1. W A L-M A R T ANNUAL REPORT 2001
Food
Food Innovations
Innovations
Store of the Community
Store of the Community page 14
page 14 page 11
page 11
page 4
page 4
Culture
page 5
Retailtainment
page 7
tomers.
d Our Cus
un
volves Aro
We Do Re
g
Ever ythin
International
International
page 8
page 8
Good Works
Good Works SAM’S Jewelry
page 12
page 12 page 15

2. Table Of Contents:
Table Of Contents:
2. Lee Looks at 2001 – Lee Scott takes
a glance back at fiscal 2001 and to the year ahead.
4. This Store is Your Store
Tailoring merchandise to individual communities hits
the mark with Customers.
5. The Wal-Mart Way… – For almost
40 years, the Wal-Mart culture of respect for
individuals has endured.
6. Every Store Counts – Year end
count of Wal-Mart’s operations by state and country.
7. That’s Retailtainment! – From
merchandising opportunities with hit movies and DVDs
to exclusive concerts by the hottest stars, Wal-Mart
“Retailtainment” continues to grow.
8. Wal-Mart Around the World
International operations continually adapt to the needs
and cultures of Customers around the globe.
11. A Brief History of Innovation
Wal-Mart has always been an innovator, and is
dedicated to uncovering more and better innovations
for our Customers.
12. Low Prices and High Priorities
Being of real benefit to our communities is at the heart
of every Wal-Mart Associate.
14. Fresh,Fresh,Fresh
Fresh food in Supercenters, SAM’S CLUBS and
Neighborhood Markets is just the beginning.
15.SAM’S Sparkles – SAM’S CLUB
changes the setting for quality jewelry.
16. Financial$
$ 11-Year Summary
$ Management’s Discussion & Analysis
$ Financial Statements
$ Corporate Information
About The Cover: In every store, in every country, in every
way, our focus is as it has always been – on our Customers.

3. ANNUAL REPORT 2001
DIRECTORS:
FINANCIAL HIGHLIGHTS
John T. Chambers
Stephen Friedman
Stanley C. Gault
David D. Glass
Net Sales Earnings Per Share
Roland Hernandez
Dr. Frederick S. Humphries 1997 $.67
1997 $104.9
E. Stanley Kroenke 1998 $.78
1998 $118.0
Elizabeth A. Sanders 1999 $.99
1999 $137.6
H. Lee Scott 2000 $1.21
2000 $165.0
Jack C. Shewmaker 2001 $1.41
2001 $191.3
Donald G. Soderquist
Dr. Paula Stern
Jose Villarreal
John T. Walton
S. Robson Walton
OFFICERS:
S. Robson Walton
Chairman of the Board
H. Lee Scott
President & CEO
David D. Glass
Chairman, Executive Committee
of the Board
Paul R. Carter
Executive Vice President &
President, Wal-Mart Realty
Return on Assets Return on Shareholder’s Equity
Bob Connolly
Executive Vice President, Merchandise
1997 19.2 %
1997 7.9%
Thomas M. Coughlin
1998 19.8%
1998 8.5%
Executive Vice President &
President & CEO, Wal-Mart Stores Division 1999 22.4%
1999 9.6%
David Dible 2000 22.9%
2000 9.5%*
Executive Vice President, Specialty Division
2001 22.0%
2001 8.7%
Michael Duke
Executive Vice President, Administration
Thomas Grimm
Executive Vice President &
President & CEO, SAM’S CLUB
Don Harris
Executive Vice President, Operations
John B. Menzer
Executive Vice President &
President & CEO, International Division
Coleman Peterson
Executive Vice President, People Division
Thomas M. Schoewe
Executive Vice President & Chief Financial Officer
Robert K. Rhoads
Senior Vice President, General Counsel & Secretary
J. J. Fitzsimmons *Calculated giving effect to the amount by which a lawsuit settlement
exceeded established reserves. If this settlement was not considered,
Senior Vice President, Finance & Treasurer
the return was 9.8%.
