Hypo Venture Capital Zurich Headlines: Walmart Exec Says Chicago Suits Chains Growth Plans

Hypo Venture Capital Zurich Headlines: Walmart Exec Says Chicago Suits Chains Growth Plans

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By Sandra Guy Business

http://www.suntimes.com/business/6205831-420/walmart-exec-says-chicago-suits-chains-growth-plans.html


Thomas A. Mars, Executive Vice President and Chief Adminnistrative Officer of Walmart U.S. speaking at the Metropolitan Planning Councils annual luncheon today, June 27, 2011. | Photo by Karen Kring
Updated: June 27, 2011 4:57PM

A top executive of Wal-Mart Stores Inc. told local business leaders Monday that returns from the companys small-format stores have recently become as profitable as those of its well-known supercenters.

The changing business model means that Chicago is the best venue for Walmarts growth, said Thomas A. Mars, executive vice president and chief administrative officer of Walmart U.S., during the Metropolitan Planning Councils annual luncheon at the Hyatt Regency Chicago.

The climate also gives Walmart the incentive to launch in Chicago its nationwide minority supplier program, Mars said. The program aims to increase the diversity of the retailers suppliers, primarily in food, general merchandise and professional services. No launch date was immediately available.

Mars didnt say it aloud, but observers said after his presentation that Walmart undoubtedly perceives Chicago as a more hospitable political climate, too, despite continued protests by labor unions and some residents and politicians about its worker policies.

Jesse Ruiz, vice chair of the council, led the discussion, titled, What, Where and How? Rethinking the Retail Landscape.

Walmart operates 59 stores in the Chicago metropolitan area, including one in the Austin neighborhood inside the Chicago city limits. The Bentonville, Ark.-based Walmart has announced eight other Chicago sites where it plans to open full-size and smaller-format express stores, and intends to eventually operate dozens in the city.

This second city thing? We didnt get the memo, Mars said. We dont buy that and never have.

Statewide, Walmart operates 180 supercenters, 28 Sams Clubs and five distribution centers, and employs 50,166, making it one of Illinois largest private employers.

In Chicago, Walmart will use its experience operating stores in other urban and under-served areas and intends to reduce the cost of living for nearby residents, Mars said.

We want to go where the customers need us the most, he said.

Diversitywhether in the communities that Walmart serves or its internal operationsplays a part in the retailers expansion plans, Mars said.

The most important epiphany Ive had in my adult life is the way we look at diversity, he said. We look at it as a way to improve talentyou start to see the world in a different way.

Mars, a former general counsel for Walmart, helped lead an effort to transfer $60 million of business to minority and female partners in law firms with which Walmart does business.

Mars pointed out that Walmart CEO Bill Simon attended Mayor Rahm Emanuels meeting earlier this month in which supermarket executives pledged to build new stores in so-called food deserts as part of the mayors action plan. Food deserts are areas where residents must make an effort to find fresh produce and affordable groceries, including having to drive out of their neighborhood or take a cab or public transportation to get fresh, affordable and healthy foods.

Walmarts expansion here will enable local residents to see greater evidence of its six-year-old efforts to save energy and improve sustainability, Mars said.

The retailer has changed its packaging and the way it packs its trucks, developed a hybrid tractor-trailer and has installed solar roofs on some of its stores, he noted.

People hired by Walmart will benefit from another new program in which Walmart gives its employees, called associates, credit toward achieving an associates, bachelors or masters degree, Mars said. He said the educational program is part of its efforts to address urban issues.

About the Author:
A top executive of Wal-Mart Stores Inc. told local business leaders Monday that returns from the companys small-format stores have recently become as profitable as those of its well-known supercenters.



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