Wal-Mart Stores, Inc. (NYSE: WMT) Duncan Mac Naughton EVP, Chief Merchandising and Marketing Officer Walmart U.S. ISI 4 th Annual Retail Summit March 19 th , 2014
Forward-looking statement Walmart includes the following cautionary statement so that any forward-looking statements made by, or on behalf of, Walmart will enjoy the safe harbor protection of the PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, as amended. Such forward-looking statements, which will describe our objectives, plans, goals, targets or expectations, can be identified by their use of words or phrases such as “anticipate,” “estimate,” “expect,” “forecast,” “plan,” “projected,” “will be” or words or phrases of similar import. Statements of our expectations for FY15, and any subsequent fiscal years are forward-looking. Walmart’s actual results might differ materially from those expressed or implied in a forward-looking statement as a result of factors including, among others, recessionary economic environment, cost of goods, competitive pressures, availability of credit, geopolitical conditions and events, labor and healthcare costs, inflation, deflation, consumer spending patterns, debt levels and credit access, currency exchange fluctuations, trade restrictions, tariff and freight rate changes, fluctuations in fuel, other energy, transportation and utility costs, health care and other insurance costs, accident costs, interest rate fluctuations, other capital market conditions, weather conditions, storm-related damage to facilities, customer traffic, factors limiting our ability to construct, expand or relocate stores, regulatory matters and other risks set forth in our SEC filings. Our most recent Annual Report on Form 10-K and our other filings with the SEC contain more information concerning factors that, along with changes in facts, assumptions not being realized or other circumstances, could cause actual results to differ materially from those expressed or implied in a forward-looking statement. Walmart undertakes no obligation to update any forward-looking statement to reflect subsequent events. Wal-Mart Stores, Inc. (NYSE: WMT) 2
Driving positive comp sales is key priority Building the next generation of retail Driving price separation Localizing the broad assortment Operate Buy for for less less V A Grow Sell for sales less Converging digital and physical Maximizing convenience 650+ FY11 FY12 FY13 FY14 FY15 Neighborhood Market and Express growth We are well positioned with customers Wal-Mart Stores, Inc. (NYSE: WMT) 3
The productivity loop fuels price investment COGS savings Joint business planning BUY FOR LESS Working with ~200 suppliers to drive savings across key lines of business Food up streaming Driving supply chain efficiency and product quality in wine, produce, dairy Global sourcing Building strategic supplier partnerships to simplify global supply chains U.S. manufacturing Collaborating with 150+ suppliers to date; progress on track Wal-Mart Stores, Inc. (NYSE: WMT) 4
Committed to delivering everyday low prices Strategically investing in price Enhancing Walmart focus • Prioritizing our investments: – Basket elasticities – Traffic driving categories SELL FOR – Localized customer needs LESS Heavy marketing support Tab for 3/2 – 3/8 Source: Nielsen POS Data for 13-week ending period through January 31, 2014 Wal-Mart Stores, Inc. (NYSE: WMT) 5
Innovating to make saving money even easier Automatic ad matching through Savings Catcher program Customer submits a Customer saves We compare prices Walmart receipt automatically Testing program in seven cities Supported with marketing Piloting across 7 cities starting in March • TV and online radio • Digital, search, and social media • In-store signage, demos, and Smart Network features Wal-Mart Stores, Inc. (NYSE: WMT) 6
Driving traffic with broad assortment across the box Top brands and innovative Items Big bets and mass merchandising New flavors Private label innovation Video game trade-in Lowest prices Bud Light Mang-O-Rita Price First Great Value LED Chicken noodle soup light bulb Mass merchandising Exclusive items Urbini hummingbird Red Lobster cheddar stroller biscuit mix Expanded brands 7 Wal-Mart Stores, Inc. (NYSE: WMT)
Building on improvements in fresh Keeping momentum in meat and produce FY14 • Expanding regional meat brands • Enhancing promotional activity • Improving produce operations and product flow Share: +50 bps Enhancing quality and Focusing more on deli and bakery value FY14 • Providing quality and value • Building shopper trust and loyalty • Achieving operational excellence Share : +13 bps Source: Nielsen Perishables Group for the 52-weeks ending December 28, 2013 Wal-Mart Stores, Inc. (NYSE: WMT) 8
Tailoring our offering to local preferences Southeastern Mills Williamson Bros. gravy mix BBQ sauce Localized assortment • Adding regional brands • Filling assortment gaps Roger Wood Vidalia Brands onion smoked meats ring batter mix • Leveraging syndicated data Optimized category space • Creating store clusters • Shifting modular space • Targeting features 9 Wal-Mart Stores, Inc. (NYSE: WMT)
Accelerating Neighborhood Market expansion Enhanced by Focusing on traffic Walmart ecosystem driving categories Convenient options Meal Fresh solutions Pharmacy Fuel Adult Walmart Beverages services Wal-Mart Stores, Inc. (NYSE: WMT) 10
Integrating digital and physical for our customers Enhancing mobile capabilities Offering customer choice Testing Lockers Piloting Walmart To Go • Increasing choice and convenience • Expanded Grocery delivery test to Denver market October 2013 • Added free store pickup in Denver beginning January Wal-Mart Stores, Inc. (NYSE: WMT) 11
Sharing our message with customers Communicating key messages across channels Price Product People Standing behind our EDLP commitment Showcasing great items Speaking to leadership at great values responsibility Expanding digital marketing Launching innovative programs Leading in social media Wal-Mart Stores, Inc. (NYSE: WMT) 12
Key Walmart U.S. priorities Driving comp sales through price investment and assortment Delivering the best assortment with top brands, innovative products, and local items Converging digital and physical to serve customers how, when, and where they want to be served Connecting with customers using innovative programs across the most relevant channels Testing and innovating to deliver greater convenience Wal-Mart Stores, Inc. (NYSE: WMT) 13
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