1

4. A LOOK AT 2001
AND BEYOND
Dear Fellow Shareholder: facilities and adding
services, including
It is truly an honor to serve pharmacy, optical, 1-Hour
as President and CEO of Photo and fuel, to offer the
Wal-Mart Stores, Inc., and highest quality shopping
I appreciate the opportunity experience to our Members.
to share with you some In short, our Members
thoughts from fiscal 2001 and continue to respond
our outlook for the future. favorably to SAM’S
What a year of milestones it unique, high-quality
was! But before we get into merchandise at
the details, I’d like to touch exceptional values.
on a few highlights from
the year. The International Division
had an excellent year,
Net sales in fiscal 2001 growing sales by 41 percent
increased almost 16 percent and achieving more than
to more than $191 billion, $32 billion in revenues. As
representing a growth in we travel internationally, it’s
revenue of more than exciting not only to see our
$26 billion. In addition, net stores and clubs operating
income reached $2 billion at such high standards, but
clubs and distribution centers, or
for the fourth quarter and almost also to see the Wal-Mart culture
those in the home office, our people
$6.3 billion for the year, making it our being embraced throughout the
truly deserve the credit for all these
first “two-billion-dollar-income world. This just shows that treating
accomplishments. Let’s look a little
quarter” and our first people with respect and raising their
closer at what our Associates were
“six-billion-dollar-income year.” standard of living through Every Day
able to achieve this year. Low Prices knows no boundaries.
FORTUNE magazine named
Fiscal 2001 was clearly one of the
Wal-Mart the third “most admired” I’ll highlight the exceptional
strongest years in recent memory
company in America and one of the performances by our three largest
for the SAM’S CLUB division. We
100 best companies to work for in international operations: Canada,
saw growth in both sales and
America. Our Company also ranked Mexico and the United Kingdom.
earnings. Moreover, earnings growth
fifth on FORTUNE’s Global Most
outpaced sales growth for the year.
Admired Companies list based on Fiscal 2001 was a great year for our
Membership renewals reached
characteristics such as leadership, Canadian business. Sales and
record levels, demonstrating strong
teamwork and the way we treat our operating profit increased for the
loyalty and Member acceptance, and
people. In addition, Americans year by more than 14 percent,
illustrating that a SAM’S membership
named Wal-Mart the company they continuing the customer-focused
is the best value in the warehouse
think of first in supporting local retailing traditions established in the
club business. In fact, one in three
causes and issues, according to U.S. almost 40 years ago.
households in America now has a
Cone, Inc., a national research firm.
SAM’S CLUB membership. SAM’S Mexico also had an outstanding
has made great progress over the
Whether it’s our domestic or year, exceeding both its sales and
past two years in upgrading our
international Associates in the stores, profit goals. Our Customers there
2

5. have responded exceptionally well Finally, it is a personal priority of
“Sam Walton set
to the high level of customer mine to identify and develop the next
the standard for our
service our Associates provide, and generation of Wal-Mart leaders. For
vision of leadership,
to the introduction of Every Day years, it was enough to just develop
Low Prices in all our retail formats managers. But as the business
and we are carrying
in Mexico. environment becomes more
it forward.” challenging, it takes true leadership
In particular, I’d like to thank our to guide a successful business. Sam
as we moved through the second half
ASDA Colleagues (Associates) in Walton set the standard for our vision
of fiscal 2001, it became evident that
the United Kingdom for their of leadership, and we are carrying it
consumer spending was slowing and
exceptional performance over the forward. We are committed to
would not recover in time for the
last year. For the fourth straight growing the leaders today who will
crucial holiday shopping season. Our
year, ASDA was voted “Supermarket propel this Company into tomorrow.
Associates reacted appropriately,
of the Year” by Checkout magazine. It’s the right thing to do for our
however, by continuing our focus
The division exceeded the Customers, our Associates and
on customer satisfaction.
objectives set at the time we our Shareholders.
acquired ASDA, and our Colleagues
Although we did not end the year the
accomplished our ultimate goal – On a more personal note, I would
way we would have liked, the keys to
taking care of our Customers and like, on behalf of all Wal-Mart
our ability to manage a slowdown in
providing them with an exceptional Associates, to thank David Glass for
the economy remain simple and
value in the marketplace. his leadership over the past 25 years.
effective. They are what we have built David served as Chief Executive
our business on since the beginning.
The Wal-Mart Stores Division, Officer for 12 years and presided
by far our largest, features our over more revenue and earnings
First, we must maintain an in-stock
Discount Store, Supercenter and growth than any other CEO in the
level unequaled in the retail world.
Neighborhood Market formats. The history of retailing. We are fortunate
Our commitment is unchanged:
year brought some truly bright spots that David has agreed to stay on in
provide the products our Customers
for this division as well. his present role, providing advice
want at the moment they want to and counsel to me and the entire
make the purchase.
