March 25, 2025 • 43 mins
Walmart retail veteran Deanah Baker steps into a new role at Doing Business in Bentonville, bringing three decades of transformational leadership experience to the podcast.
As the former Senior Vice President of Omni-Channel Merchandising at Walmart, Baker offers unprecedented insights into navigating retail's most challenging transitions - from brick-and-mortar to omnichannel and beyond.
Baker's story is one of strategic vision and practical execution. During her 32-year Walmart career, she managed a $25 billion P&L while orchestrating massive transformations in how customers shop for apparel.
From consolidating private brands to implementing game-changing RFID technology that revealed 30% "ghost inventory," her innovations fundamentally changed how Walmart serves its customers across physical and digital touchpoints.
What makes Baker's perspective particularly valuable is her focus on "navigating the gray" - making decisive moves despite incomplete information.
"You have to be comfortable making decisions without knowing all the answers," she explains, revealing how successful retail leaders balance the certainty of customer-centricity with the ambiguity of transformation.
Her implementation of the "Store of the Future" concept for apparel departments demonstrates how retailers can evolve their physical presence while embracing digital integration.
Baker's upcoming podcast series will feature respected industry leaders, beginning with Terry Truffles from Interdeco discussing how to maintain win-win supplier-retailer partnerships despite today's challenging business environment.
Her story of learning the sock business from supplier Vic Stober exemplifies her leadership philosophy: stay humble, use intuition to build trusted relationships, and recognize that humility isn't weakness but "quiet strength."
Join us monthly as Deanah Baker shares the insights, strategies and leadership principles that transformed Walmart's approach to omnichannel retail - lessons that remain essential for anyone navigating today's rapidly evolving retail landscape.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:07):
Hello everyone and welcome to Doing Business in
Bentonville.
My name is Andy Wilson, I'myour host today and thank you so
much for joining us.
Before we get started in ourpodcast this morning, I want to
tell you how much we appreciateyour feedback and your viewing
and sharing and all the greatthings you're doing.
Because of you, we continue togrow.
(00:27):
We're now viewed in over 90countries.
We have up to 2,000 plus viewsa day.
So thank you so much.
We couldn't do this without youand it means so much to us here
at Doing Business inBentonville that you're
supporting us, so thank you forthat.
My guest today is Deanna Baker.
Deanna, welcome, thank you somuch.
Okay, listen, this is a big.
(00:47):
I'm just saying I have beenlike trying to get Deanna Baker
for a year.
She finally is back and we'regoing to make some announcements
about her.
I mean, she's back like bigtime at doing business in
Bentonville.
I can't be happier.
Speaker 2 (00:59):
I'm telling you Well, thank you.
I love your cheerleader numberone, Thank you.
Speaker 1 (01:03):
Oh, I'm telling you I'm so happy.
Well, thank you, I love yourcheerleader number one, thank
you.
Oh, I'm definitely a bigcheerleader, no question about
it.
Today, what we're going to dois this Deanna and I are going
to talk about her past atWalmart stores and what she's
going to be doing in the future.
But the thing that we're goingto announce today that Deanna
Baker will become a DoingBusiness in Bentonville
(01:24):
contributor.
Now, what is that, andy?
What is a contributor?
Well, you're going to get tosee more of her in the future.
She's going to be here hostingher own program for DBB and with
her guests, and she's got somewonderful guests that she's
working with and she's going tobe focused around, of course,
omni-channel and retail, andthere's so many stories that she
(01:47):
can talk about her career.
So what we're going to do isdive a bit into her career so
you can get to know her andappreciate her, and then we're
going to get into some thingswe're going to talk about around
retail and Omnichannel.
So, deanna, again, I can't bemore happy that you're going to
(02:08):
be part of doing business inBentonville.
Speaker 2 (02:10):
Oh, thank you, Andy.
Thanks to you and to the teamat doing business in Bentonville
, it's quite an opportunity forme, and you know, reflecting
back but then how it applies totoday's business environment and
where to go forward.
To me is just that continuallove of retail, and so I am
fortunate to get to still sharethat.
Speaker 1 (02:30):
You do so.
Speaker 2 (02:31):
I'm really happy with the opportunity, Good Well.
Speaker 1 (02:34):
I would say that we grew up at Walmart together.
Deanna.
If I said that, you would thinkshe started when she was a baby
.
So we just spent we worked atWalmart together for a long time
and had such respect.
But, Deanna, what I'd love todo is just share with our
viewers about your time atWalmart, what you've done, and
(02:58):
then a bit of what you're goingto do in the future, and then
we'll get into some of the moredetails about your expertise and
the impact that you have had onretail and on each channel and
what the impact you'll have inthe future.
So share a bit about yourself.
Speaker 2 (03:16):
Well, as you said, majority of my career was with
Walmart 32 years to be exact,and I hang on to those two years
because so much happened in thelast two years that were
beneficial and such an educationI can go into that.
But merchandising the entiretime, primarily in apparel, but
(03:37):
also about three years inoutdoor living, so you know the
ends of the box, I guess, andlearned so much I've referred to
(03:59):
it as an incredible educationthat I was able to achieve and
of the retailer you work for,the supplier that you work for,
it begins with an appreciationfor who you serve and then you
make all the right decisions forthat customer.
So, 32 years at Walmart.
The last role was senior vicepresident, omni-channel
(04:23):
merchandising.
I specifically had bothchannels for men's, kids', baby'
and footwear, and in 2020, Iretired in 22, we merged the two
channels together brick andmortar and e-commerce.
So not only did I have to lead ateam, I had to learn quickly
(04:45):
for myself what it meant to leadboth channels and how to make
both successful and actuallysynergistically better together
than they were apart.
And so that was a quick, quicklearning for myself and the team
.
But then there were so manyother transformational things
that were already underway,specifically at store level,
(05:06):
which we can get into later, butjust in how we managed the
assortment at store level andhow we brought that to a place,
we could leverage the technologythat the whole company was
utilizing.
I desperately wanted my apparelteam to be part of that
solution, in goodness and I'mreferring to curbside pickup and
(05:29):
delivery and my team being apart of that and so there was a
huge transformation going on inthe midst of putting together a
team, an omni-channel team, andbeing a student of an entirely
new way to me at the time ofdoing business through
e-commerce.
Right, and you know, my peershad the flip experience where
(05:52):
they were raised in ane-commerce environment and
needed to learn a 4,500 storechain business and how do you
manage that?
So rich learnings in those lasttwo years for me.
Speaker 1 (06:04):
Wow.
You know, so many of ourviewers are in that transition
and that's why I think you'regoing to be so helpful, because
you're going to be able to helpteach and help our viewers
navigate the transition that youhave been part of.
And that's one of the reasonswe're so excited that you're
(06:24):
going to be part of doingbusiness in Bentonville and from
going from brick and mortar toe-commerce.
It's huge, and a thing thatDeanna will be doing is really
helping you navigate that space,because you've done it
successfully.
And now some of the things thatyou have done I think would be
(06:48):
good from a standpoint of reallypeople understanding your
credibility and your backgroundis let's talk about some of
those key areas that you didnavigate and let's just start
with the strategic growth andmarket insights.
Talk about that one.
There's all of these thingsabout navigating that space.
Really, I mean not only yourcareer, but I will tell you I
(07:13):
talk to people almost daily that, okay, andy, how do you
navigate Omnichannel?
How do you make sense of thiswhole crazy thing?
Because you know, andespecially, people that are
brick and mortar and want to getinto e-commerce.
So, anyway, that's going to bereally great.
So let's talk about strategicgrowth and market insights.
Speaker 2 (07:36):
Well, if I go back to my experience in this space,
like I said, you knowtransformations Well.
When you take in 30 plus years,you're going to have a few
transformations right, and I wasprivileged to have a seat at
the table through those asWalmart matured and progressed
in retail.
(07:56):
But if I go back to the examplein 2020, I was fortunate enough
with the leadership team of theapparel group cross-functional,
by the way to put together afive-year strategic plan and it
encompassed what I knew well andwhat I was like I said, rapidly
learning into Omnichannel, andnot one of us it didn't matter
(08:21):
where you came from and whatyour discipline had been in the
past had all the answers andtrying to understand how they
can work togethersynergistically to, to you know,
create a five-year plan was waschallenging.
You know, we started with fromthe facts of what we knew and
what we knew ourselves to be,but then where did we want to go
(08:43):
and, most importantly, at whatspeed?
And we didn't have all theanswers.
So to me, that was a crashcourse in understanding what a
true strategy is, in that youknow where you want to go in the
future, don't exactly know thepath to get there.
