HOW BUT FIRST, THESE MESSAGES. > STRUGGLING U.S. ECONOMY AND
THOSE STAGGERING NEW JOBLESS
NUMBERS JUST OUT.
10% OF THE AMERICAN WORKFORCE
NOW, NEARLY 17 MILLION PEOPLE
OUT OF WORK AND THAT IS, OF
COURSE, FUELING THE DEBATE OVER
WHEN THE ECONOMY SHOULD REOPEN.
WALMART IS THE WORLD’S LARGEST
PRIVATE SECTOR EMPLOYER IT’S
BEEN ONE OF THE COMPANY’S
WORKING WITH THE PRESIDENT’S
CORONAVIRUS TASK FORCE.
DOUG McMILLON IS WALMART’S
PRESIDENT AND CEO, CHAIRMAN OF
THE BOARD OF DIRECTORS FOR THE
BUSINESS ROUNDTABLE, AN
ASSOCIATION OF AMERICA’S LEADING
CEOs.
CEOs. MR. McMILLON, GOOD MORNING TO
YOU.
YOU. >> GOOD MORNING, SAVANNAH.
>> I KNOW YOU KNOW THOSE
UNEMPLOYMENT NUMBERS WELL.
I ALSO KNOW THAT WALMART IS
HIRING RIGHT NOW, BUT WE WERE SO
STRUCK BY THIS IMAGE OF CARS
LINING UP AT A FOOD BANK IN
TEXAS.
TEXAS. SOME PEOPLE ARE EXPECTING THAT
THE UNEMPLOYMENT FIGURE
ULTIMATELY COULD BE HIGHER THAN
THAT OF THE GREAT DEPRESSION.
ARE YOU CONCERNED THAT WE MAY
ACTUALLY SEE NOT JUST A
RECESSION BUT A DEPRESSION IN
THIS COUNTRY?
THIS COUNTRY? >> WELL, I THINK IT’S REAL
IMPORTANT THAT WE PRIORITIZE THE
HEALTH AND SAFETY OF THE
AMERICAN PUBLIC RIGHT NOW, AND
IT IS ALSO IMPORTANT THAT WE GET
BACK TO WORK AS WE CAN.
I THINK THAT’S GOING TO TAKE A
LOT OF COLLABORATION BETWEEN
PRIVATE ENTERPRISE, SMALL
BUSINESS, LARGE BUSINESS AS WELL
AS STATE AND LOCAL AND OBVIOUSLY
THE NATIONAL GOVERNMENT.
THAT WILL NEED TO HAPPEN A
REGION AT A TIME.
A COUNTY AT A TIME.
THERE ARE A NUMBER OF US
THINKING ABOUT NOW WHAT NEEDS TO
BE IN PLACE SO OTHER TYPES OF
BUSINESSES BEYOND OURS CAN START
BACK TO WORK.
AT WALMART WE NEVER REALLY SHUT
DOWN.
DOWN. KEEPING THE GROCERY SUPPLY CHAIN
FLOWING HAS BEEN OUR PURPOSE
THESE LAST FEW WEEKS AND MONTHS.
IN THIS COUNTRY AND AROUND THE
WORLD.
WORLD. SO WE HAVE LEARNED A BIT HOW TO
OPERATE AND ADJUST TO TRY AND
SERVE CUSTOMERS IN THIS
ENVIRONMENT AND WE’LL CONTRIBUTE
THOSE IDEAS BEST WE CAN.
>> IT’S INTERESTING WHAT YOU
JUST SAID.
JUST SAID. THE PRESIDENT THIS WEEK SAID HE
REALLY WOULD LIKE TO SEE THE
ECONOMY OPEN BACK UP WITH A BIG
BANG, AND WHO WOULDN’T?
BUT YOU WERE JUST TALKING ABOUT
HOW THE ECONOMY MIGHT REOPEN,
AND WHAT MIGHT BE NECESSARY FOR
COMPANIES OTHER THAN YOURS TO
REOPEN.
REOPEN. ARE YOU IMAGINING MASS TESTING?
THAT KIND OF THING?
>> I THINK THERE ARE A NUMBER OF
INGREDIENTS THAT GOT TO BE IN
PLACE.