We’ve made exceptional strides in Wal-Mart team.
our food offerings through the
Second, we must provide the level of
Supercenters and Neighborhood At Wal-Mart, we’re passionate about
service our Customers expect and
Markets. This year, Wal-Mart delivering value to our Customers
deserve. It’s not enough to provide
became the largest retailer in the and Shareholders. As Shareholders,
merchandise and a safe, comfortable
U.S. grocery industry, according to you play a vital role in our success as
environment in which to shop. We
Supermarket News. That is truly a you invest in Wal-Mart stock and
must generate the excitement and
remarkable achievement, and I think shop at our Wal-Mart stores and
enthusiasm necessary to build a
Sam Walton would be proud. As SAM’S CLUBS. While our history is
relationship with the Customer and
always, we will continue to ensure rich with success, there’s no question
make each shopping experience
that we are the best food retailer, not that our best years are yet to come,
better than the one before. This
just the largest. and this time next year I expect to
includes simple things like saying report another record year for
thank you and greeting our
In July, we challenged our Associates Wal-Mart. Thank you, and I look
Customers warmly as they enter the
to react to the slowing economy by forward to visiting with you again
store. Sam Walton called it
reducing inventories by more than next year.
“aggressive hospitality,” and it still
$1 billion, the majority of which
works today.
would come from the Wal-Mart Lee Scott
Division. Despite disappointing
Third, we must provide our
holiday sales, our Associates not only
Customers with top-quality
met this goal – they exceeded it.
merchandise and services at Every
Day Low Prices. After all, that’s what
The division had a strong first half of
the sign says, and that’s our
the year as our Associates built on
commitment to our Customers.
last year’s phenomenal growth. But
3

6. THIS STORE IS
YOUR STORE
“Our store Associates live and work
in each store’s community and
interact with over 100 million
Customers each week. If we utilize
information from all available
resources including Customers,
Wal-Mart has Associates and suppliers, our store
All store managers, including
taken individualized assortment will reflect the interests of its
general managers and department
to a new level with its Store of the community. We will sell merchandise
managers, submit yearly surveys,
Community initiative. The Store the Customers want to buy, not
which include information such
of the Community is not a new line merchandise we want to sell. By
as when little league baseball or
of stores, but rather an exciting accomplishing this goal, we create
a hunting season begins in their
model for existing Wal-Mart discount happy, satisfied
community. This specific data is
stores and Supercenters to meet the Customers because
invaluable for developing a Store
shopping needs of local store they can
of the Community. For example,
Customers. Introduced in fiscal 2001, now
a Wal-Mart store located near
these stores are specifically tailored complete
a hospital may need a larger
to mirror the demographic makeup all of their
pharmacy area. Stores close to
of their respective communities. shopping
recreational bodies of water stock
in one
life vests and fishing equipment not
“The one-size-fits-all concept simply location,
carried in most land-locked stores.
doesn’t work anymore in the retail our store,”
Other stores offer regional sporting
industry. Customers tell us what they Coughlin
goods. Softball leagues in Louisiana
want and it is our responsibility to added.
would not know what to do with a
meet those needs,” Tom Coughlin,
softball that is four inches larger in
President & CEO of the Wal-Mart The detailed knowledge of a
diameter like those used in Chicago
Stores Division, said. community created by the
and other urban areas.
Customer/Associate partnership
The Store of the Community is allows each store to differentiate
In addition to obvious assortment
stocked based on a combination of department size, shelf-space
flexibility, the program also allows
consumer purchasing data, area allocation and departmental
seasonal start and end dates to be
demographics, customer preferences adjacencies. The result is a more
determined by the needs of the
and input from our store Associates. efficient distribution of inventory by
Customers and not by a store’s
Evaluating the buying patterns of stocking our stores based on
particular geographic zone. For
Customers enables Wal-Mart buyers customer preferences rather than
example, turkey-hunting season
to determine what is selling best at standardized assortments. It also
may extend longer in one state than
each store and purchase increases sales, reduces markdowns
in an adjacent state. The Store of
merchandise based on each and lowers inventory investment in
the Community concept allows us to
store’s data. the system. Most of all, it keeps
tailor the first store’s assortment so
Customers coming back into our
that it can display turkey
stores because we’re attentive to
hunting merchandise until
their needs.
the end of its season.

7. THE WAL-MART
WAY OF LIFE
Our Culture, Our Attitude, Our Commitment
The cornerstone of Wal-Mart’s Associates are encouraged to exceed Wal-Mart knows the best ideas
success has and will always be our Customers’ expectations, and the have come from our front line
culture. Customers shop at Wal-Mart results are outstanding customer Associates – greeters, checkers and
for the best values and the greatest trust and loyalty. Mr. Sam called it stockers. In fact, the idea to have a
selection of merchandise. We believe “aggressive hospitality.” He believed greeter at the door to welcome our
it is our culture that allows us to that by exceeding Customers’ Customers came from an Associate.