Speaker 1 (09:00):
Right.
Speaker 2 (09:00):
And so we all had to work together and revisit it a
lot to make sure we were stillon the path that we wanted at
the speed we wanted, and thatentailed everything from.
You know, I was doing it fromthe SVP level and up for total
apparel.
I was concerned with how thatdovetailed into where the
(09:21):
company was putting resourcesand what the company cared about
.
Right To be an offshootwouldn't have helped anyone,
right, and I wanted to be partof those resources that were
being created and being deployedfor the benefit of the customer
.
But it wasn't just totalapparel.
I then had to work with mydirect team of vice presidents
(09:44):
and what did their part of thepuzzle look like for their
business?
I mentioned like one of myteams was kids and boys and
girls at a VP of that.
What did he need for his teamto be successful in the kids
industry and grow market sharein the kids space, market share
(10:06):
in the kids space, and how couldwe work that into the
overarching strategy to where itwasn't just total apparel
winning, but they got to win asa team as well in the kids
business.
So all of that being puttogether was an incredible
education for me today the way Iapply that in consulting is,
whenever I work I'll use theexample of a supplier.
I have to think about it fromtheir vantage point of who are
(10:30):
their retail partners and who dothey serve the ultimate
customer?
How has that worked in the pastfor them?
Do they need to switch gears?
Do they need to resource forthe future?
Are they structuredappropriately to do that future
business?
And really guiding them tothink further than making that
(10:52):
year's budget to what do youneed to be thinking about now
that you won't even benefit fromuntil two years from now?
Because it's two years is likethat in retail, we know, but so
much of the time we get mired inthe most critical of the moment
stuff.
Speaker 1 (11:10):
You know, one of the things that Deanna will be
sharing on future podcasts isreally how to do this, how she
navigated that.
Plus, as she mentioned, she hasher own company, dino Baker
Consulting, and so she'll be uh,we'll be sharing all that
information with you so you canreach out, how to contact her
and and and and work with herthrough navigating all of this.
(11:34):
Um, so that's going to beexciting.
And then, uh, uh.
Now you know, one of the thingsyou talked about in your
expertise and impact was thiswhole retail and business
intelligence.
Talk about that, because I knowso many of our viewers are
(11:54):
dealing with that today reallyhow to equip leaders and teams
and today, this fast rocket shipwe're riding on each other.
Speaker 2 (12:07):
Share that.
I think it's imperative that weall stay current and that's
reading a lot of articlesstaying close to different
retailers, different suppliers,both e-commerce, brick and
mortar, the way they areapplying the two together,
because you'll see differentapproaches and being a fast
(12:30):
student of what's going on.
As we know, there's so manyvariables at play right now and
how people navigate.
That will be interesting to seethe take on it from different
companies.
But you know again on it fromdifferent companies.
But you know again, applyingwhat I know to how it can help
in the future In retail.
(12:51):
We all are aware that no twodays are alike.
Right.
The variables keep changing.
That's what keeps itinteresting but also can be
frustrating.
But applying great experiencesand the outcomes to the trends
and what I see happening infront of us today, I think can
help predict outcomes.
So you know, if I can teach andtrain through different
(13:15):
scenarios that companies haveissues that they're facing with
my past experiences for a greatfit that will lead them into the
future with today's environment, then I feel like we can create
some real winning outcomestogether.
Speaker 1 (13:32):
Right, you talked about a few minutes ago about
the transition that you wentthrough from brick and mortar to
omnichannel online toOmnichannel online and I know
one of the things that you focuson in your company is this
business model adaptability,Because your business model
(13:54):
changes and I know we have a lotof viewers today like, yes, my
business model is changing.
How do you approach that?
What's your thoughts on that?
Speaker 2 (14:03):
Well, I think you have to be uh, you have to have
a future vision of, let's say, acouple years from now.
I'm going to be need to be goodat this.
Or even further out, five years, even better.
Um, I'm not there today, my, mycompany is not there today, but
I see the future and the wayit's trending.
(14:24):
I'm going to need to be good atthat.
And so I think you have tostart laying plans out now that
make that a slow and steadyprogression towards that, not
hanging on until the bitter endwith an old business model,
because to me, that leads topain.
It's hard for people to change,and the longer you
(14:45):
procrastinate, the harder thatchange is going to be and it's
going to be under duress.
So, if you can start theprocess now and again, there is
no perfect blueprint or peoplewould have already done it right
.
So you have to stay nimble, youhave to be curious and you have
to change before You're forcedto.
Speaker 1 (15:07):
Yeah.
Speaker 2 (15:08):
And so to me, that's really what the business model,
adaptability, is Right.
And let's just say you get intoyear three of the five-year
example, and what if the goalhas changed?
Yeah Well, are you better forhave at least progressed in that
direction?
I would argue every time,absolutely, absolutely.
Speaker 1 (15:29):
Right, well, I mean your five-year business plan.
It's like you mentioned earlier.
It's continually changing andyou know, at Walmart we were
taught by Mr Sam.
The most consistent thing atWalmart was change and we have a
, you know, and today, evenbecause of that philosophy it
was ingrained in us, because wetalked about it every week,
(15:51):
because we changed it every weekthat's how we run our lives
almost now.
Yeah, you mentioned nimble andI love that word.
Curious, because you should becurious.
Is there any companies thatcome to mind that are doing it
really well and some that stillgot a ways to go that just come
(16:15):
to mind?
Speaker 2 (16:16):
Well, goodness, I mean, we know who's winning in
the retail space, right?
And I think what I admire abouteach of those companies is they
are true to who they are andthe customer they serve, and
they do that very well, and itdoesn't mean that you always
stay the same Again.
If you keep the customer thatyou serve at the center of all
(16:39):
of your decisions and that'swhat we were taught as well
right, you're innovating forthem, you're staying close to
what they're telling you throughwhat they purchase feedback,
close to what they're tellingyou through what they purchase
feedback, and you're drivingyour future state of where you
know that your customer wants togo.
I would say, though, as amerchant and I use the term
(17:02):
merchant broadly I don't care ifyou're in supply chain or if
you're in operations or you're abuyer.
That's your day job.
You have to get comfortableliving in the gray.
You have to be comfortable inmaking decisions without knowing
all the answers, and I thinkthat's okay, because I think
(17:24):
progressing forward requiresthat If you make a misstep, you
can quickly correct, and then,as a leader, the real trick to
me is how do you lead people ina gray area?
Right, and so what?
That comes back to the valuesof your company, what your
company stands for, again, whoyou serve, and and just being
(17:47):
really transparent with yourteam on.
Here's what we're thinkingtoday, here's why we're doing it
and leading your team throughthat so they can manage that
state, because you know somepeople are comfortable with
making decisions without having100% of the answers and I think
that's a skill in itself to beable to navigate in that area.
Speaker 1 (18:11):
I think you just gave us all a great lesson in
leadership, because you're rightabout navigating the gray, and
when you said that, what comesto my mind it's like, you know,
driving in the fog and we hadsome fog driving in today here
and you know, if you brightenyour lights, it's more difficult
(18:32):
to see in the fog, and so youhave to navigate through it, and
that's navigating it great, andI think all the points you
talked about just now is a greatleadership lesson to all of us
on how we navigate and lead inthis ever-changing world of
Omnichannel.
You know, and so, so, perfect,this is great.
(18:57):
Oh, um, I told you this isgoing to be good, right, and so
anyway, let's let's talk about acouple of things.
Then I want to get to some ofthe leadership and some of the
achievements.
So, so people could really, sopeople really really understand
all that you've done.
But you know, one of the thingsthat your company is going to
do is help people go to market.
(19:17):
Going to market is differentnow, isn't it?
Speaker 2 (19:24):
Talk about some of that.
What are your thoughts aroundthat?
Well, to me, my first lovewithin the job is the creation
of products and services for thecustomer and bringing those
ideas to bear.
Um, and so many good ideas fail, not because they were a good
idea, a great idea, but theyjust weren't separated through
(19:45):
the entire process and um.
So when I think of you know, ago-to-market strategy, it's
literally shepherding aconceptual thought into physical
product or brand.
It could be a solution for thecustomer.
It doesn't have to be a thing,a widget that, through to final
(20:13):
purchase, whether it's one-commerce or a brick and mortar
experience, is part of thego-to-market strategy for your
item.
In my example and I've had, Imean, school of hard knocks I
learned as a young merchantgrowing up it wasn't enough just
to say look at this wonderfulitem that I found and I've
curated this great assortment.
Well, I quickly found out if myoperations partners couldn't
(20:36):
execute it at store level and itcouldn't be intuitive to 4,000
different store associates thatworked in that area, it was
probably going to fail.
