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Message from the President – Goals for 1974
It’s that time of year again. A new Wal-Mart year about to begin as of February 1, 1974, and with it we must all begin to target in on certain objectives and goals if we are to keep our program and momentum rolling in high gear.
From the beginning of our history as a Company we’ve always set our goals high, and generally have never been satisfied with anything less than number one. I feel that we are regarded as the number one regional retail discount chain in the United States today. As we grow from $168,000,000 in sales in ’73 to the $225,000,000 range in ’74, and on higher in the 70’s, we’ll begin to emerge as a national company, competing at all levels with all comers.
Thus, with these increasing numbers, size and competition, we’ve got to further increase the effectiveness of our Wal-Mart program. These are some specific objectives that I feel are most important for us in 1974.
- Number one as always in retailing is improved turnover of merchandise. We’ve done better in 1973, and I know our Merchandise Department, Jim Elliott, Merchandise Controller, and our merchandise team at the stores will continue to work on our system to get our turnover and sales up, and dollar investment down during 1974. Let this objective be uppermost with all of us during the coming year, regardless of our capacity with the Company.
- We must increase our sales per square foot in our stores, and at the same time control expenses in every conceivable way. Even at best in this coming year, I do not feel we can hold our expense structure at zero $ (dollar) increase. We, like everyone else, are caught in the inflation spiral. Our best alternative is to hold our percentage expense ratio as is, with an increase in sales productivity; and I think we can achieve this goal. So, in each store, in each department, let’s strive to increase sales by 10% or more in 1974 over 1973. You each know what you have to do to reach this goal. Tough, sure – but I know we can do it. Then we can let some expenses rise dollar-wise, but be right percentage-wise and profit-wise.
As a Company, I think we should avoid the easy way out that many companies take – that is, they simply raise prices and gross margins when expense pressures increase. Our best course, and I know you’ll agree, is to maintain these low, low prices that are Wal-Mart’s trademark and continue to undersell our competitors on comparable merchandise; And do it the hard way by regularly turning your merchandise, controlling expenses, and increasing sales productivity.
I have a very positive feeling about 1974. In fact, as the current TV commercial goes – “We’ve got ya!”
1974 is in the bag for Wal-Mart because we’ve got the people, the program, and the team!
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