meet their expectations. The roots expectations, they will come back Every Associate is not only
of our culture are grounded in three again and again. Wal-Mart’s Ten-Foot empowered but is also driven to
fundamental principles: respect for Rule encourages Associates to speak make a difference and strive for
the individual (both our Associates to a Customer before that Customer excellence. Our Associates – their
and Customers), the highest can speak to them. Wal-Mart ideas and energy – are what will
standard of service to our Customers customer service is legendary, and determine our future success and
and a constant drive for excellence. the Ten-Foot Rule is one of the we encourage their input. Wal-Mart’s
reasons why. Open Door Policy allows Associates
Culture is the value system to share suggestions,
that directs people’s observations or concerns
thoughts, deeds and words. with any supervisor, from
Our founder, Sam Walton, a store manager to the
established the basic beliefs President and CEO
upon which our Company’s of Wal-Mart, with no
culture has evolved, but the fear of retaliation.
perpetuation of our culture
is the responsibility of all Our culture is what makes
Associates. Wal-Mart Wal-Mart unique and will
understands that a person continue to make us
cannot be forced to accept successful. Everyone in
our culture. Instead, every our Company is responsible
Associate must lead by for upholding the core
example and continue to beliefs that help keep our
develop the trust that culture alive and well. Our
makes our culture work. purpose as a Company is to
Managers are expected to provide our Customers and
be servant leaders who Members with the very
encourage their Associates best value and shopping
to take advantage of experience possible. It all
opportunities to express begins with our culture.
and share ideas with others. It is the cornerstone of
This environment of respect what our Company was
is one of the most important founded on and it is our
aspects of our culture. main focus. Always.
5

8. Fiscal 2001 End - of - Year Store Count
ts
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or
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UB
UB
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CL
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’S
’S
M
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isc
isc
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eig
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State State
SA
SA
Su
Su
D
D
N
N
Alabama 41 41 8 0 Montana 6 4 1 0
Alaska 5 0 3 0 Nebraska 12 8 3 0
Arizona 26 13 9 0 Nevada 12 4 4 0
Arkansas 41 36 4 5 New Hampshire18 4 4 0
California 117 0 26 0 New Jersey 23 0 6 0
Colorado 23 18 12 0 New Mexico 9 13 4 0
Connecticut 19 1 3 0 New York 52 13 18 0
Delaware 3 2 1 0 North Carolina 59 35 16 0
Florida 86 57 34 0 North Dakota 8 0 2 0
Georgia 51 45 16 0 Ohio 76 12 25 0
Hawaii 5 0 1 0 Oklahoma 48 32 6 8
Idaho 7 6 1 0 Oregon 25 0 0 0
Illinois 86 25 27 0 Pennsylvania 49 29 19 0
Indiana 50 33 14 0 Rhode Island 7 0 1 0
Iowa 33 18 7 0 South Carolina 27 32 9 0
Kansas 34 16 5 0 South Dakota 8 0 2 0
Kentucky 36 38 5 0 Tennessee 47 41 15 0
Louisiana 43 37 11 0 Texas 142 112 56 6
Maine 17 3 3 0 Utah 12 3 5 0
Maryland 27 3 11 0 Vermont 4 0 0 0
Massachusetts 36 1 3 0 Virginia 26 41 10 0
Michigan 55 2 21 0 Washington 26 0 2 0
Minnesota 37 2 9 0 West Virginia 8 20 3 0
Mississippi 30 31 4 0 Wisconsin 53 7 11 0
Missouri 66 46 13 0 Wyoming 5 4 2 0
U.S. Totals 1736 888 475 19
International/Worldwide
429*
Mexico 32 38 0
Argentina 0 11 0 0
Puerto Rico 9 0 6 0
Brazil 0 12 8 0
241**
United Kingdom 0 0 0
Canada 174 0 0 0
China 0 10 1 0 INT’l Total: 612 406 53 0
South Korea 0 6 0 0 World Wide
Grand Total: 2348 1294 528 19
Germany 0 94 0 0
* Includes: 37 Aurreras, 80 Bodegas, 54 Suburbias, 40 Superamas, and 218 Vips.
**Includes: 238 ASDA Stores and 3 ASDA/Wal-Mart Supercentres.
6

9. “That’s Retailtainment!”
Hit Movies, Hot Stars And Hip Merchandising Keep Customers Shopping
Wal-Mart understands that The Company, through its
today’s consumers have an Wal-Mart Live Concert
incredible array of shopping Series, broadcast an exclusive
choices from which to satellite concert performance
choose. Not only do they by international singing
want the best value for their superstar Ricky Martin in
hard-earned dollar, but the home entertainment
they also demand departments of stores
outstanding customer nationwide last year. This
service. We realized early televised event coincided
on that we must take care with the release of Martin’s
of Customers and that second English-language
part of doing so is album. Other concerts
creating a fun, dynamic presented last year included
shopping environment. Garth Brooks, Faith Hill and
Backstreet Boys.