If not fail, it was going to besuboptimized.
So I love taking ideas withclients and you remember in
(20:58):
Walmart if you took that ideaand carried it through, it would
energize the entireorganization.
It was the lifeblood of oursales growth, and so how you
take those ideas and give themthe care and concern they need
is the difference betweensuccess and failure.
Speaker 1 (21:17):
Right, you know, I remember Deanna, it reminds me
of you.
At the time I was running aregion of 100 plus stores in the
West and we had what we calledFriday Merchandise Meeting and
that's where Deanna and many ofthe merchants would come in the
West and we had what we calledFriday merchandise meeting and
that's where Deanna and many ofthe merchants would come in and
(21:38):
they would present items to theoperating group and talk about
the item.
And I know that on Monday whenI hit the stores I would begin
looking for that item and Iwould talk about that item to
the store associates and I wouldtalk about that item to the
store associates.
And so what merchandising wasdoing was teaching operations
how to be a merchant, how youknow the product, and they would
(22:00):
pass the product around or haveit there in a rack.
We could see it, touch it.
But you all were developingoperations.
In operations you develop withmerchants and we all fell in
love with merchandising.
And if you're in a retailcompany today, you need to fall
in love with merchandising.
The item, understand it, seehow it's displayed, let the
(22:24):
experts teach you how thatshould be displayed in the store
and the quality of the product,all of that that should be
displayed in the store, and thequality of the product, all of
that.
And we would walk the stores asoperators and we would go to
that item that you showed us ona Friday, on a Monday and we'd
talk about it.
Speaker 2 (22:42):
It was so exciting, but that feedback loop with
operations was the main reasonwhy we then transformed our
working model within apparel.
Um, it was around 2017 andsales were fantastic.
Sales had grown so much, but inthe quest to keep growing sales
(23:02):
, we as a merchant team hadgrown too many skews.
We were fitting within oursales budget, yeah, but we had
too many different things forthem to be displayed
appropriately.
And so I would walk stores withoperators and I would be like
why doesn't this look like theguide that we sent?
And they're like well, deanna,we need a home for each item.
(23:24):
It's complicated.
Y'all are making it toocomplicated for us and no one
gets what you're trying to do.
Making it too complicated forus and no one gets what you're
trying to do.
Well, ultimately, that led to ussunsetting 12 different private
brands throughout apparel.
We launched four new privatebrands, so from 12 to four
really cleaned up the floor.
(23:44):
You might even say a little too, am I lacking, because you know
I love items, but we cleaned upthe floor and that led us then
to being able to modularize morekey items.
So the items that reallymattered for the foundation had
a home and they stayed in stock,and then that led us to RFID.
(24:05):
So you can just I can see athread throughout and again, you
know where you're goingstrategically.
You may not know exactly howyou're going to get there, but
when I review back on thehistory, that's the thread I see
.
Speaker 1 (24:21):
Well, since we're there, talk about more about
RFID, because I think that's soimportant, especially in the
apparel area that you're talkingabout.
So share some more there.
Speaker 2 (24:30):
That's really good apparel area that you're talking
about.
So share some more there.
That's really good.
Well, rfid I had zero knowledgeabout, when I was like what is
that and why are some retailcompetitors adopting it?
The first early adopter that Iwas aware of was Lululemon, and
then I started seeing someothers.
Target had it, not oneverything, but I'm like, okay,
(24:53):
there must be some goodness herethat I need to learn about.
It turns out that our companyhad tested it years earlier, but
it didn't really go anywhere.
It was very expensive, it wasclunky, there was lots of
friction, but technology hadprogressed, and so I was
fortunate enough to be given thego-ahead to study it with a
(25:14):
cross-functional group of peers,and we got the plane, went to
Auburn University.
They have a lab, rfid lab.
They educated us and we're like, wow, could this be the unlock
so that we can be included inWalmart pickup and delivery?
At the time it was justcurbside, curbside delivery.
(25:35):
Would store associates feelconfident enough, knowing where
product is on the floor, toinclude the apparel team?
And so we went through it, andthe more I delved into it, the
more I'm starting to sweat it.
I'm like, well, this is gettingbigger than I even anticipated
to it, the more I'm likestarting to sweat it, like well,
this is getting bigger than Ieven anticipated.
It wasn't enough to haveeverything tagged RFID, which
was already in negotiation withsuppliers.
(25:57):
You know it took a full year torun through the inventory and
have everything tagged.
We needed to create an internalprocess for store associates to
be able to scan and take themeasurements needed and to set
and fulfill racks as they sold.
So there was a whole systemthat needed to be created and
(26:20):
tech-enabled to connect theWalmart systems to RFID.
The day we turned it on we werekind of forewarned of this from
the Auburn University team.
They said on average, when thisgoes live, a retailer will see
a 50% drop in inventory dollarsor units, whichever measurement
(26:43):
you're using.
And we're like, oh what 50?
I know ours is off, but the dayit went live, inventory dropped
30 percent.
Wow, which meant it was on paper, said it was there, but
technically it wasn't.
It was ghost inventory.
Yeah, it could be everythingfrom um.
It came in the back door with,let's say, something was
(27:04):
supposed to be a pack of 12 andit was a pack of 10.
You're already two off beforeit ever hit the floor.
Various reasons it could bemisplaced, and then an account
it's like it doesn't exist.
So all of that has now led tosuccessfully knowing real time
how much inventory down to asize small, blue, three quarters
(27:27):
that pull over, like you'rewearing that we have on a rack
and you can trust it.
Rack, and you can trust it.
Speaker 1 (27:32):
Yeah.
Speaker 2 (27:32):
So operations can trust it and they can actually
show the customer now on theirphone.
It's on rack A1.
And we have it ready for you tocome pick up or we can deliver
it to you.
Yeah, and that's over on top ofthe goodness that they could
always get it from a fulfillmentcenter if they wanted.
But if you want it now, we'vegot you covered and from what I
(27:55):
understand, it's been sosuccessful that it's rolling out
to general merchants.
Speaker 1 (27:59):
Right, right, yeah, and I've heard that and I've had
some experts in before talkingabout it and that's exactly
where it's going and they'relooking forward to getting it
done because the success has hadan apparel Wonderful.
Okay, let's talk a bit aboutyou for a moment, because I
(28:23):
really want our guests tounderstand what you've done and
just tell them how much P&Lmanagement that you've had.
And let's talk about that.
Speaker 2 (28:34):
Well, you know, it's Fortune 1, so it's big and more
than it being like, you know,roughly $25 billion was at the
largest.
That almost seems paralyzing topeople when they hear the
number.
I think for all of us whoworked in a large organization,
(28:56):
you quickly realize that if youdon't think a store at a time,
you've kind of missed the mark.
And it's that store at a timethought process that then you
know you roll up and, yes,they're very big decisions that
you're making.
But thinking small is where itbegins.
But, yes, an awesomeresponsibility, an awesome
(29:19):
responsibility of a large teamof people that you're charged to
develop and lead in the rightdirection.
So I did and I'm very proud ofit.
So I did and I'm very proud ofit.
Speaker 1 (29:59):
But it's not about the number as much as the
accomplishments and the peoplethat are there now, the people
that came after me and to talkedabout the multiple launches,
from private label to nationalbrands, that you have helped
launch and that's generatedbillions of dollars.
Speaker 2 (30:07):
launching that, and that's no small task.
No, there's a lot ofcoordination that happens in
that.
You know I mentioned the fourprivate brands that we launched
in 2017.
And you know, it was not justthat, it was.
How do you manage the markdownsand the transition from the 12
you had to the four you'rebringing in and not miss a beat
on your P&L?
Speaker 1 (30:27):
Because you know what , no one cares.
They want you to make yournumbers right, we all want to
make your numbers, we all wantto make our numbers in 2021.
Speaker 2 (30:37):
I was fortunate to be able to shepherd in Reebok and
that was across the box Justice,which is found in the girls
department, us Polo Associationand there were others.
But that was part of thatstrategy that we developed
together for Omnichannel,bringing in more national brands
, and so that was so excitingand that entailed working with
(31:05):
the partners who had the brandsand making sure that the timing
was right, the marketing wasright and it's a 360 marketing
program at this point.
That's what Omnichannel isright.
It's no longer just a sign on arack Right, and it's literally
showing up at the same time onthe website as the stores in
social media and really bringingit to the full market.
(31:29):
So really proud about that, andthat continues on.
Today.
I see what the team is doing inthe store, and so you know I
love that.
Other creative things that Igot to be a part of.
