Fayetteville, Ark., June 6 - From Wal-Mart under fire to Wal-Mart leading the world -- The contrast between Wal-Mart Stores Inc's shareholder meeting last year and Friday's annual meeting one was a stark one.
Wal-Mart used its latest gathering of shareholders on Friday as a time to congratulate itself for getting U.S. sales back on track, while indulging in nostalgia for its founder, Sam Walton and touting its potential to be a leader in solving issues facing consumers worldwide.
"It is clear that today people look at Wal-Mart as a solution. And we want to be seen that way and we want to act that way," Chief Executive Officer Lee Scott told the crowd gathered in the 16,000-seat arena for the meeting.
That is a major change from a year ago, when the gathering took place as Wal-Mart faced a lagging share price, slowing U.S. sales growth, attacks by union-backed organizations for its pay and health benefits, and questions over Scott's leadership.
A year ago when Wal-Mart Chairman Robson Walton got up to speak at the event, he had to take the time to publicly express his confidence in Scott.
This year when he got up to speak, he talked about how his father and Wal-Mart founder, Sam Walton, would have been proud of the work the retailer was doing.
"We will always be the kind of company that my dad wanted us to be, swimming upstream, doing things a little differently than everyone else," Walton said.
"When I look at Wal-Mart today I see the same company my dad saw 16 years ago, a company with its best days ahead," Walton said, referring to the day in 1992 when Sam Walton was awarded the Presidential Medal of Freedom and addressed Wal-Mart employees publicly for one of the last times.
REJUVENATING SALES
Wal-Mart's annual meeting took place this year as the retailer's back-to-basics strategy is helping it post sales gains despite the weak U.S. economy and its share price has risen in tandem with its improving results.
It is emphasizing its low prices at the same time U.S. shoppers are being squeezed by rising food and fuel prices, a deteriorating housing market and tighter access to credit.
Wal-Mart's shares are up 26 percent this year through Thursday.
On Thursday it said its May sales at U.S. stores open at least a year rose 3.9 percent, beating the analysts' average estimate of a rise of 1.6 percent, according to Thomson Reuters data. The sales advance also surpassed Wal-Mart's own forecast for sales to be flat to up 2 percent.
Wal-Mart "handsomely" beat all sales estimates in May, Eduardo Castro-Wright, head of Wal-Mart's U.S. business, told the crowd.
"We're winning in the marketplace," he said, telling Wal-Mart employees in the audience that they should be proud of their achievements.
NEVER PLAY CATCH-UP
Scott said it is critical that the retailer never count on finding success by simply replicating its old strategy, as it had in previous years.
"The world changed. People's expectations of us -- and of corporations in general -- changed. And we found ourselves playing catch up. We can never let that happen again," Scott said.
"Not only must we never fall behind, we must always push ourselves to stay ahead. We must continue to ask fundamental questions that alter perspectives and ultimately behavior."
Scott said the retailer's stores now look better and are "friendlier" places to shop.
During a tour of a supercenter location on Thursday, executives touted the wider aisles and efforts to weed out poor-selling merchandise and reduce clutter.
Scott said he is meeting with government leaders worldwide, talking about ways to solve issues confronting consumers today.
"There are very clear trends that the retail industry and the world will have to confront -- the aging of the global population, the multipolar balance of power, income inequity, the disruptive power of technology, and the increased demand for energy, to name a few," he said.
He said the retailer stands "ready to work with the new president and the next Congress. We believe we can be an effective partner, and leaders who want to get things done will seek Wal-Mart as a partner."