At Wal-Mart, we call the
concept Retailtainment and “The concert series has
our goal is to add excitement been an extremely successful
to the shopping experience. Retailtainment event. It’s a
raised money for the Children’s
The result is a fun environment for perfect example of how we provide
Miracle Network.
the Customers and our Associates, our Customers with a fun,
but other benefits include increased entertaining shopping environment.
Wal-Mart also organizes system-wide
customer traffic and loyalty because Customers can view a free concert in
Retailtainment events. Last May,
that Customer looks forward to their a comfortable atmosphere and also
all Wal-Mart discount stores and
trip to Wal-Mart. benefit from coinciding promotions
Supercenters participated in an event
that are only available at our stores,”
to support the direct-to-video release
Every store is encouraged to Tom Coughlin, President & CEO of
of The Rugrats Discover America.
create its own “wild and crazy” Wal-Mart Stores Division, said.
Kids were invited to stores to watch
Retailtainment events specifically
the new Rugrats adventure while
designed for its individual Retailtainment is an area that truly
they ate snacks. Associates then
community. Local stores invite clubs sets our Company apart from
took the children on their own
and civic organizations to set up others, and it will continue to be an
“Discover America” adventure
exhibits, or ask police and fire important area of focus for Wal-Mart.
through the stores. To enhance the
departments to conduct safety Customers can expect to see more
educational value of this promotion, a
seminars and demonstrations. To events and promotions exclusive to
group of teachers developed a
raise money for local charities last Wal-Mart stores and their individual
complementary lesson plan, which
year, stores engaged in everything communities in the future. By
was distributed to select schools
from a ladder drive (in which creating a friendly, entertaining
across the United States.
Associates volunteered to sit on atmosphere for our Customers,
top of a ladder we provide a
until they solicited fun shopping
a certain amount in experience that
donations) to Bingo keeps them
for Seniors, which coming back.
7

10. Wal-Mart is truly a global company.
ARGENTINA PUER TO RICO
The Company has proven that
Wal-Mart expanded into Mendoza In fiscal 2001, Wal-Mart opened
its culture transcends borders
with the opening of a new its first distribution center in
and translates into many different
Supercenter, bringing the total Puerto Rico. Remodeling two of the
languages. “All Customers number of discount retail stores Company’s highest volume SAM’S
appreciate good service, low pricing in the country to 11. The Company CLUBS also highlighted the year.
has become an active corporate Of the six clubs on the island,
and great selection and that’s
citizen in Argentina and has the 106,000-square-foot SAM’S
the foundation upon which every
established programs to address CLUB at Bayamon has consistently
Wal-Mart store is built,” John B.
the needs of the communities in ranked as the top-producing club
Menzer, President & CEO of which it does business. Wal-Mart internationally since it opened in
Wal-Mart International, explained. donated more than $200,000 to 1993. Another club at Carolina,
communities in Argentina during Puerto Rico, is ranked second
In fiscal 2001, which ended the year and continues to give internationally in sales.
January 31, close to 17 percent of through merchandise donations,
Wal-Mart’s sales MEXICO
came from its Mexico is home to
International Wal-Mart’s oldest
Division. and most extensive
International international
sales during operations, with
fiscal 2001 were 499 units at the
$32 billion, an end of the year,
increase of more featuring six
than 41 percent different retail
over the formats and the
previous year. As country’s largest
international sit-down restaurant
operations continue to become a sponsorships, marathons and other chain. The Company changed the
larger portion of Wal-Mart’s total types of fund-raising events. name from Cifra to Wal-Mart de
growth, the Company is focused on Mexico and began trading its stock
aggressive, yet strategic expansion as WALMEX on the Bolsa,
BRAZIL
efforts abroad. Wal-Mart currently has 20 units Mexico’s stock market. Wal-Mart
throughout Brazil. The Company de Mexico is the country’s largest
As of January 31, 2001, there were entered the Rio de Janeiro market retailer and commands the second
1,071 stores – approximately one- during the year, opening two SAM’S largest market capitalization on
fourth of the Company’s total – CLUBS and one Supercenter. It also the Bolsa.
outside the United States. Over opened two additional Supercenters
25 percent of Wal-Mart’s new and one SAM’S CLUB in the Wal-Mart de Mexico opened
stores in the current year will be country and began construction of 39 new stores in fiscal 2001 and
in the nine countries that comprise a distribution center, which opened plans to open several new stores
the International Division. This in April 2001. Additionally, several in the current year. Wal-Mart de
expansion will be achieved through SAM’S CLUBS were remodeled to Mexico implemented its Every Day
a combination of new buildings, offer Customers an expanded fresh Low Price program in all of its
expansions and relocations. food selection. retail formats, including its
8

11. Supercenters, warehouse companies were combined
club and discount general to best meet the needs of
merchandise stores. As the Customer.