I was called the architect ofStore of the Future, which you
know it wasn't just me, let'sjust be clear.
(31:50):
It was a lot of people buthelping shepherd in the store of
the future for the apparelfloor.
With that new strategy, wewanted to invite more customers
in than the loyal customer,which we absolutely love and
want to continue serving.
But we wanted to appeal to morecustomers, and so that meant
(32:12):
bringing in the national brandsand having those brands show up
well, in a different light thanwe had done before.
It was about opening up spacefor the customers.
That meant removing racks fromthe floor Remember, we still
want to make our P&L, but I'mgoing to take some racks off the
floor, which is a little bit ofa nail biter.
We wanted to entice theomni-channel approach through
(32:37):
digital displays, throughmerchandising on mannequins, to
show different solutions for thecustomer, you know, to be able
to tell them there's even moreassortment on Walmartcom than
you see here today.
And so crafting that but stillmaking sure it worked for my
operations partners, we couldstill stay in stock, you know.
(32:59):
We could still manage the floorfrom the back room to the floor
Was really the art and thescience coming together, and to
me, I'm very proud of the teamand what we're able to create.
It's rolling out to everyremodel and so me, yes, it will
continue to change.
You know it won't be greatforever.
(33:22):
There'll be tweaks.
You know they're going torespond to what the customer is
telling them and they'll keep itrelevant to the customer.
But to me that was anothertransformative thing that needed
to happen and it was part ofthat overarching strategy.
Speaker 1 (33:33):
Wonderful.
Okay, I know you love thisbecause I'm having such a great
time sitting here listening andlearning.
What I'm going to do is talkabout a bit where you're going
to go with this doing businessin Bentonville.
I know you have to for ourviewers, listeners, share some
(33:54):
of your thoughts about thefuture podcast and if you can
talk about guests, uh, whatyou're doing and, as I mentioned
at the top of the show, uh, youknow Deanna's, uh, she's agreed
to be doing business inBentonville contributors, so she
again, as I mentioned, she'llhave her, uh, she'll have her
own show, she'll have her guestsand, um, uh, you know I would.
(34:17):
You can share about that.
But I just want to say thisAfter this I just want to go to
a Walmart store now and I wantto tour a pair with you.
I mean, that's exactly where Iwant to go, so maybe we could do
that on a podcast someday.
Speaker 2 (34:29):
Absolutely.
You know, I think that would befun, that would be so much fun.
Speaker 1 (34:33):
I'd love to have you teach us all as you.
We can do this, so let's workon that.
I want to put that out therebefore I forget it.
Speaker 2 (34:39):
Well, let's not just do Walmart, let's do other
competitors too.
Speaker 1 (34:42):
Oh, yes, absolutely, Because you found great ideas
you know, in so many differentplaces.
Speaker 2 (34:46):
Oh you're right, absolutely.
Speaker 1 (34:47):
And, as you know, when we went out on Walmart
store visits, we always had togo to the competitors and we
came back and talked about it,because if you, well, we just
won't go there, if you didn't.
Anyway, talk about what you'rethinking about the future.
Speaker 2 (35:02):
Well, I am so excited to be able to discuss the
conversations that I've beenhaving in my community, business
colleagues and my friends Ofcourse you know funny, if you
spend 30 years in the industry,a lot of your friends are from
the industry as well andrelevant topics that don't
always make it to the frontlines.
(35:24):
I'm very excited to be able todelve into some of those and I'm
thrilled to say my first guestis a gentleman that I've known,
I feel like forever, forever,but Terry Truffles, who just
(35:46):
retired recently from Interdecostellar, a stellar career in the
supplier community and a good,great partner actually not good,
great partner to Walmartthrough all the decades.
He and I are going to discussthe current business environment
that we're in and, yes, thatcould take an entire episode
just that, but we really want tocut through almost in light of
the situations that we're allfacing.
(36:07):
How do you still strive for awin-win partnership a supplier
and a retailer and how truly, ifyou can focus on that through
the noise how it can be acompetitive advantage to both
and really digging in for adeeper understanding from the
(36:28):
opposite side of the disc andtruly how it can be a
competitive advantage.
And he and I have some examplesthat I've worked directly with
him on, that I've workeddirectly with him on, and I
think that it will serve manypeople well, because there is so
much to distract right now andI truly think the person or the
(36:51):
retailer, the supplier that cancut through and focus ultimately
on that win-win relationshipfor the customer, they'll be the
ones that win Right.
Speaker 1 (37:01):
And that podcast will be available in April.
Focus ultimately on thatwin-win relationship for the
customer.
They'll be the ones that winRight?
And that podcast will beavailable in April.
It's just less than a monthfrom now.
So perfect, that soundswonderful.
And you'll be hearing a lotmore Adina.
You're on LinkedIn.
That's a good way for people toto introduce themselves to you.
(37:27):
Also, on our website, doingbusiness in Bentonville, you'll
see a bio of Deanna.
You'll see her email, hercompany logo and also you can
reach out to her, and so allthat will be available.
So I will tell you, I'm soexcited that you're going to be
part of doing business inBentonville.
It's wonderful and yourknowledge, your expertise, your
(37:52):
you know all that you have.
All you have done is justpreparing you for what you're
going to do in the future andthat's going to be exciting to
watch and we're excited doingbusiness in Bentonville.
You share some of that with us.
Now, as we close up anything youwant to leave our viewers with.
Speaker 2 (38:15):
Well, I was thinking about you know what could I
share earlier, and in light ofthe conversation I'm going to
have with Terry about supplierrelationships and building trust
for win-win outcomes, I thoughtI'd share a story of my own
when I was a new buyer.
So we're talking like I reallywant to timestamp it.
(38:40):
It was about 1995.
And I was a new sock andactivewear buyer for women's and
I'd been an associate buyer inmen's prior to that.
But I had scheduled a meetingwith this particular gentleman,
one of the sock suppliers, andhe came in and introduced
himself.
(39:00):
His name is Vic Stober and hebrought in some packaged socks
that he had purchased from mynew category in Walmart, so the
current assortment right.
And he said, if you'll allow me,I would like to show you
something.
And so he, you know, firstopened all the bags of socks and
(39:20):
laid them out and he goes Iwould like to teach you the
difference between a cheaplymade sock and a fully fashioned,
well-made sock.
And he went through it and hewas like this one is a very
generic tube sock.
This is how long it takes tomake it, here's how you make it,
and it relatively costs thisamount.
And then he showed me the othersock and why it was better,
(39:45):
right, and all the components ofit.
And he he proceeded to tell meall these differences and he
even said now here are thequestions you need to be asking
all the suppliers.
He said I just want a levelplaying field when you and I
visit so that you know what's inthat bag and what you're
purchasing.
Speaker 1 (40:03):
It is.
Speaker 2 (40:04):
And he goes I'll even give you one better.
Many will come in here andthey'll say that this certain
weight of a sock is what thecustomer prefers.
You should always buy thisweight sock, he goes.
In reality, deanna, that sockis made off a particular machine
.
That machine can only make thatsock, he goes.
(40:29):
Odds are, those are themachines that they have and they
want you to make socks fromthat machine.
And so he said it's notnecessarily what the customer
wants and you need to be awareof that.
And so that started a businessrelationship that the years that
progressed after.
Every time I got promoted into anew category or new level, he
would wish me well, and we evenstay in touch via his son, rich,
(40:50):
today.
Just how's the family, how'severyone doing For me?
It?
Just when I think back on thatexample.
If I have any advice for anyone, it's humble, and use your
spotty sense.
Use your intuition for thepeople that you can trust, and
(41:10):
just remember that while you'vebeen in a category for a short
amount of time, in most casesthey've devoted their whole
career to that category and theyhave so much knowledge to teach
you and it behooves them foryou to be successful Right.
So use your intuition andlisten and take a chance on
(41:32):
trusting someone, and you know,you'll find out.
If you can't Right, you've gotto verify.
Speaker 1 (41:43):
But to me those are the relationships that change
the trajectory of my career.
Wow, that's powerful.
Stay humble, be open.
You know that and that'spowerful, and you know we.
We have a leader that taught usthat too.
St Walton taught us that.
About humility you knowhumility, like Sam.
(42:12):
You know we all had theopportunity to listen and work
and travel with Sam and do allthose wonderful things.
But what I learned of what youjust said from Sam was that
humility is not a weakness, it'sa quiet strength, and that's
exactly what Sam taught us andTossie taught us that.
You did that example and that'spowerful, deanna, it really is.
(42:32):
You can see why she's here.
So, deanna, thank you, thankyou, thank you.
