to Rogers at Store No. 1 at 2110 W. Walnut Street.

Walmart tries again to improve beef offering in stores

by Kim Souza (ksouza@talkbusiness.net)

Walmart has over the years made several attempts to improve the beef quality it sells. Last week, the retail giant invested a minority stake in Sustainable Beef, a rancher and beef producer-owned company that sells Angus beef into retail.

Walmart did not disclose the amount of the investment but said the deal will increase the amount of quality Angus beef it sells.

The deal calls for Sustainable Beef to open a processing center in North Platte, Neb. They will break ground next month and create about 800 jobs in that community. Lehr said Walmart will get a majority of the beef produced at the new facility which is expected to open in late 2024. With the investment, Walmart also gets a board seat at Sustainable Beef.

https://talkbusiness.net/2022/09/walmart-tries-again-to-improve-beef-offering-in-stores/

Walmart sued by Federal Trade Commission

by Kim Souza (ksouza@talkbusiness.net)

The U.S. Federal Trade Commission (FTC) said Tuesday (June 28) that it sued Walmart Inc., alleging the retailer allowed scam artists to access its money transfer services, resulting in fraud that cost consumers “tens of millions of dollars” each year.

The complaint said that for years Walmart did not adequately train employees, failed to warn customers and used procedures that allowed fraudsters to cash out at its stores.

“While scammers used its money transfer services to make off with cash, Walmart looked the other way and pocketed millions in fees,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “Consumers have lost hundreds of millions, and the Commission is holding Walmart accountable for letting fraudsters fleece its customers.”

https://talkbusiness.net/2022/06/walmart-sued-by-federal-trade-commission/