a result, Wal-Mart de
Mexico has experienced Primarily known as a food
extensive growth and retailer, ASDA’s profile has
customer support. begun to change with the
addition of the ASDA/
Wal-Mart Supercentre
GERMANY
Dave Ferguson, former concept to the retailing
director of Wal-Mart’s mix. There are now three
Canadian operations, was ASDA/Wal-Mart
named in fiscal 2001 as the new Supercentres in the country and
UNITED KINGDOM
President & CEO of Wal-Mart plans call for others to be located
After joining the Wal-Mart family in
Europe. He will continue to there in the near future. ASDA
1999, ASDA has proven to be a very
help the Company develop its continues to support the suppliers,
successful international venture.
business strategies and processes Customers and organizations
With 241 stores across the United
in Europe. within its communities. To date,
Kingdom, 100,000 Associates, or around 200 new suppliers, most of
Colleagues as they are called within
In fiscal 2001, Wal-Mart completed them British, have been recruited
ASDA, and an average of 7.8 million
renovation of 23 of its 94 stores to source the new Supercentres
Customers each week, ASDA is
in Germany. Wal-Mart Germany and more will be added to meet
likely to become the second largest
introduced Smart Price® and Great the local tastes and demands
supermarket chain in Britain in the
Value® private-label items in select of Customers.
coming year.
stores across the country, which
proved quite popular with CANADA
ASDA has long been a favorite place
Customers. There are now more Canada has been an extremely
to shop for Britons and customer
than 250 Great Value® items and successful and profitable
loyalty continues to grow under the
over 120 Smart Price® products international market for Wal-Mart
direction of Wal-Mart Stores, Inc.
available in Germany. The Equate® since the Company entered the
When Wal-Mart purchased ASDA
private-label body care line was country in 1994. With 174 stores,
in 1999, the best practices of both
introduced in June 2000. eight of which opened during fiscal
9

12. 2001, Wal-Mart is now Canada’s
largest retailer. Canadian Wal-Mart
FROM SUPERCENTER Stores have also become leaders
TO SUPERCENTRE in terms of generating new retailing
concepts and merchandising
from local Avon and Somerset
techniques, which have been
cheeses and breads to
adopted both in the U.S. and abroad.
sporting goods and optical
services. Among other things,
each store features fresh CHINA
produce, a deli with more Wal-Mart began operations in the
than 200 products including world’s most populous nation in 1996,
specialty meats, and ready-to-
opening a Wal-Mart Supercenter and
eat meals. The Supercentres
a SAM’S CLUB. China is an ideal
also include an electronics
example of how Wal-Mart
department and a photo
synthesizes practices to adapt to the
In July 2000, ASDA opened center. Among many other
communities it serves. Wal-Mart
the first ASDA/Wal-Mart offerings found at ASDA/
modified its shopping bags to fit the
Supercentre in Patchway, Wal-Mart Supercentres are a
needs of Chinese Customers who
Bristol, which instantly large number of global brands
usually shop daily for products and
changed the face of U.K. and products.
often arrive on a motorcycle or
retailing. With the addition
bicycle. During fiscal 2001, Wal-Mart
of Supercentres in Havant According to Wal-Mart
opened a new underground store in
in late October and Minworth International President & CEO,
Dalian beneath a new soccer
in November, the format John B. Menzer, “ASDA has
stadium. The subterranean format
has become an exciting proven to be a good fit for
was chosen to accommodate local
growth vehicle for our Wal-Mart. The cultures of both
needs and to address citizens’
U.K. operations. companies mesh well and the
aesthetic concerns.
Supercentres have been
Traditionally, ASDA has been embraced by Customers who
a food-oriented retailer, want the widest range of
SOUTH KOREA
choosing to devote products at the best value
With the world’s 11th largest
approximately 80 to 85 with the friendliest service.”
economy and a population of
percent of available retail
47 million, South Korea holds a
square footage to food Wal-Mart is committed to
wealth of opportunity to introduce
merchandising. Currently, continued growth in the
Customers to the Wal-Mart retailing
each ASDA/Wal-Mart U.K. The Company plans
practices of Every Day Low Prices,
Supercentre dedicates to open three Supercentres
great value and outstanding
approximately 60 percent of in fiscal 2002.
customer service. Wal-Mart entered
its space for grocery items
this new market with a Supercenter
compared to the typical “This is an exciting time for
in Taegu and now has six units.
