have responded exceptionally well  to the high level of customer service our Associates provide, and to the introduction of Every Day Low Prices in all our retail formats  in Mexico.  “Sam Walton set the standard for our vision of leadership, and we are carrying  it forward.” Finally, it is a personal priority of mine to identify and develop the next generation of Wal-Mart leaders. For years, it was enough to just develop managers. But as the business environment becomes more challenging, it takes true leadership to guide a successful business. Sam Walton set the standard for our vision of leadership, and we are carrying it forward. We are committed to growing the leaders today who will propel this Company into tomorrow. It’s the right thing to do for our Customers, our Associates and  our Shareholders.  as we moved through the second half of fiscal 2001, it became evident that consumer spending was slowing and would not recover in time for the crucial holiday shopping season. Our Associates reacted appropriately, however, by continuing our focus  on customer satisfaction.  In particular, I’d like to thank our ASDA Colleagues (Associates) in the United Kingdom for their exceptional performance over the last year. For the fourth straight year, ASDA was voted “Supermarket of the Year” by  Checkout magazine. The division exceeded the  objectives set at the time we acquired ASDA, and our Colleagues accomplished our ultimate goal – taking care of our Customers and providing them with an exceptional value in the marketplace. Although we did not end the year the way we would have liked, the keys to our ability to manage a slowdown in the economy remain simple and effective. They are what we have built our business on since the beginning.  On a more personal note, I would like, on behalf of all Wal-Mart Associates, to thank David Glass for his leadership over the past 25 years. David served as Chief Executive Officer for 12 years and presided over more revenue and earnings growth than any other CEO in the history of retailing. We are fortunate that David has agreed to stay on in his present role, providing advice  and counsel to me and the entire Wal-Mart team. First, we must maintain an in-stock level unequaled in the retail world. Our commitment is unchanged: provide the products our Customers want at the moment they want to make the purchase.  The Wal-Mart Stores Division,  by far our largest, features our  Discount Store, Supercenter and Neighborhood Market formats. The year brought some truly bright spots for this division as well.  We’ve made exceptional strides in our food offerings through the Supercenters and Neighborhood Markets. This year, Wal-Mart became the largest retailer in the U.S. grocery industry, according to Supermarket News . That is truly a remarkable achievement, and I think Sam Walton would be proud. As always, we will continue to ensure that we are the  best food retailer, not just the largest. Second, we must provide the level of service our Customers expect and deserve. It’s not enough to provide merchandise and a safe, comfortable environment in which to shop. We must generate the excitement and enthusiasm necessary to build a relationship with the Customer and make each shopping experience better than the one before. This includes simple things like saying thank you and greeting our Customers warmly as they enter the store. Sam Walton called it “aggressive hospitality,” and it still works today.  At Wal-Mart, we’re passionate about delivering value to our Customers and Shareholders. As Shareholders, you play a vital role in our success as you invest in Wal-Mart stock and shop at our Wal-Mart stores and SAM’S CLUBS. While our history is rich with success, there’s no question that our best years are yet to come, and this time next year I expect to report another record year for  Wal-Mart. Thank you, and I look forward to visiting with you again next year. In July, we challenged our Associates to react to the slowing economy by reducing inventories by more than  $1 billion, the majority of which would come from the Wal-Mart Division. Despite disappointing holiday sales, our Associates not only met this goal – they exceeded it. The division had a strong first half of the year as our Associates built on last year’s phenomenal growth. But Third, we must provide our Customers with top-quality merchandise and services at Every Day Low Prices. After all, that’s what the sign says, and that’s our commitment to our Customers. 3 Lee Scott