Walmart U.S. CEO on rollback of DEI programs, potential impact of Trump's proposed tariffs

Summary

In an exclusive interview, Walmart CEO John Furner discusses the company’s strategy on diversity, equity, and inclusion (DEI) amid changing political pressures. He addresses Walmart’s commitment to small U.S. suppliers and its focus on keeping prices low for customers, especially during the holiday season. Furner also provides insight into how Walmart plans to navigate potential tariff impacts, particularly with regard to President-elect Trump's proposed tariffs. Additionally, he highlights trends in consumer shopping behavior, noting strong performance in apparel, home goods, and toys as the holiday season approaches.

Takeaways

• 😀 Walmart is the largest retailer in the U.S., employing over 1.6 million people with global annual revenues nearing $650 billion.
• 😀 Walmart has been on a journey to ensure a welcoming environment for all customers and associates, emphasizing 'belonging' over 'diversity, equity, and inclusion' (DEI).
• 😀 The company is adjusting its DEI programs by phasing out the term 'DEI' and winding down its Center for Racial Equity.
• 😀 Walmart will no longer prioritize suppliers based on race or gender diversity, focusing instead on providing opportunities for small businesses and local suppliers.
• 😀 Walmart continues to support 'Made in the USA' products, with about two-thirds of what it sells being made, grown, or assembled in the U.S.
• 😀 The company is committed to helping small suppliers succeed, with programs like 'Open Call' to welcome new entrepreneurs and products.
• 😀 Walmart has a well-established team that manages supply chain challenges, especially when it comes to tariffs, which it has been dealing with for the past seven years.
• 😀 President-elect Trump’s proposed 25% tariff on imports from Canada and Mexico could affect Walmart, but the company will adjust to any potential price increases.
• 😀 Despite challenges, Walmart's primary goal is to keep prices low for customers, especially during the holiday shopping season.
• 😀 Walmart is seeing strong demand in its apparel, home, and toy categories, indicating that shoppers are anticipating a busy holiday season.
• 😀 The holiday shopping window this year is shorter due to the calendar, but Walmart expects a more intense shopping season between Thanksgiving and Christmas.
• 😀 Walmart is offering Black Friday deals, including a Thanksgiving basket for under $7 and discounted items like televisions for $228, to attract holiday shoppers.

Q & A

What prompted Walmart's decision to pull back on diversity, equity, and inclusion (DEI) programs?

Walmart's decision to scale back on DEI programs comes under pressure from conservative activists. The company is winding down its Center for Racial Equity, phasing out the term 'DEI,' and revising its approach to supplier diversity and product listings on its website.

How does Walmart define its approach to 'belonging'?

Walmart has shifted its focus from DEI to a broader concept of 'belonging,' which they introduced in early 2023. The goal is to ensure that every customer and associate feels welcome, respected, and valued in the Walmart environment.

Is diversity among Walmart's suppliers still a priority?

Yes, diversity remains important to Walmart. The company continues to support small U.S.-based suppliers and provides opportunities for them to succeed at Walmart. They emphasize that about two-thirds of what they sell is made, grown, or assembled in the U.S.

What impact would President-elect Trump's proposed tariffs on Canadian and Mexican imports have on Walmart?

The proposed 25% tariff on Canadian and Mexican imports could potentially increase costs for certain products. However, Walmart has a team in place to manage such challenges and will work with suppliers to maintain low prices for customers. Walmart’s emphasis remains on ensuring the best value for shoppers.

How does Walmart plan to handle any price increases from tariffs?

Walmart intends to manage the impact of any price increases through its efficient supply chain and strong relationships with suppliers. The company will focus on maintaining low prices for customers, even in the face of potential tariff-related cost hikes.

What are some of the popular items customers are purchasing this holiday season?

Walmart has seen strong sales in several categories this holiday season, including apparel, home goods, and toys. These trends suggest that shoppers are preparing for a busy and festive holiday period.

What initiatives is Walmart implementing to support small suppliers?

Walmart continues to support small U.S. suppliers through initiatives like the 'Open Call' program, where small businesses and entrepreneurs are invited to present their products. The company is committed to providing pathways for these suppliers to succeed in their business ventures.

How is Walmart preparing for the shorter holiday shopping window this year?

With a shorter shopping window between Thanksgiving and Christmas, Walmart is gearing up for a busy retail period. The company expects intense shopping activity and is focusing on offering great value through promotions like discounted Thanksgiving baskets and Black Friday deals.

What specific deals and promotions does Walmart have for the holiday season?

Walmart is offering several attractive deals for the holiday season, including a Thanksgiving basket for under $7, which contains 29 ingredients for a quality meal. Additionally, the company is offering Black Friday deals like a 65-inch television for $228.

How does Walmart balance its commitment to U.S. manufacturing with global supply chains?

Walmart maintains a strong commitment to U.S. manufacturing by sourcing about two-thirds of its products from the U.S. while still engaging in global supply chains. The company focuses on supporting small businesses, creating pathways for U.S. suppliers, and leveraging its global network to keep costs low for customers.