We're looking forward for manythings with you, sharing with
our guests I mean from ourviewers and so what a great
morning and what a great start.
Speaker 2 (42:51):
Absolutely.
I'm so excited, let's go.
Speaker 1 (42:54):
All right.
So we're going to.
You'll be seeing her andlistening or seeing her video
she talked about in April withher guests, so be looking for
that and, of course, we'll becommunicating that to all of you
.
Again, thank you to all of ourviewers, all of our listeners.
Thank you so much for whatyou're doing.
We are very humbled that youhave chose to make doing
(43:18):
business in Bentonville part ofyour life.
So thank you, deanna, it'sgoing to be so.
Speaker 2 (43:22):
Thank you, deanna, it's going to be great.
Thank you, andy, okay.
Speaker 1 (43:24):
Thank you, wonderful job.
Goodbye everyone, have awonderful day.
Hello everyone and welcome to Doing Business in
Bentonville.
My name is Andy Wilson, I'myour host today and thank you so
much for joining us.
Before we get started in ourpodcast this morning, I want to
tell you how much we appreciateyour feedback and your viewing
and sharing and all the greatthings you're doing.
Because of you, we continue togrow.
(00:27):
We're now viewed in over 90countries.
We have up to 2,000 plus viewsa day.
So thank you so much.
We couldn't do this without youand it means so much to us here
at Doing Business inBentonville that you're
supporting us, so thank you forthat.
My guest today is Deanna Baker.
Deanna, welcome, thank you somuch.
Okay, listen, this is a big.
(00:47):
I'm just saying I have beenlike trying to get Deanna Baker
for a year.
She finally is back and we'regoing to make some announcements
about her.
I mean, she's back like bigtime at doing business in
Bentonville.
I can't be happier.
Speaker 2 (00:59):
I'm telling you Well, thank you.
I love your cheerleader numberone, Thank you.
Speaker 1 (01:03):
Oh, I'm telling you I'm so happy.
Well, thank you, I love yourcheerleader number one, thank
you.
Oh, I'm definitely a bigcheerleader, no question about
it.
Today, what we're going to dois this Deanna and I are going
to talk about her past atWalmart stores and what she's
going to be doing in the future.
But the thing that we're goingto announce today that Deanna
Baker will become a DoingBusiness in Bentonville
(01:24):
contributor.
Now, what is that, andy?
What is a contributor?
Well, you're going to get tosee more of her in the future.
She's going to be here hostingher own program for DBB and with
her guests, and she's got somewonderful guests that she's
working with and she's going tobe focused around, of course,
omni-channel and retail, andthere's so many stories that she
(01:47):
can talk about her career.
So what we're going to do isdive a bit into her career so
you can get to know her andappreciate her, and then we're
going to get into some thingswe're going to talk about around
retail and Omnichannel.
So, deanna, again, I can't bemore happy that you're going to
(02:08):
be part of doing business inBentonville.
Speaker 2 (02:10):
Oh, thank you, Andy.
Thanks to you and to the teamat doing business in Bentonville
, it's quite an opportunity forme, and you know, reflecting
back but then how it applies totoday's business environment and
where to go forward.
To me is just that continuallove of retail, and so I am
fortunate to get to still sharethat.
Speaker 1 (02:30):
You do so.
Speaker 2 (02:31):
I'm really happy with the opportunity, Good Well.
Speaker 1 (02:34):
I would say that we grew up at Walmart together.
Deanna.
If I said that, you would thinkshe started when she was a baby
.
So we just spent we worked atWalmart together for a long time
and had such respect.
But, Deanna, what I'd love todo is just share with our
viewers about your time atWalmart, what you've done, and
(02:58):
then a bit of what you're goingto do in the future, and then
we'll get into some of the moredetails about your expertise and
the impact that you have had onretail and on each channel and
what the impact you'll have inthe future.
So share a bit about yourself.
Speaker 2 (03:16):
Well, as you said, majority of my career was with
Walmart 32 years to be exact,and I hang on to those two years
because so much happened in thelast two years that were
beneficial and such an educationI can go into that.
But merchandising the entiretime, primarily in apparel, but
(03:37):
also about three years inoutdoor living, so you know the
ends of the box, I guess, andlearned so much I've referred to
(03:59):
it as an incredible educationthat I was able to achieve and
of the retailer you work for,the supplier that you work for,
it begins with an appreciationfor who you serve and then you
make all the right decisions forthat customer.
So, 32 years at Walmart.
The last role was senior vicepresident, omni-channel
(04:23):
merchandising.
I specifically had bothchannels for men's, kids', baby'
and footwear, and in 2020, Iretired in 22, we merged the two
channels together brick andmortar and e-commerce.
So not only did I have to lead ateam, I had to learn quickly
(04:45):
for myself what it meant to leadboth channels and how to make
both successful and actuallysynergistically better together
than they were apart.
And so that was a quick, quicklearning for myself and the team
.
But then there were so manyother transformational things
that were already underway,specifically at store level,
(05:06):
which we can get into later, butjust in how we managed the
assortment at store level andhow we brought that to a place,
we could leverage the technologythat the whole company was
utilizing.
I desperately wanted my apparelteam to be part of that
solution, in goodness and I'mreferring to curbside pickup and
(05:29):
delivery and my team being apart of that and so there was a
huge transformation going on inthe midst of putting together a
team, an omni-channel team, andbeing a student of an entirely
new way to me at the time ofdoing business through
e-commerce.
Right, and you know, my peershad the flip experience where
(05:52):
they were raised in ane-commerce environment and
needed to learn a 4,500 storechain business and how do you
manage that?
So rich learnings in those lasttwo years for me.
Speaker 1 (06:04):
Wow.
You know, so many of ourviewers are in that transition
and that's why I think you'regoing to be so helpful, because
you're going to be able to helpteach and help our viewers
navigate the transition that youhave been part of.
And that's one of the reasonswe're so excited that you're
(06:24):
going to be part of doingbusiness in Bentonville and from
going from brick and mortar toe-commerce.
It's huge, and a thing thatDeanna will be doing is really
helping you navigate that space,because you've done it
successfully.
And now some of the things thatyou have done I think would be
(06:48):
good from a standpoint of reallypeople understanding your
credibility and your backgroundis let's talk about some of
those key areas that you didnavigate and let's just start
with the strategic growth andmarket insights.
Talk about that one.
There's all of these thingsabout navigating that space.
Really, I mean not only yourcareer, but I will tell you I
(07:13):
talk to people almost daily that, okay, andy, how do you
navigate Omnichannel?
How do you make sense of thiswhole crazy thing?
Because you know, andespecially, people that are
brick and mortar and want to getinto e-commerce.
So, anyway, that's going to bereally great.
So let's talk about strategicgrowth and market insights.
Speaker 2 (07:36):
Well, if I go back to my experience in this space,
like I said, you knowtransformations Well.
When you take in 30 plus years,you're going to have a few
transformations right, and I wasprivileged to have a seat at
the table through those asWalmart matured and progressed
in retail.
(07:56):
But if I go back to the examplein 2020, I was fortunate enough
with the leadership team of theapparel group cross-functional,
by the way to put together afive-year strategic plan and it
encompassed what I knew well andwhat I was like I said, rapidly
learning into Omnichannel, andnot one of us it didn't matter
(08:21):
where you came from and whatyour discipline had been in the
past had all the answers andtrying to understand how they
can work togethersynergistically to, to you know,
create a five-year plan was waschallenging.
You know, we started with fromthe facts of what we knew and
what we knew ourselves to be,but then where did we want to go
(08:43):
and, most importantly, at whatspeed?
And we didn't have all theanswers.
So to me, that was a crashcourse in understanding what a
true strategy is, in that youknow where you want to go in the
future, don't exactly know thepath to get there.
Speaker 1 (09:00):
Right.
Speaker 2 (09:00):
And so we all had to work together and revisit it a
lot to make sure we were stillon the path that we wanted at
the speed we wanted, and thatentailed everything from.
You know, I was doing it fromthe SVP level and up for total
apparel.
I was concerned with how thatdovetailed into where the
(09:21):
company was putting resourcesand what the company cared about
.
Right To be an offshootwouldn't have helped anyone,
right, and I wanted to be partof those resources that were
being created and being deployedfor the benefit of the customer
.
But it wasn't just totalapparel.
I then had to work with mydirect team of vice presidents
(09:44):
and what did their part of thepuzzle look like for their
business?
I mentioned like one of myteams was kids and boys and
girls at a VP of that.
