Our Prime Objective for 1973
In thinking about our year end and the fact that we’re about to wrap up old 1972 for Wal-Mart and put it away forever, I couldn’t help but focus on what should be our one greatest aim and objective for 1973. Above all, our company-wide number one goal must be to increase ”turnover” on our merchandise for next year. Frankly, if I remember correctly, this was also one of our prime objectives for 1972, but somewhere along the way we really got off track. I think without question when the figures are complete, we will have achieved fewer turns on a store for store basis than in previous year 1971, and this is not good. In every other respect – sales goals, number of new stores and net profit control of expenses, I’m sure we will have had a record breaking – really a fantastic year. In this one most important area – more sales on less dollar investment – we have fallen short, and we must get ourselves together – all of us working at all levels to somehow increase the number of times each store turns its inventory in relation to sales.
I’m sure you all understand that we have added many merchandise categories and items last year and insisted that a higher in-stock condition be maintained in 1972 than ever before. This did result in additional sales and customer satisfaction, but it also meant much heavier inventories than ever before. Somehow we’ve got to find a middle road that will work for us.
I’d greatly appreciate each of you department heads, cashiers, cash register operators, stock men, assistant manager and managers getting together as store groups in January to discuss what each of us can do to achieve the 5.2 turn that was our goal for 1972. We’d like your ideas on what you can do at store level and what we can do here at the General Office and in the Merchandise Department to help your store increase its turns for next year. I know all of you realize that turnover directly affects our profits and in turn our profit sharing program in which we’re all most interested.
We’ll work on the problem at this level – and with all of us working together on this goal for 1973, I’m confident we can be No. 1 in merchandise turnover for discount chains. We are No. 1 now in most other operating categories for general merchandise discount chains in the U.S. according to last year’s Cornell Study Report.
I would appreciate each of our operating units meeting and discussing this matter of turnover and your letting us know what can be done at your level, as well as your ideas for us at management level. (That is merchandise and control departments). Your suggestions and efforts will be considered an appreciated. Send your comments to Mr. Jim Elliott, Merchandise Controller, or send your suggestions to us through your Supervisor.
Thanks again for your helping make 1972 such a good year. Good luck, and the best of everything to you and your families for 1973!