PLACE. WE NEED GOOD DATA, IMPROVED
TESTING.
TESTING. LOTS OF FOLKS ARE WORKING ON
THAT NOW.
THAT NOW. IMPORTANT ROLE OF PPE COMES INTO
PLAY HERE.
PLAY HERE. AT WALMART MADE A NUMBER OF
ADJUSTMENTS, REDUCED HOURS,
CLEANING THE STORES OVERNIGHT.
WE’VE GOT MASKS AND GLOVES FOR
OUR ASSOCIATES SO THEY CAN USE
THOSE.
THOSE. PUT UP PLEXIGLAS AT OUR CASHIER
STANDS AND IN PHARMACY.
WE’RE TAKING THE TEMPERATURE OF
OUR ASSOCIATES STARTING TODAY
BEFORE THEY START IN OUR STORES,
CLUBS AND DISTRIBUTION CENTERS.
I THINK INGREDIENTS LIKE THAT
NEED TO COME INTO PLAY AS
CUSTOMERS THINK ABOUT SOCIAL
DISTANCING AND ASSOCIATES
RESPOND TO THAT SAME ISSUE,
WE’VE STARTED TO METER THE
NUMBER OF CUSTOMERS THAT CAN
COME INTO A STORE AT ANY POINT
IN TIME TO HELP CREATE MORE
SOCIAL DISTANCE.
SOCIAL DISTANCE. THOSE ARE EXAMPLES HOW EACH
BUSINESS WILL NEED TO PREPARE
AND RESPOND.
AND RESPOND. >> YOU’VE TALKED ABOUT THE
WALMART WORKER AS BEING HEROIC
AND THEY ARE ON THE FRONT LINES,
AT GREAT RISK TO THEMSELVES, I
MIGHT ADD.
MIGHT ADD. TWO WORKERS FROM WALMART IN THE
CHICAGO AREA PASSED AWAY FROM
THE VIRUS.
THE VIRUS. ONE OF THE FAMILY’S FILED A
WRONGFUL DEATH LAWSUIT AGAINST
THE COMPANY, AND THE QUESTION IS
WHETHER SOME OF THESE POLICIES
YOU JUST OUTLINED CAME A LITTLE
TOO LATE?
TOO LATE? FOR EXAMPLE, TAKING TEMPERATURES
ARE EMPLOYEES IN THE STORES’S
THAT HAPPENED SIX DAYS AFTER ONE
OF THE CHICAGO EMPLOYEES PASSED
AWAY.
AWAY. >> YEAH.
>> YEAH. OUR HEART GOES OUT TO THOSE
FAMILIES, AND THE ASSOCIATES IN
THOSE STORES.
THOSE STORES. WE THINK THAT EVERYTHING WE’RE
DOING, TAKE OUR LEAD POLICY, FOR
EXAMPLE, GIVES PEOPLE FREEDOM
NOT TO COME TO WORK.
WE DON’T WANT ASSOCIATES COMING
TO WORK IF NOT FEELING WELL HAVE
A TEMPERATURE.
A TEMPERATURE. THE THINGS WE’VE DONE WITH OUR
CASH BONUS, PULLING FORWARD
QUARTERLY BONUSES GIVE FREEDOM
FROM A FINANCIAL POINT OF VIEW
TO MAKE THAT CHOICE.
WHEN THEY GET TO THE STORES THE
STEPS I DESCRIBED A MINUTE AGO
INTENDED TO KEEP PEOPLE AS SAFE
AS POSSIBLE AS WE WORK THROUGH
THIS.
THIS. I AGREE WITH YOU.
ASSOCIATES GETTING UP EVERY DAY,
CHOOSING TO COME TO WORK, SERVE
CUSTOMERS ARE HEROIC.
I TRAVELED AROUND THE COUNTRY.
I WAS IN NORTH CAROLINA THIS
WEEK.
WEEK. I’VE BEEN IN OHIO, NEBRASKA,
OTHER PLACES RECENTLY.
OUR ASSOCIATES HAVE AN
INCREDIBLE ATTITUDE AND
COMMITMENT TO SERVING OTHERS.
