Wal-Mart Stores Inc chief executive officer Doug McMillon touted the company’s investments in people and technology, but also said it might have reached an employment peak and urged employees not to be afraid of automation.
Speaking on Friday at the annual shareholders’ meeting, McMillon highlighted ideas Walmart has introduced or tested in the past year, like grocery pickup and technology that tracks food through the global supply chain.
The company has also put money into its online operations, buying several smaller retail sites as it seeks to compete better with Amazon.com Inc.
Photo: The Northwest Arkansas Democrat-Gazette via AP
McMillon and other executives also noted the company’s investments in higher wages and training for its employees.
“We will compete with technology, but win with people,” McMillon told a cheering audience.
He added that workers should not fear increasing automation in the industry.
“No doubt our work will be different in the future — robots, drones and algorithms will do some work that we used to have to do,” he said. “Some people are afraid of what these changes will bring. I don’t think we should be. Instead, I think we should recognize that we’ll be able to learn, grow and change together.”
A report conducted by the Cornerstone Capital Group and commissioned by the Investor Responsibility Research Center Institute said that between 6 million and 7.5 million US retail jobs could be wiped out in the coming years because of technology.
In a briefing with reporters, McMillon suggested that the company might have reached an employment peak at 1.6 million workers.
“We may end up over time with fewer people, paying them more and have them use more technology,” he said.
Walmart’s online sales surged as it tinkered with its shipping offers and other services and drew more shoppers to its stores in its fiscal first quarter.
The world’s largest retailer has posted sales gains at established stores for the 11th straight quarter, and customer traffic has risen for the 10th quarter in a row.
McMillon cited the company’s efforts to offer more shopping options, including automated pickup stations in some store parking lots, in-store pickup for online orders and “Jet Fresh” delivery, which provides grocery delivery in one to two days and is available to about half of US households.
With faster shipping a key area of competition, Walmart had on Thursday announced a delivery service using its own store employees, who are to deliver packages while driving home from their work shifts.
Walmart has invested US$2.7 billion in higher wages and training for workers to lower turnover and make the shopping experience more appealing.
The company has opened 155 training academies and plans to have 200 by the end of this year.
About 100,000 associates have been trained.
Walmart’s financial performance has stood out amid a largely gloomy environment for retailers. Its shares have risen 13 percent over the past year and are hovering at about US$80.
Still, amid the company chants and upbeat presentations, there were some signs of dissatisfaction.
Two employees, speaking on shareholder proposals, called for more hours for part-time workers and more parental leave.
The comments, both from members of the OUR Walmart worker group, prompted loud cheers from the employees.
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