What did he need for his teamto be successful in the kids
industry and grow market sharein the kids space, market share
(10:06):
in the kids space, and how couldwe work that into the
overarching strategy to where itwasn't just total apparel
winning, but they got to win asa team as well in the kids
business.
So all of that being puttogether was an incredible
education for me today the way Iapply that in consulting is,
whenever I work I'll use theexample of a supplier.
I have to think about it fromtheir vantage point of who are
(10:30):
their retail partners and who dothey serve the ultimate
customer?
How has that worked in the pastfor them?
Do they need to switch gears?
Do they need to resource forthe future?
Are they structuredappropriately to do that future
business?
And really guiding them tothink further than making that
(10:52):
year's budget to what do youneed to be thinking about now
that you won't even benefit fromuntil two years from now?
Because it's two years is likethat in retail, we know, but so
much of the time we get mired inthe most critical of the moment
stuff.
Speaker 1 (11:10):
You know, one of the things that Deanna will be
sharing on future podcasts isreally how to do this, how she
navigated that.
Plus, as she mentioned, she hasher own company, dino Baker
Consulting, and so she'll be uh,we'll be sharing all that
information with you so you canreach out, how to contact her
and and and and work with herthrough navigating all of this.
(11:34):
Um, so that's going to beexciting.
And then, uh, uh.
Now you know, one of the thingsyou talked about in your
expertise and impact was thiswhole retail and business
intelligence.
Talk about that, because I knowso many of our viewers are
(11:54):
dealing with that today reallyhow to equip leaders and teams
and today, this fast rocket shipwe're riding on each other.
Speaker 2 (12:07):
Share that.
I think it's imperative that weall stay current and that's
reading a lot of articlesstaying close to different
retailers, different suppliers,both e-commerce, brick and
mortar, the way they areapplying the two together,
because you'll see differentapproaches and being a fast
(12:30):
student of what's going on.
As we know, there's so manyvariables at play right now and
how people navigate.
That will be interesting to seethe take on it from different
companies.
But you know again on it fromdifferent companies.
But you know again, applyingwhat I know to how it can help
in the future In retail.
(12:51):
We all are aware that no twodays are alike.
Right.
The variables keep changing.
That's what keeps itinteresting but also can be
frustrating.
But applying great experiencesand the outcomes to the trends
and what I see happening infront of us today, I think can
help predict outcomes.
So you know, if I can teach andtrain through different
(13:15):
scenarios that companies haveissues that they're facing with
my past experiences for a greatfit that will lead them into the
future with today's environment, then I feel like we can create
some real winning outcomestogether.
Speaker 1 (13:32):
Right, you talked about a few minutes ago about
the transition that you wentthrough from brick and mortar to
omnichannel online toOmnichannel online and I know
one of the things that you focuson in your company is this
business model adaptability,Because your business model
(13:54):
changes and I know we have a lotof viewers today like, yes, my
business model is changing.
How do you approach that?
What's your thoughts on that?
Speaker 2 (14:03):
Well, I think you have to be uh, you have to have
a future vision of, let's say, acouple years from now.
I'm going to be need to be goodat this.
Or even further out, five years, even better.
Um, I'm not there today, my, mycompany is not there today, but
I see the future and the wayit's trending.
(14:24):
I'm going to need to be good atthat.
And so I think you have tostart laying plans out now that
make that a slow and steadyprogression towards that, not
hanging on until the bitter endwith an old business model,
because to me, that leads topain.
It's hard for people to change,and the longer you
(14:45):
procrastinate, the harder thatchange is going to be and it's
going to be under duress.
So, if you can start theprocess now and again, there is
no perfect blueprint or peoplewould have already done it right
.
So you have to stay nimble, youhave to be curious and you have
to change before You're forcedto.
Speaker 1 (15:07):
Yeah.
Speaker 2 (15:08):
And so to me, that's really what the business model,
adaptability, is Right.
And let's just say you get intoyear three of the five-year
example, and what if the goalhas changed?
Yeah Well, are you better forhave at least progressed in that
direction?
I would argue every time,absolutely, absolutely.
Speaker 1 (15:29):
Right, well, I mean your five-year business plan.
It's like you mentioned earlier.
It's continually changing andyou know, at Walmart we were
taught by Mr Sam.
The most consistent thing atWalmart was change and we have a
, you know, and today, evenbecause of that philosophy it
was ingrained in us, because wetalked about it every week,
(15:51):
because we changed it every weekthat's how we run our lives
almost now.
Yeah, you mentioned nimble andI love that word.
Curious, because you should becurious.
Is there any companies thatcome to mind that are doing it
really well and some that stillgot a ways to go that just come
(16:15):
to mind?
Speaker 2 (16:16):
Well, goodness, I mean, we know who's winning in
the retail space, right?
And I think what I admire abouteach of those companies is they
are true to who they are andthe customer they serve, and
they do that very well, and itdoesn't mean that you always
stay the same Again.
If you keep the customer thatyou serve at the center of all
(16:39):
of your decisions and that'swhat we were taught as well
right, you're innovating forthem, you're staying close to
what they're telling you throughwhat they purchase feedback,
close to what they're tellingyou through what they purchase
feedback, and you're drivingyour future state of where you
know that your customer wants togo.
I would say, though, as amerchant and I use the term
(17:02):
merchant broadly I don't care ifyou're in supply chain or if
you're in operations or you're abuyer.
That's your day job.
You have to get comfortableliving in the gray.
You have to be comfortable inmaking decisions without knowing
all the answers, and I thinkthat's okay, because I think
(17:24):
progressing forward requiresthat If you make a misstep, you
can quickly correct, and then,as a leader, the real trick to
me is how do you lead people ina gray area?
Right, and so what?
That comes back to the valuesof your company, what your
company stands for, again, whoyou serve, and and just being
(17:47):
really transparent with yourteam on.
Here's what we're thinkingtoday, here's why we're doing it
and leading your team throughthat so they can manage that
state, because you know somepeople are comfortable with
making decisions without having100% of the answers and I think
that's a skill in itself to beable to navigate in that area.
Speaker 1 (18:11):
I think you just gave us all a great lesson in
leadership, because you're rightabout navigating the gray, and
when you said that, what comesto my mind it's like, you know,
driving in the fog and we hadsome fog driving in today here
and you know, if you brightenyour lights, it's more difficult
(18:32):
to see in the fog, and so youhave to navigate through it, and
that's navigating it great, andI think all the points you
talked about just now is a greatleadership lesson to all of us
on how we navigate and lead inthis ever-changing world of
Omnichannel.
You know, and so, so, perfect,this is great.
(18:57):
Oh, um, I told you this isgoing to be good, right, and so
anyway, let's let's talk about acouple of things.
Then I want to get to some ofthe leadership and some of the
achievements.
So, so people could really, sopeople really really understand
all that you've done.
But you know, one of the thingsthat your company is going to
do is help people go to market.
(19:17):
Going to market is differentnow, isn't it?
Speaker 2 (19:24):
Talk about some of that.
What are your thoughts aroundthat?
Well, to me, my first lovewithin the job is the creation
of products and services for thecustomer and bringing those
ideas to bear.
Um, and so many good ideas fail, not because they were a good
idea, a great idea, but theyjust weren't separated through
(19:45):
the entire process and um.
So when I think of you know, ago-to-market strategy, it's
literally shepherding aconceptual thought into physical
product or brand.
It could be a solution for thecustomer.
It doesn't have to be a thing,a widget that, through to final
(20:13):
purchase, whether it's one-commerce or a brick and mortar
experience, is part of thego-to-market strategy for your
item.
In my example and I've had, Imean, school of hard knocks I
learned as a young merchantgrowing up it wasn't enough just
to say look at this wonderfulitem that I found and I've
curated this great assortment.
Well, I quickly found out if myoperations partners couldn't
(20:36):
execute it at store level and itcouldn't be intuitive to 4,000
different store associates thatworked in that area, it was
probably going to fail.
If not fail, it was going to besuboptimized.
So I love taking ideas withclients and you remember in
(20:58):
Walmart if you took that ideaand carried it through, it would
energize the entireorganization.
It was the lifeblood of oursales growth, and so how you
take those ideas and give themthe care and concern they need
is the difference betweensuccess and failure.
Speaker 1 (21:17):
Right, you know, I remember Deanna, it reminds me
of you.
At the time I was running aregion of 100 plus stores in the
West and we had what we calledFriday Merchandise Meeting and
that's where Deanna and many ofthe merchants would come in the
West and we had what we calledFriday merchandise meeting and
that's where Deanna and many ofthe merchants would come in and
(21:38):
they would present items to theoperating group and talk about
the item.