IT’S ONE OF THE REASONS WHY I
WANTED TO COME ON TODAY.
JUST TO THANK THEM, APPRECIATE
EVERYBODY THAT’S WORKING IN
RETAIL, AND IN MANUFACTURING, BY
THE WAY.
THE WAY. THOSE KEEPING THE SUPPLY CHAIN
GOING, CHOOSING TO GET UP EVERY
DAY AND GO TO WORK AND
CONTRIBUTE IS REALLY TRULY
HEROIC DURING THIS PERIOD OF
TIME AND WE’RE GRATEFUL TO THEM.
>> I THINK ALL AMERICANS HAVE A
NEW APPRECIATION FOR THE HARD
WORK THAT IS BEING DONE AND HOW
NECESSARY IT IS AND HOW MUCH WE
ALL RELY ON IT.
WALMART IS ONE OF THOSE
BUSINESSES THAT’S ACTUALLY DOING
WELL IN THIS TERRIBLE ECONOMY,
WHERE THE DOW IS DOWN, WALMART
STOCK IS UP.
AND THE EXECUTIVES WILL SEE A
BENEFIT FROM THAT, FRANKLY.
THEY’LL REAP THE REWARDS OF
THAT.
THAT. IS IT TIME BEYOND JUST TEMPORARY
BONUS OR TEMPORARY PAID LEAVE,
EXTENSIONS THAT KIND OF THING,
IS IT TIME TO DO MORE FOR THE
WALMART EMPLOYEE TO HAVE A PIECE
OF THAT FINANCIAL SUCCESS?
>> YEAH.
>> YEAH. WE’VE BEEN TAKING A NUMBER OF
STEPS, AS YOU MAY REMEMBER, WE
DID A SPECIAL CASH BONUS AT THE
BEGINNING OF THIS PROCESS TO PUT
MONEY IN THEIR POCKETS AND
PULLED QUARTERLY BONUS.
MAKING ADJUSTMENTS TO PAID TIME
OFF PLAN.
OFF PLAN. GOT A THREE TIER PROCESS THERE
WHERE ASSOCIATES CAN CHOOSE TO
NOT COME TO WORK AND A NUMBER OF
THEM HAVE.
THEM HAVE. ONE OF THE REASONS WE’VE BEEN
HIRING SO MANY PEOPLE DURING
THIS PERIOD OF TIME.
SINCE MARCH 19th, IN THE UNITED
STATES WE’VE HIRED OVER 100,000
PEOPLE TO JOIN WALMART AND HELP
OUT.
OUT. THAT’S REAL IMPORTANT.
A LOT OF OUR ASSOCIATES ARE
FEELING FATIGUED FROM WORKING SO
HARD FOR SO MANY DAYS AND WEEKS.
AS WE GO FORWARD WE’LL KEEP
LOOKING FOR OPPORTUNITIES TO
SUPPORT THEM MORE, BECAUSE AS I
MENTIONED EARLIER THEY REALLY
ARE STEPPING UP.
>> LET’S TALK ABOUT WHAT PEOPLE
ARE BUYING.
ARE BUYING. OBVIOUSLY, THEY’VE BEEN
STOCKPILING SUPPLIES LIKE TOILET
PAPER, PAPER TOWEL, HAND
SANITIZER.
SANITIZER. A LOT OF TIMES YOU GO TO THE
STORES IT’S NOT ON THE SHELVES.
WHEN DO YOU FEEL YOU’LL BE ABLE
TO MEET THE DEMAND THAT’S OUT
THERE CONSISTENTLY?
THERE CONSISTENTLY? >> I THINK IT’S IMPORTANT THAT
EVERYONE KNOW THAT OUR
MERCHANDISE CONTINUES TO FLOW.
OUR REPLENISHMENT TEAM,
SUPPLIERS, ARE WORKING HARD TO
MAKE THAT HAPPEN.
FOOD IS RECOVERING AND IN GOOD
SHAPE.
SHAPE. HAND SANITIZER HAS BEEN HARDER
TO COME BY.
OUR ASSOCIATES HAVE IT AND WE’RE
WORKING TO PUT IT ON THE SHELF.