Supercenter in the United ASDA in the United Kingdom
The Taegu Supercenter features
States which only has 30 and we are particularly
three floors of merchandise – two
percent allotted for groceries. excited about the strong
below ground and one above – and
consumer acceptance of
Supercentres offer Britons our new ASDA/Wal-Mart six floors of parking above the store.
over 40,000 products ranging Supercentres,” Menzer said. The Company plans to increase
Wal-Mart’s presence in the country
during the current fiscal year.
10

13. A HISTORY OF
INNOVATION
Forward-thinking is a Wal-Mart tradition.
suppliers to track merchandise to Wal-Mart works with suppliers to
study how products sell in any store develop PDQ displays for stores.
by region or by individual unit. They PDQs are self-contained displays that
can also review inventory levels, eliminate stocking individual
returns and inventory adjustments. merchandise on a shelf or hanger.
Many times merchandise can go
“We think sharing information with directly from the stockroom to the
suppliers allows for better input floor with little more than opening a
from them about how to maximize box. One example of how PDQs save
sales and profits. We can then time and money is our new battery
implement best practices and pass display. Before PDQs, an Associate
Wal-Mart has long been an
the savings on to Customers,” Kevin had to hang each battery pack by
innovator. Our founder, Sam Walton,
Turner, the Company’s Chief hand, which was labor-intensive.
spent his life coming up with ways to
Information Officer, said. Now, batteries come in prepackaged
better serve Customers. Mr. Sam’s
disposable trays and an Associate
culture of innovation still drives
Wal-Mart also uses its computer only has to remove plastic wrap to
Wal-Mart today during the most
network to directly enhance service move it onto the sales floor.
dynamic growth plan in our history.
in specialty divisions like Tire and
Lube Express. Using it, Associates Drive-thru pharmacy service is
Technology and logistics are among
can quickly identify vehicle service relatively new in retailing. All
the Company’s most innovative
records, and Customers can use Neighborhood Markets built last
areas. Our computer system is the
bar-coded cards at price scanners year feature this service. “Customer
most powerful in the corporate
in the store to see when their service convenience is the focus of our
world – only the U.S. government
is completed. Neighborhood Markets and we see
has a larger computer network.
drive-thru pharmacies as yet another
Wal-Mart’s philosophy of building
Wal-Mart’s sophisticated distribution service we can offer Customers,”
“people supportive” systems has
system has allowed the Company to said Ed Kolodzieski, Senior Vice
given us a competitive edge that has
easily manage over 3,100 domestic President of Neighborhood
and will be instrumental in the
stores in all 50 states. The Company Markets.
Company’s success.
continues to make advancements in
distribution and transportation and Wal-Mart loves to test new ideas and
Wal-Mart believes in building a
now moves over 50 million cartons of has little resistance to change. We
collaborative environment with our
merchandise per believe the surest way to predict
suppliers in which we work together
week to stores the future is to continue to
to grow both businesses and lower
and clubs. This invent it and all of our
retail prices for Customers. While
allows continued Associates are encouraged to
some retailers have been reluctant to
improvements in share ideas. Their thoughts and
share sales or other proprietary data
inventory ideas have helped establish
with suppliers, Wal-Mart has allowed
turnover and Wal-Mart as a pacesetter in the
suppliers this type of access since
merchandise dynamic world of retail and will
early 1991. This system evolved into
in stock. continue to push us forward.
a web-based product called Retail
LinkTM. It allows the Company and
11

14. CARING IN ACTION
Wal-Mart’s Associates Lead by Example On June 6th, Associates and World
War II veterans presented a gift of
almost $14.8 million to Senator
Wal-Mart Stores, Inc. is committed for their local schools. In addition,
Bob Dole, Chairman of the National
to strengthening and enhancing the Wal-Mart awarded scholarships
World War II Memorial Campaign,
quality of life in the communities totaling nearly $12 million to
during a special ceremony in
where our Customers and graduating high school seniors
Washington, D.C. The donation was
Associates live and work. In fiscal and other students pursuing
the largest gift given toward the
2001, over $190 million was raised higher education. Our commitment
construction of the memorial. There
and contributed by our Associates to education includes the Teacher
are approximately 1,900 World War II
and Customers and given back to of the Year awards, Students in
veterans who are Wal-Mart
our local communities. This is an Free Enterprise, the United
Associates. The memorial will
increase of over $32 million, all given Negro College Fund and the
honor the 16 million Americans
back to those who need it most. Hispanic Association of Colleges
who served in uniform during the
and Universities.
war, the more than 400,000 who
Associates are the lifeblood of
gave their lives and the millions
Wal-Mart’s community support. The Community Matching Grants
who supported the war effort
Associates direct 97 percent of program is one of Wal-Mart’s
from home.