And I know that on Monday whenI hit the stores I would begin
looking for that item and Iwould talk about that item to
the store associates and I wouldtalk about that item to the
store associates.
And so what merchandising wasdoing was teaching operations
how to be a merchant, how youknow the product, and they would
(22:00):
pass the product around or haveit there in a rack.
We could see it, touch it.
But you all were developingoperations.
In operations you develop withmerchants and we all fell in
love with merchandising.
And if you're in a retailcompany today, you need to fall
in love with merchandising.
The item, understand it, seehow it's displayed, let the
(22:24):
experts teach you how thatshould be displayed in the store
and the quality of the product,all of that that should be
displayed in the store, and thequality of the product, all of
that.
And we would walk the stores asoperators and we would go to
that item that you showed us ona Friday, on a Monday and we'd
talk about it.
Speaker 2 (22:42):
It was so exciting, but that feedback loop with
operations was the main reasonwhy we then transformed our
working model within apparel.
Um, it was around 2017 andsales were fantastic.
Sales had grown so much, but inthe quest to keep growing sales
(23:02):
, we as a merchant team hadgrown too many skews.
We were fitting within oursales budget, yeah, but we had
too many different things forthem to be displayed
appropriately.
And so I would walk stores withoperators and I would be like
why doesn't this look like theguide that we sent?
And they're like well, deanna,we need a home for each item.
(23:24):
It's complicated.
Y'all are making it toocomplicated for us and no one
gets what you're trying to do.
Making it too complicated forus and no one gets what you're
trying to do.
Well, ultimately, that led to ussunsetting 12 different private
brands throughout apparel.
We launched four new privatebrands, so from 12 to four
really cleaned up the floor.
(23:44):
You might even say a little too, am I lacking, because you know
I love items, but we cleaned upthe floor and that led us then
to being able to modularize morekey items.
So the items that reallymattered for the foundation had
a home and they stayed in stock,and then that led us to RFID.
(24:05):
So you can just I can see athread throughout and again, you
know where you're goingstrategically.
You may not know exactly howyou're going to get there, but
when I review back on thehistory, that's the thread I see
.
Speaker 1 (24:21):
Well, since we're there, talk about more about
RFID, because I think that's soimportant, especially in the
apparel area that you're talkingabout.
So share some more there.
Speaker 2 (24:30):
That's really good apparel area that you're talking
about.
So share some more there.
That's really good.
Well, rfid I had zero knowledgeabout, when I was like what is
that and why are some retailcompetitors adopting it?
The first early adopter that Iwas aware of was Lululemon, and
then I started seeing someothers.
Target had it, not oneverything, but I'm like, okay,
(24:53):
there must be some goodness herethat I need to learn about.
It turns out that our companyhad tested it years earlier, but
it didn't really go anywhere.
It was very expensive, it wasclunky, there was lots of
friction, but technology hadprogressed, and so I was
fortunate enough to be given thego-ahead to study it with a
(25:14):
cross-functional group of peers,and we got the plane, went to
Auburn University.
They have a lab, rfid lab.
They educated us and we're like, wow, could this be the unlock
so that we can be included inWalmart pickup and delivery?
At the time it was justcurbside, curbside delivery.
(25:35):
Would store associates feelconfident enough, knowing where
product is on the floor, toinclude the apparel team?
And so we went through it, andthe more I delved into it, the
more I'm starting to sweat it.
I'm like, well, this is gettingbigger than I even anticipated
to it, the more I'm likestarting to sweat it, like well,
this is getting bigger than Ieven anticipated.
It wasn't enough to haveeverything tagged RFID, which
was already in negotiation withsuppliers.
(25:57):
You know it took a full year torun through the inventory and
have everything tagged.
We needed to create an internalprocess for store associates to
be able to scan and take themeasurements needed and to set
and fulfill racks as they sold.
So there was a whole systemthat needed to be created and
(26:20):
tech-enabled to connect theWalmart systems to RFID.
The day we turned it on we werekind of forewarned of this from
the Auburn University team.
They said on average, when thisgoes live, a retailer will see
a 50% drop in inventory dollarsor units, whichever measurement
(26:43):
you're using.
And we're like, oh what 50?
I know ours is off, but the dayit went live, inventory dropped
30 percent.
Wow, which meant it was on paper, said it was there, but
technically it wasn't.
It was ghost inventory.
Yeah, it could be everythingfrom um.
It came in the back door with,let's say, something was
(27:04):
supposed to be a pack of 12 andit was a pack of 10.
You're already two off beforeit ever hit the floor.
Various reasons it could bemisplaced, and then an account
it's like it doesn't exist.
So all of that has now led tosuccessfully knowing real time
how much inventory down to asize small, blue, three quarters
(27:27):
that pull over, like you'rewearing that we have on a rack
and you can trust it.
Rack, and you can trust it.
Speaker 1 (27:32):
Yeah.
Speaker 2 (27:32):
So operations can trust it and they can actually
show the customer now on theirphone.
It's on rack A1.
And we have it ready for you tocome pick up or we can deliver
it to you.
Yeah, and that's over on top ofthe goodness that they could
always get it from a fulfillmentcenter if they wanted.
But if you want it now, we'vegot you covered and from what I
(27:55):
understand, it's been sosuccessful that it's rolling out
to general merchants.
Speaker 1 (27:59):
Right, right, yeah, and I've heard that and I've had
some experts in before talkingabout it and that's exactly
where it's going and they'relooking forward to getting it
done because the success has hadan apparel Wonderful.
Okay, let's talk a bit aboutyou for a moment, because I
(28:23):
really want our guests tounderstand what you've done and
just tell them how much P&Lmanagement that you've had.
And let's talk about that.
Speaker 2 (28:34):
Well, you know, it's Fortune 1, so it's big and more
than it being like, you know,roughly $25 billion was at the
largest.
That almost seems paralyzing topeople when they hear the
number.
I think for all of us whoworked in a large organization,
(28:56):
you quickly realize that if youdon't think a store at a time,
you've kind of missed the mark.
And it's that store at a timethought process that then you
know you roll up and, yes,they're very big decisions that
you're making.
But thinking small is where itbegins.
But, yes, an awesomeresponsibility, an awesome
(29:19):
responsibility of a large teamof people that you're charged to
develop and lead in the rightdirection.
So I did and I'm very proud ofit.
So I did and I'm very proud ofit.
Speaker 1 (29:59):
But it's not about the number as much as the
accomplishments and the peoplethat are there now, the people
that came after me and to talkedabout the multiple launches,
from private label to nationalbrands, that you have helped
launch and that's generatedbillions of dollars.
Speaker 2 (30:07):
launching that, and that's no small task.
No, there's a lot ofcoordination that happens in
that.
You know I mentioned the fourprivate brands that we launched
in 2017.
And you know, it was not justthat, it was.
How do you manage the markdownsand the transition from the 12
you had to the four you'rebringing in and not miss a beat
on your P&L?
Speaker 1 (30:27):
Because you know what , no one cares.
They want you to make yournumbers right, we all want to
make your numbers, we all wantto make our numbers in 2021.
Speaker 2 (30:37):
I was fortunate to be able to shepherd in Reebok and
that was across the box Justice,which is found in the girls
department, us Polo Associationand there were others.
But that was part of thatstrategy that we developed
together for Omnichannel,bringing in more national brands
, and so that was so excitingand that entailed working with
(31:05):
the partners who had the brandsand making sure that the timing
was right, the marketing wasright and it's a 360 marketing
program at this point.
That's what Omnichannel isright.
It's no longer just a sign on arack Right, and it's literally
showing up at the same time onthe website as the stores in
social media and really bringingit to the full market.
(31:29):
So really proud about that, andthat continues on.
Today.
I see what the team is doing inthe store, and so you know I
love that.
Other creative things that Igot to be a part of.
I was called the architect ofStore of the Future, which you
know it wasn't just me, let'sjust be clear.
(31:50):
It was a lot of people buthelping shepherd in the store of
the future for the apparelfloor.
With that new strategy, wewanted to invite more customers
in than the loyal customer,which we absolutely love and
want to continue serving.
But we wanted to appeal to morecustomers, and so that meant
(32:12):
bringing in the national brandsand having those brands show up
well, in a different light thanwe had done before.
It was about opening up spacefor the customers.
That meant removing racks fromthe floor Remember, we still
want to make our P&L, but I'mgoing to take some racks off the
floor, which is a little bit ofa nail biter.
We wanted to entice theomni-channel approach through
(32:37):
digital displays, throughmerchandising on mannequins, to
show different solutions for thecustomer, you know, to be able
to tell them there's even moreassortment on Walmartcom than
you see here today.
