Wal-Mart Transport Efforts Mitigate Most Fuel Costs

Wal-Mart Stores says it reduced the impact of rising diesel fuel prices this spring by some two-thirds through transportation efficiency programs in its distribution network.

William Simon, president and CEO of Wal-Mart’s U.S. operations, said the retailer stepped up the efforts as energy costs raised the costs of getting goods to shelves and cut into store visits by the company’s sprawling consumer base.

“Our logistics team continues to drive routing and load efficiencies, allowing us to minimize a majority of the headwinds associated with rising diesel prices impacting the cost of goods,” Simon told investment analysts, according to a transcript of Wal-Mart’s earnings call posted on the company’s website.

“In fact, rising diesel costs were a headwind, two-thirds of which were mitigated by these transportation initiatives,” he said.

Wal-Mart reported a $3.8 billion net profit in the fiscal second quarter ending July 31, 5.7 percent better than the year before, on a 5.5 percent increase in sales.