Walmart held a 2023 Investor Community Day, and it seemed to be a great example of a company executing on all cylinders. Strategy, execution, and somewhat fortunate timing due to consumer reprioritization of value items.

It reminded me of a Target earnings calls in the past several years, before the economic environment changed. Which reminds me, how do you know your investment plans have gone well? It's less about predicting accurately, but the best judge is this: "Are you ready when something unexpected happens?"

A few highlights from the call

* For the next five years, the company predicts 4% CAGR top-line, with higher growth in the bottom line.

These are the company's goals. Simple and understandable by everyone. Find high ROI projects to help the company beat these numbers.

* Pickup & Delivery CAGR 40% in last few years. These customers spend $1,000 more annually than traditional customers, and 50% of Walmart+ signups come from this group.

Wonder why pickup and same-day services (Target has been a leader here) are good investments? The answer is not in the "visit by visit" metrics. It's in the aggregate. Pickup and Delivery customers are both company's best customers.

50% of Walmart Plus Signups come from their Pickup & Delivery customers. So you have a clear funnel here.

* Walmart US has 400M SKUs online. 200M in apparel, 60M in home.

Walmart Marketplace is a key driver of growth. Focused on high-quality items and sellers, monetizing fulfillment, and advertising.

Speaking of advertising, did I mention that there has been 100% growth y/y in the number of sellers using Walmart Connect ads service?

This is a great lesson for everyone. Here are Walmart's goals:

• Find a steady top-line growth pace, but work to grow your bottom line faster in this environment

• Grow alternative, higher-margin revenue streams and get them growing faster than the traditional business.

• Find out who your highest performing customers are, and figure out how to delight them with services and products they will use again and again.