Message to Associates

Pleasing Our Customer Will Keep Profits High

Dear Partners:

Over the last 12 months, we’ve had more expansion into new states than ever before. Most important is that our new Wal-Marts, on the whole, are some of the best we’ve ever opened. We want to salute all our new associate-partners who have done such a great job of pioneering for Wal-Mart these new units in states that include Michigan, Wisconsin, Indiana, Ohio, North Dakota, South Dakota, New Mexico, Arizona, West Virginia, Pennsylvania, Nevada, Wyoming, Utah and California. Of course, we continue to open a large number of stores in North Carolina and Florida which are also in this select group. Already, these stores have produced over and above the previous all-time best net profit percentages for new stores – unbelievable but true. So, to our newest Wal-Mart partners, we thank you and appreciate your tremendous accomplishments. Your very successful start in these new states bide well for all of us in our Wal-Mart Company and qualifies you for our great Profit Sharing program.

Of all we’ve achieved together, I suppose I’m most proud of the Profit Sharing Trust for our associates and what it has meant to them over time. Our total accumulated profit sharing must be close to a billion dollars by now and that doesn’t include amounts paid out to retirees. We have over 165,000 active associate-partners in profit sharing. Many of our stores have accumulated over two million dollars in profit sharing for their associates in 17 years or less – all being contributed by our Company.

To you, our new partners: Keep doing the right and good things for each other and our customers and you, too, will soon see your Profit Sharing Trust grow at an incredible rate. We’ve done it during these past 20 years and we can and will do it during the next 20.

Over 90 stores in Missouri alone have accumulated about $85 million for their partners, averaging almost a million dollars per store! It’s something all of us can be proud of. Arkansas, where our first stores came on stream, now with 90 Wal-Marts, five Sam’s Clubs and three distribution centers, will have accumulated over $175 million for our associate-partners.

What’s our secret? You and I both know it has to do with the way we treat our customers. It has to do with attitudes and an objective for all our great associates throughout Wal-Mart and Sam’s to exceed our customers’ expectations every hour of every day in all of our stores. It’s that simple. In order for that to happen, in order for us to do the right things, we must:

• Apply our “10-foot” rule.
• Thank our customers by name.
• Run clean, neat stores with promotionals displayed properly throughout.
• Have consistent in-stock on basics and seasonal merchandise.
• Save our customers time and money.
• Be good citizens and help our communities in every possible way.

In order for these and other good things to happen, we must have that enthusiastic, “go for it” Wal-Mart team spirit throughout our Company. Our customers are truly our real boss. Our managers and assistants throughout our Company must first be servants and respected leaders. Their number one priority must be: Building enthusiasm and commitment in our associate-partners, listening to them, accepting and trying as many of their suggestions as possible, encouraging them along the way and fully demonstrating and living by example the fundamentals of our Company. Our total thrust must be: Putting forth the best effort we possibly can for our associate-partners throughout our Wal-Mart Company.

I can’t emphasize enough that we must treat each other as we would like to be treated. That basic ingredient of honesty and integrity is essential. Morality and a solid determination of placing the utmost importance on our families and keeping them together should be our individual goals.

We all have so much to be thankful for. We truly can be whatever we choose to be. I especially like the Sam’s Club slogan for the 1990s: “WE CAN DO ANYTHING!” Working together, caring for one another, helping one another, building morale through teamwork – nothing can stop us in the years ahead.

Good luck and God bless you all. Thanks my wonderful partners.

Sam Walton