Walmart International’s CEO on what it takes to run a global business

Last week, at the Consumer Goods Forum’s Global Summit, Walmart International’s chief executive and president Judith McKenna shared her views on the opportunities that exist in global retail. McKenna, who oversees Walmart’s international operations in Canada, Africa, China, Central America, Mexico and India, as well as its equity investments across Brazil, Japan and the United Kingdom, told CGF’s managing director Wai-Chan Chan how the $147 billion (US$100 billion) business keeps its vast international reach under control. When it comes to doing business globally, McKenna said it’s important to keep in mind that not everything a business does will apply to each market it operates in.“Should you be global or local? The answer is yes, [but] don’t assume everyone is going to follow a similar curve. The one that is really amazing to me is the adoption of digital payments,” McKenna said. “We have this simple strategy, which is also our operating model, which is ‘strong local businesses, powered by Walmart’. [This way] we have great businesses that are locally relevant and can be positioned for growth within each market.”So, how does Walmart decide where to do business? It focuses on the places where it sees the most potential for growth. About five years ago, the retailer pulled out of several markets in order to focus on a stronger global offering. “We put the prioritisation by market as to where we saw the greatest opportunity, and where we could have both a strong local business and create unique advantages for them,” McKenna explained. Additionally, the group looks for commonalities across markets that it can leverage to uplift all of its international businesses at once.“The first [thing we focus on] is creating a market-leading omnichannel business. The second is creating scaled global marketplaces, and thirdly, we think about building new and complementary businesses and income streams [to support each region’s business],” McKenna said. “Fourthly, we think about connecting customers digitally to create stickiness in our ecosystem, and the fifth one, which is massively overlooked, is to [have] brilliant talent everywhere.“You cannot run any business, but you certainly cannot run a global and international business, without having talent, and it amazes me how often [that happens].”Expat engagementOne of the main ways that Walmart attracts and retains talent in the business is through an international program which gives employees three- to six-month assignments in different markets to work on specific projects.This not only keeps staff engaged, it also sparks their interest in global roles and creates new opportunities within the business. “There’s all sorts of ways to do it, and sometimes there’s a language barrier, [but] people are adaptable,” McKenna said. “I’ve heard some fantastic stories about people teaching themselves a new language in order to go to new places [in our business]. It’s a really critical part of what we do.”“People still want their little indulgences”While operating an international business takes a lot of work, it also shores Walmart up against both domestic and international issues. The current inflationary environment, for example, is impacting the business across all of its markets, but each one is impacted differently.“There’s a wide variety across the markets,” McKenna explained. “China has the lowest inflation that we have, India is pretty stable, all the way through to Chile, where you’re seeing almost 40 per cent inflation.“However, we’re also seeing everywhere that people don’t want to compromise on experience and convenience. We’ve seen really strong growth in our omnichannel business because people want the convenience [it offers] – people still want their little indulgences.”