Walmart to expand self-checkout format

Every second Walmart spends $12 million in cashier wages, which has prompted the retail giant to expand its self-checkout format this year, according to Charles Holley, Walmart’s chief financial officer.

Holley spoke to investors and analysts Wednesday morning (March 7) at the Bank of America retailing conference in New York.

He said self-checkout will be added to 220 more Sam’s Club stores this year. Right now, only about 80 stores have that capability.

Holley said finding savings in the company’s routine operations is imperative in the quest to deliver “Every Day Low Prices” consistently year-in and year-out.

He said Walmart will continue to leverage technology to boost cost savings throughout it’s supply chain.

The customer service station will also move closer to “action alley” in an effort to save steps and increase efficiency, he said.

In fiscal 2013 Walmart plans to build between 10 and 15 new Sam’s Club stores, in addition to somewhere between 80 and 100 Neighborhood Markets – some of which will be small format stores.

Holley said Sam’s Club and Neighborhood Markets continue to perform very well in terms of comp sales and traffic.

“Our Neighborhood Markets now have the same return on build out as our super centers,” Holley said.

Analyst ask if Walmart is concerned that concentrating Neighborhood Markets will cannibalize sales of Walmart Super Centers.

Holley said, while there is some overlap, areas that have both store formats consistently perform well.