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BENTONVILLE, Ark. — Walmart was founded more than 60 years ago in a small town in Northwest Arkansas. Now, it is a global retailer with enough employees to fill a big city. So, how has the company managed to grow exponentially without losing the culture that made it successful at the start?
That was the subject NACDS president and CEO Steve Anderson and Walmart chief talent officer Lorraine Stomski explored in a discussion titled “Culture at Scale: Creating and Sustaining a Vibrant and Genuine Culture Internally and Externally.”
The conversation—which took place at the recent Future of Commerce 2030 event at Walmart's new headquarters in Bentonville—explored what makes the retailer’s culture unique and how the company continues to nurture that culture while simultaneously embracing technological change.
Walmart’s culture, or as Stomski calls it, “the magic of Walmart,” is deeply rooted in the company’s values and leadership philosophy. “Sam Walton called it the Walmart chemistry,” she said. “It’s unique and special. Our leaders reflect our values—they live it, act it, and breathe it every single day.”
While many companies claim to have a strong, relationship-oriented culture, Stomski noted that Walmart’s approach is magnified in its scale and execution. “It doesn’t feel like we have 2.1 million employees because of the way we operate,” she added. “That’s part of the magic.”
Scaling Culture Across Millions
With a workforce the size of a major city, Walmart’s challenge is maintaining a cohesive culture across a vast network of stores, clubs, and offices. Stomski said that talent selection and continuous learning are crucial to achieving this.
“We use rigorous selection processes to ensure that the talent we bring in aligns with our purpose, culture, and values,” she explained. Walmart assesses over a million candidates annually, ensuring that new hires understand and connect with the company’s mission.
Beyond hiring, Walmart invests heavily in leadership development through initiatives like Manager Academy, a modernized version of the Walton Institute that was originally created by Sam Walton and his wife Helen.
“We bring all our store managers—over 4,700 of them—for a weeklong deep dive on culture and leadership in Bentonville,” Stomski said. Before attending, managers complete a 360-degree feedback survey, evaluating their leadership style based on input from their teams.
Senior leaders, including CEO Doug McMillon, actively participate in training sessions, reinforcing the principle of leaders as teachers. Additionally, retired Walmart leaders and merchants contribute to the program, sharing firsthand experiences and lessons from Sam Walton himself. “It’s not just about teaching values—it’s about storytelling and leading through personal experience,” Stomski emphasized.
Culture in the Physical Workplace
Noting that Walmart is now transitioning into its new headquarters campus, Anderson asked how the company ensured its culture remained intact throughout the move. Stomski shared an anecdote about Greg Penner, chairman of Walmart’s board, debating the choice between glass railings and metal railings—ultimately opting for the more cost-effective option in alignment with Walmart’s Everyday Low Cost (EDLC) philosophy. “Even at that level of detail, we are constantly thinking about maintaining our culture,” she said.
The Future of Talent at Walmart
Looking ahead, Stomski highlighted how Walmart is leveraging artificial intelligence (AI) to optimize talent management. “AI will help us identify hidden talent within our organization, matching associates with opportunities based on their skills and aspirations,” she said. Walmart has also removed 75% of college degree requirements from its positions, taking a skills-first approach to hiring and promotion.
AI is also being used to enhance learning and hiring processes. For instance, Walmart Academy leverages AI to generate customized interview guides, ensuring that hiring managers ask contextually relevant questions. Additionally, AI assists in developing learning content for training programs, augmenting the work of instructional designers.
Lessons for Other Organizations
For Walmart’s supplier partners and other organizations seeking to strengthen their cultures, Stomski offered two key pieces of advice: listen to employees and observe behaviors.
“You have to listen to the associates out there serving customers every day,” she said. “They practice radical candor and will tell you the truth.” She also stressed the importance of aligning leadership behaviors with company values. “It’s not enough to have values on a wall—you have to ensure they are lived daily and hold people accountable when they are not.”
Culture as a Competitive Advantage
Steve Anderson concluded the conversation with a quote from legendary management consultant Peter Drucker: “Culture eats strategy for breakfast.” Stomski agreed, emphasizing that Walmart’s long-term success is built on its ability to empower people and foster a strong, values-driven culture.
“At Walmart, strategy is important, but it’s our culture that differentiates us,” she said. “If you keep our four values consistent, the decisions you make and the way you lead will serve you well.”