Wal-Mart’s community involvement largest community initiatives with
initiatives. “Our Associates know over 3,000 locations participating.
One of Wal-Mart’s fastest growing
best what organizations and causes Last year, the Company awarded
programs is Volunteerism Always
are the most important in their more than 50,000 grants to local
Pays, or V.A.P. This program
communities, so we believe that organizations that held fundraisers
donates funds to local non-profit
they should be the ones who with our Associates.
organizations where Associates
determine how their Company
volunteer at least 15 hours a
supports the organizations who Throughout the year, Associates
quarter. According to Jay Allen,
are making a difference in the lives in the United States and Canada
Vice President of Wal-Mart
of our Associates and Customers,” sponsored a variety of fundraising
Corporate Affairs, Wal-Mart
Tom Coughlin, activities to support children’s
Associates give back to their
President & CEO, hospitals across North America
Community
communities 80 work years in
Wal-Mart Stores through the Children’s Miracle
volunteer hours annually. In
Division, said. Network. Our Associates’ hard
addition to the Associates’ valuable
work will help over 14 million
contribution of time, Wal-Mart
Wal-Mart Associates children receive the best medical
donated $1,500,000 to various local
are dedicated to care possible as well as address
charitable organizations across
a wide range of overall health care in our
the United States in honor of
programs. Since communities. Last year, our
our Associates.
the Foundation’s Associates and Customers raised
inception in 1979, and contributed around $31 million
Wal-Mart’s corporate citizenship
one of our primary dollars for their children’s hospitals.
extends well beyond U.S. borders
areas of focus has One hundred percent of the funds
and into every country in which the
been education. remain with the children’s hospital
Company operates. For example,
In 2000, our to fund medical research, provide
Associates and suppliers in China
Associates raised medical treatment to local children
donated time and provided financial
and contributed and supply money for hospitals to
assistance last year to senior
nearly $11 million purchase new equipment.
12

15. Education
citizens and orphans. Wal-Mart integral way
Germany Associates raised money of life at
REUNITING to fight Duchenne Muscular Wal-Mart.
FAMILIES Dystrophy (DMD), a debilitating Our pledge is
disease for which there is no cure. that we will
Wal-Mart’s In South Korea, Wal-Mart’s Inchon never lose sight
Missing Children’s Network store donated glasses to needy of the
children and provided scholarships responsibilities
Every day, thousands of children for students in their local of good
are reported missing from their communities. Wal-Mart de Mexico, corporate
families, according to the National along with the National Vaccine citizenship, and
Center for Missing and Exploited Center, organized three national that
Children (NCMEC). Thanks to weeks throughout the year when Wal-Mart
Wal-Mart and SAM’S CLUB people were given free vaccinations will continue
Customers and Associates, in stores across the country. to support
20 children – a record number – worthy
were reunited last year as a These are just a few of the many programs
direct result of recognizing and ways in which Wal-Mart Associates through financial grants,
responding to the pictures on are making a difference in their in-kind donations, and most
our Missing Children’s Network communities. Their generous importantly, through the leadership
bulletin boards. donation of time, talent and money and volunteer efforts of our
has made corporate citizenship an caring Associates.
In 1996, Wal-Mart teamed with
NCMEC to begin the Missing
Children’s Network bulletin boards,
which include photos of missing
Wal-Mart Stores, Inc. Community Involvement In Fiscal Year 2001
$71,365,980
children, relevant personal data
about each child and the toll-free
NCMEC hotline. The boards are Grand Total: $190,330,200
posted in Wal-Mart stores, SAM’S
CLUBS and Neighborhood
Markets across the country.
Since the program began,
$31,195,296
3,400 children have been featured
on our boards and more than
$20,432,657
$19,391,752
2,100 have been recovered.
$14,751,360
There have been more than
50 recoveries as a direct result
$7,365,342
$7,630,946
$5,200,000
of our Customers or Associates
$3,024,752
$3,145,186
$1,302,817
$2,132,001
$1,513,000
recognizing one of the photos and
$1,879,111
reporting it to the NCMEC hotline.
“The Missing Children’s Network is
a program that our Associates and
Customers feel strongly about.
Every parent can empathize with
the heartache a family must feel
Holiday Charitable Contribution
each and every day their child is
Community Matching Grants
Children’s Miracle Network
Store Contribution Account
Volunteerism Always Pays
missing. I really have to give credit
Economic Development
World War II Memorial
Make A Difference Day
In-Kind Contributions
to our Customers and Associates
Teacher of the Year
Other Donations
for the tremendous success of
Scholarships
Environment
United Way
this program,” H. Lee Scott,
President & CEO of Wal-Mart
Stores, Inc., said.