Wal-Mart notebook

McMillon: Moving slow, sure online

For all the billions of dollars that Wal-Mart Stores Inc. has pumped into its e-commerce business in recent years, the company has been reluctant to put much of those resources into in-store marketing of its expanding array of digital services.

CEO Doug McMillon said Friday during a question-and-answer session with reporters after the company's annual shareholder's meeting that Wal-Mart is taking it slow with promotion. McMillon mentioned taking a patient approach with drawing in-store customers' attention to online options while addressing a recent slow-down in e-commerce sales.

"Most stores today, if you go in, you don't see a lot of communication around our app, for example," McMillon said. "We're just starting to do some of that because confidence is increasing that the customer experience will be good. So it's just a journey to put all those pieces in place. We would like to be growing faster than we are right now."

Wal-Mart's e-commerce grew by 7 percent during the first quarter of its current fiscal year. The company reported e-commerce growth of 22 percent for its 2015 fiscal year and executives noted during a recent earnings report that they were disappointed with the slower pace.

McMillon said the work on the user experience is getting closer to where it needs to be online. Wal-Mart is continuing to use data to figure out what merchandise to offer online and trying to perfect the "fundamental building blocks."

Global e-commerce CEO Neil Ashe noted the company's U.S. website now has 87 million unique visitors, placing it as the second-largest online retailer in the country behind Amazon.com.

"That's a great foundation for us to grow from," Ashe said. He also mentioned the company's rapidly expanding grocery pickup business as proof "we're getting better at this."

Chairman target of comic's ribbing

Comedian James Corden made Wal-Mart executives a frequent source of his material while hosting the annual shareholders meeting Friday at Bud Walton Arena in Fayetteville.

Nobody took more of a ribbing, though, than Chairman of the Board Greg Penner, the son-in-law of Rob Walton. Penner succeeded Walton as board chairman last year.

Corden, host of The Late, Late Show on CBS, repeatedly hinted that Penner's role only came about because of his marriage to Carrie Walton Penner.

"The next man coming to the stage is married to Rob Walton's daughter. But that's not how he got his job," Corden said. "It's not. Stop it. It isn't. He got his job because he worked really, really hard.

"He did. He worked tirelessly at marrying Rob Walton's daughter."

Cameras caught Penner chuckling and shaking his head during the jokes.

In addition to Corden, who also repeatedly referred to McMillon's youthful appearance, singers Katy Perry, Maxwell and Andy Grammer performed. Perry, who closed out the show, has a cosmetics line that will soon be carried in Wal-Mart stores.

Foreign-reporting proposal fails vote

Wal-Mart was recognized earlier this year by the Human Rights Campaign for the company's positive treatment of lesbian, gay, bisexual and transgender employees. It drew attention nationally after issuing a statement in 2015 urging Gov. Asa Hutchinson to veto legislation titled the Religious Freedom Restoration Act because of concerns that the bill would allow for discrimination against LGBT workers.

That support of LGBT causes nationally was used against the retailer during remarks made by Justin Danhof of the National Center for Public Policy Research. Danhof, the organization's general counsel, was speaking on behalf of a shareholder's proposal that requested Wal-Mart begin reporting on its operations in "high-risk" regions.

"Wal-Mart operates in nations where homosexuality is outlawed. In some of those countries, homosexual acts are punishable by death," Danhof said. "Women have almost no rights in some of these places. And try getting a fair trial in many of these nations. What's diverse and inclusive about that?"

The proposal garnered only 0.69 percent of shareholder votes Friday, failing to pass. Also failing to pass were shareholder proposals related to appointing an independent board chairman and a report on annual incentive compensation plans.

Man's promotion made on podium

Dwight Blanton of Jacksonville was promoted to assistant manager of his local Wal-Mart Supercenter during McMillon's keynote address.

Blanton, 23, recently applied for the position. He's been at Wal-Mart the past five years and was lauded by McMillon for his military service.

"You know, a lot gets said about Wal-Mart," McMillon said. "What I see is a lot of special people in this company like Dwight -- people who are working hard to build a better life for themselves and for their families."

Wal-Mart promoted 250,000 employees last year. McMillon, who has been with the company 25 years, told the audience that 75 percent of the company's U.S. store management started as hourly employees.

Business on 06/04/2016