Walmart’s Scott gives last speech as chief executive[SIZE=-1]
On the economy, Scott sees little reason for outright optimism. ?We?ve all had a tough Christmas,? he lamented, ?and I don?t see anything that tells me it?s going to turn around quickly.? Even with a new economic stimulus package from the government, Scott predicted the first half of 2009 will be ?extraordinarily challenging,? but said he?s hoping that the second half will be a bit better. Ultimately, he said, he hopes things won?t get any worse by next holiday season.
When the faltering economy eventually does rebound, Scott is doubtful consumers will return to their free-spending, debt-ridden ways.
?I?ve seen fundamental changes in spending habits,? Scott noted, saying that he holds monthly meetings with 50 young shoppers to ask them how the economy has altered their behavior. ?Some have given up eating out, going to the movies, or shopping,? he said. ?Everyone have given up something, and everyone said how good they felt about it. A lot of young people have learned what it?s like when you?re living on the edge and the bad times come. Their appetite is now towards more about living things differently.?
Surprisingly, Scott said he believes that society would be better served if consumers moved away from conspicuous consumption, a comment that startled many in the audience.
?While it?s tough for us as retailers, I?m not sure if it?s all that bad from a societal standpoint. I?ve been worried for a long time that someone in 2007 is selling furniture and your first payment is 2011. Is that healthy? I worry about those things.?
Scott said the election of Barack Obama offers a momentous opportunity for government to put aside partisan bickering, gamesmanship, and self-interests, and instead focus on the common good to solve the nation?s most critical problems.
He urged retailers to get involved, too, in issues such as immigration reform, expanding health care coverage, energy independence, and environmental sustainability, and by doing so it would improve their image with shoppers and, in turn, boost their bottom line.
Scott scolded decision-makers for not acting sooner. ?Why didn?t we solve these problems before ? two years ago when the stock market was above 14,000, eight years ago when we were a nation at peace in the world, or 10 years ago when we had a federal budget surplus?
?From what I?ve learned in business and seen in Washington, the hard questions rarely get answered during the good times. They?re just too easy to ignore. Unfortunately, it takes a crisis or period of great difficulty to face challenges and change.
?The temptation will be for everyone to choose sides, go to their corner and, when the bell rings, fight it out. But as the American people know and all of us in business know, you do not get things done this way.?
As for his future plans, Scott laughed when asked if he?d be interested in the job of secretary of commerce in the Obama Administration, saying was looking forward to a long vacation with his wife, a luxury he?d had only twice in all his years with Walmart.* Scott will remain with the company as a consultant for two years to help new CEO Duke with the transition.
So how would Lee Scott like to be remembered?
?I have considered myself like Chauncey Gardiner in ?Being There,?? said Scott, referring to the Jerzy Kosinski novel and, later, movie starring Peter Sellers, about a slow-witted gardener whose simple words end up being interpreted as brilliant insights.
Scott attributed his success to surrounding himself with people who ?are better than I am,? listening to them, emboldening them to move fast and aggressively, and giving them the credit they deserve.
?I started out as an assistant manager of a truck fleet,? he said.* ?I want to be able to walk out of my office on the 31st of January, turn out the light, and believe that Sam Walton would be proud of what myself and my team accomplished. If I can do that, I feel good about it.? During Scott?s tenure, Walmart was a frequent target of criticism. Unions fought with the company over issues of wages, health care, and the environment. More recently, however, the company has tried to polish its image by launching initiatives to reduce excess packaging and increase sustainability, improve working conditions, health-care benefits and wages, and monitor suppliers? overseas factories for labor abuses. In addition, the company has expanded its $4 generics program to make prescription drugs more affordable.
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