And so crafting that but stillmaking sure it worked for my
operations partners, we couldstill stay in stock, you know.
(32:59):
We could still manage the floorfrom the back room to the floor
Was really the art and thescience coming together, and to
me, I'm very proud of the teamand what we're able to create.
It's rolling out to everyremodel and so me, yes, it will
continue to change.
You know it won't be greatforever.
(33:22):
There'll be tweaks.
You know they're going torespond to what the customer is
telling them and they'll keep itrelevant to the customer.
But to me that was anothertransformative thing that needed
to happen and it was part ofthat overarching strategy.
Speaker 1 (33:33):
Wonderful.
Okay, I know you love thisbecause I'm having such a great
time sitting here listening andlearning.
What I'm going to do is talkabout a bit where you're going
to go with this doing businessin Bentonville.
I know you have to for ourviewers, listeners, share some
(33:54):
of your thoughts about thefuture podcast and if you can
talk about guests, uh, whatyou're doing and, as I mentioned
at the top of the show, uh, youknow Deanna's, uh, she's agreed
to be doing business inBentonville contributors, so she
again, as I mentioned, she'llhave her, uh, she'll have her
own show, she'll have her guestsand, um, uh, you know I would.
(34:17):
You can share about that.
But I just want to say thisAfter this I just want to go to
a Walmart store now and I wantto tour a pair with you.
I mean, that's exactly where Iwant to go, so maybe we could do
that on a podcast someday.
Speaker 2 (34:29):
Absolutely.
You know, I think that would befun, that would be so much fun.
Speaker 1 (34:33):
I'd love to have you teach us all as you.
We can do this, so let's workon that.
I want to put that out therebefore I forget it.
Speaker 2 (34:39):
Well, let's not just do Walmart, let's do other
competitors too.
Speaker 1 (34:42):
Oh, yes, absolutely, Because you found great ideas
you know, in so many differentplaces.
Speaker 2 (34:46):
Oh you're right, absolutely.
Speaker 1 (34:47):
And, as you know, when we went out on Walmart
store visits, we always had togo to the competitors and we
came back and talked about it,because if you, well, we just
won't go there, if you didn't.
Anyway, talk about what you'rethinking about the future.
Speaker 2 (35:02):
Well, I am so excited to be able to discuss the
conversations that I've beenhaving in my community, business
colleagues and my friends Ofcourse you know funny, if you
spend 30 years in the industry,a lot of your friends are from
the industry as well andrelevant topics that don't
always make it to the frontlines.
(35:24):
I'm very excited to be able todelve into some of those and I'm
thrilled to say my first guestis a gentleman that I've known,
I feel like forever, forever,but Terry Truffles, who just
(35:46):
retired recently from Interdecostellar, a stellar career in the
supplier community and a good,great partner actually not good,
great partner to Walmartthrough all the decades.
He and I are going to discussthe current business environment
that we're in and, yes, thatcould take an entire episode
just that, but we really want tocut through almost in light of
the situations that we're allfacing.
(36:07):
How do you still strive for awin-win partnership a supplier
and a retailer and how truly, ifyou can focus on that through
the noise how it can be acompetitive advantage to both
and really digging in for adeeper understanding from the
(36:28):
opposite side of the disc andtruly how it can be a
competitive advantage.
And he and I have some examplesthat I've worked directly with
him on, that I've workeddirectly with him on, and I
think that it will serve manypeople well, because there is so
much to distract right now andI truly think the person or the
(36:51):
retailer, the supplier that cancut through and focus ultimately
on that win-win relationshipfor the customer, they'll be the
ones that win Right.
Speaker 1 (37:01):
And that podcast will be available in April.
Focus ultimately on thatwin-win relationship for the
customer.
They'll be the ones that winRight?
And that podcast will beavailable in April.
It's just less than a monthfrom now.
So perfect, that soundswonderful.
And you'll be hearing a lotmore Adina.
You're on LinkedIn.
That's a good way for people toto introduce themselves to you.
(37:27):
Also, on our website, doingbusiness in Bentonville, you'll
see a bio of Deanna.
You'll see her email, hercompany logo and also you can
reach out to her, and so allthat will be available.
So I will tell you, I'm soexcited that you're going to be
part of doing business inBentonville.
It's wonderful and yourknowledge, your expertise, your
(37:52):
you know all that you have.
All you have done is justpreparing you for what you're
going to do in the future andthat's going to be exciting to
watch and we're excited doingbusiness in Bentonville.
You share some of that with us.
Now, as we close up anything youwant to leave our viewers with.
Speaker 2 (38:15):
Well, I was thinking about you know what could I
share earlier, and in light ofthe conversation I'm going to
have with Terry about supplierrelationships and building trust
for win-win outcomes, I thoughtI'd share a story of my own
when I was a new buyer.
So we're talking like I reallywant to timestamp it.
(38:40):
It was about 1995.
And I was a new sock andactivewear buyer for women's and
I'd been an associate buyer inmen's prior to that.
But I had scheduled a meetingwith this particular gentleman,
one of the sock suppliers, andhe came in and introduced
himself.
(39:00):
His name is Vic Stober and hebrought in some packaged socks
that he had purchased from mynew category in Walmart, so the
current assortment right.
And he said, if you'll allow me,I would like to show you
something.
And so he, you know, firstopened all the bags of socks and
(39:20):
laid them out and he goes Iwould like to teach you the
difference between a cheaplymade sock and a fully fashioned,
well-made sock.
And he went through it and hewas like this one is a very
generic tube sock.
This is how long it takes tomake it, here's how you make it,
and it relatively costs thisamount.
And then he showed me the othersock and why it was better,
(39:45):
right, and all the components ofit.
And he he proceeded to tell meall these differences and he
even said now here are thequestions you need to be asking
all the suppliers.
He said I just want a levelplaying field when you and I
visit so that you know what's inthat bag and what you're
purchasing.
Speaker 1 (40:03):
It is.
Speaker 2 (40:04):
And he goes I'll even give you one better.
Many will come in here andthey'll say that this certain
weight of a sock is what thecustomer prefers.
You should always buy thisweight sock, he goes.
In reality, deanna, that sockis made off a particular machine
.
That machine can only make thatsock, he goes.
(40:29):
Odds are, those are themachines that they have and they
want you to make socks fromthat machine.
And so he said it's notnecessarily what the customer
wants and you need to be awareof that.
And so that started a businessrelationship that the years that
progressed after.
Every time I got promoted into anew category or new level, he
would wish me well, and we evenstay in touch via his son, rich,
(40:50):
today.
Just how's the family, how'severyone doing For me?
It?
Just when I think back on thatexample.
If I have any advice for anyone, it's humble, and use your
spotty sense.
Use your intuition for thepeople that you can trust, and
(41:10):
just remember that while you'vebeen in a category for a short
amount of time, in most casesthey've devoted their whole
career to that category and theyhave so much knowledge to teach
you and it behooves them foryou to be successful Right.
So use your intuition andlisten and take a chance on
(41:32):
trusting someone, and you know,you'll find out.
If you can't Right, you've gotto verify.
Speaker 1 (41:43):
But to me those are the relationships that change
the trajectory of my career.
Wow, that's powerful.
Stay humble, be open.
You know that and that'spowerful, and you know we.
We have a leader that taught usthat too.
St Walton taught us that.
About humility you knowhumility, like Sam.
(42:12):
You know we all had theopportunity to listen and work
and travel with Sam and do allthose wonderful things.
But what I learned of what youjust said from Sam was that
humility is not a weakness, it'sa quiet strength, and that's
exactly what Sam taught us andTossie taught us that.
You did that example and that'spowerful, deanna, it really is.
(42:32):
You can see why she's here.
So, deanna, thank you, thankyou, thank you.
We're looking forward for manythings with you, sharing with
our guests I mean from ourviewers and so what a great
morning and what a great start.
Speaker 2 (42:51):
Absolutely.
I'm so excited, let's go.
Speaker 1 (42:54):
All right.
So we're going to.
You'll be seeing her andlistening or seeing her video
she talked about in April withher guests, so be looking for
that and, of course, we'll becommunicating that to all of you
.
Again, thank you to all of ourviewers, all of our listeners.
Thank you so much for whatyou're doing.
We are very humbled that youhave chose to make doing
(43:18):
business in Bentonville part ofyour life.
So thank you, deanna, it'sgoing to be so.
Speaker 2 (43:22):
Thank you, deanna, it's going to be great.
Thank you, andy, okay.
Speaker 1 (43:24):
Thank you, wonderful job.
Goodbye everyone, have awonderful day.
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