This story about Walmart is completely astonishing. Not only does it show the importance of going over every company cost with a fine-tooth comb and always looking for cost-cutting measures no matter how small, but it also punctuates how gigantic of an organization that Walmart is. During a presentation at its 2017 Investment Community Meeting on Tuesday, the world’s largest retailer revealed how they saved $27 million by making two super tiny tweaks.
Walmart CFO Brett Biggs was speaking to the investors of the retail giant in the company’s hometown of Bentonville, Arkansas. Biggs was reviewing the corporation’s financial discipline, forecasts, and strategic plans for the next couple years. On the topic of efficiency, Biggs revealed two amazing cost-cutting measures the company made to save $27 million. Biggs noted the company made a small change to the plastic bags used by Walmart. That tiny change saved the company $20 million. “A simple change to our plastic bags at Walmart U.S. resulted in an annualized savings of approximately $20 million,” explained Biggs.
Walmart also made another seemingly insignificant change that resulted in a very significant source of money. “A decision to shorten the length of the receipts, saved over $7 million,” Biggs said during the presentation. It’s just that simple to save tens of millions when you’re a goliath like Walmart. Simply change your bags and shorten your receipts. This is an incredible example of controlling costs and running a streamlined business to increase profits.