SOON AS WE DO, IT’S GONE.
PAPER GOODS CONTINUING TO SELL
OUT QUICKLY.
OUT QUICKLY. SOLD ENOUGH TOILET PAPER FOR
EVERY AMERICAN TO HAVE THEIR OWN
ROLL JUST IN FIVE DAYS.
SO THERE’S PLENTY OF FLOW
COMING, BUT IF EVERYONE COULD
MANAGE AND BUY WEEK TO WEEK
RATHER THAN STOCKING UP AT THIS
POINT IT WOULD BE HELPFUL FOR
EVERYBODY.
EVERYBODY. >> IN WAS AN ANNOUNCEMENT A FEW
WEEKS AGO AT THE WHITE HOUSE, AS
YOU, WALMART AND OTHER BIG BOX
RETAILERS WOULD PARTICIPATE IN
HOUSING MOBILE TESTING SITES FOR
THE VIRUS IN YOUR PARKING LOTS.
AS I UNDERSTAND IT, THERE HAVE
BEEN A FEW SET UP, BUT NOT FOR
EVERYBODY.
EVERYBODY. THEY’RE FOR FRONT-LINE WORKERS.
IT HASN’T REALLY GONE, OR CAUGHT
ON NATIONWIDE YET.
WHAT’S THE STATUS OF THAT AND
WHAT TO EXPECT?
>> YEAH.
>> YEAH. WE’RE MAKING PROGRESS.
WALMART ALONG WITH OTHER
RETAILERS HAVE BEEN WORKING WITH
THE TESTING LAB, STATE
GOVERNMENTS AND THE FEDERAL
GOVERNMENT TO TRY AND STAND
THESE US.
THESE US. WE’VE PUT UP A FEW AND THINK
ABOUT 20 SITES WILL BE OPEN OVER
10 STATES IN THE NEXT COUPLE OF
WEEKS.
WEEKS. PPE THE ORIGINAL LIMITATION.
THAT’S STARTING TO IMPROVE.
WE’RE HOPING TO GET THOSE OPEN
AND OPERATING QUICKLY IN THE
PLACES WHERE NEEDED MOST.
THE GOVERNMENT ALSO ASKED FOR
MORE ASSISTANCE FROM US AND FROM
OTHERS FOR DISPOSABLE SURGICAL
GOWNS.
GOWNS. WE’VE WORKED TO SOURCE THAT AND
PROVIDE IT THROUGH OUR SUPPLY
CHAIN AND PARTNERSHIP WITH
McKESSON AND THROUGH APRIL WE
THINK WE FOUND AN ADDITIONAL
MILLION GOWNS WE WILL BE ABLE TO
GET TO HOSPITALS AND THROUGH THE
MONTH OF MAY, MILLIONS MORE TO
HELP OT ON THEUT ON THE FRONT LI
>> GREAT NEWS TO HEAR.
BEFORE I LET YOU GO, AS CEO OF
WALMART YOU HAVE A UNIQUE VIEW
ON THE PULSE OF AMERICA.
IS THERE ANYTHING THAT PEOPLE
ARE BUYING A LOT OF RIGHT NOW
THAT KIND OF SURPRISED YOU?
>> YOU CAN DEFINITELY SEE THAT
AS PEOPLE HAVE STAYED HOME,
THEIR FOCUS SHIFTED.
STARTED OUT WITH FOOD AND
CONSUMABLES THEN MOVED TO THINGS
LIKE PUZZLES AND GAMES.
THINGS TO ENTERTAIN KIDS AND
EDUCATE CHILDREN AS YOU WOULD
GUESS.
GUESS. LATELY MORE GROOMING PRODUCTS.
PEOPLE STARTING TO NEED A
HAIRCUT.
HAIRCUT. YOU SEE MORE BEARD TRIMMERS AND
HAIR COLOR AND THINGS LIKE THAT.
IT’S INTERESTING TO WATCH THE
DYNAMIC PLAY OUT.
>> HMM.
>> HMM. WELL, HAIR COLOR, RIGHT HERE.
WALMART CEO DOUG McMILLON, THANK
YOU FOR BEING WITH US THIS
MORNING.