future growth - walmex€¦ · audience in all of mexico within the retail category. with over 60...

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One of our competitive advantages has been to constantly invest in our long-term growth. To build the business of the future, this year we conducted certain changes: integrating processes and systems in Central America, and standardizing their formats; migrating administrative processes through GSSLA; investing in our new units and in sustainable infrastructure; modernizing our distribution centers; and launching walmart.com.mx, through which we evolved and opened up new communication and sales channels for our customers. future growth INVESTING IN OUR 2013 Financial and Social Responsibility Report 30

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Page 1: future growth - Walmex€¦ · audience in all of Mexico within the retail category. With over 60 eCommerce kiosks in certain units, our customers can interact with us, make their

One of our competitive advantages has been to constantly invest in our long-term growth. To build the business of the future, this year we conducted certain changes:

integrating processes and systems in Central America, and standardizing their formats; migrating administrative processes through GSSLA; investing in our new units and in sustainable infrastructure; modernizing our distribution centers; and launching

walmart.com.mx, through which we evolved and opened up new communication and sales channels for our customers.

future growthINVESTING IN OUR

2013 Financial andSocial Responsibility Report

30

Page 2: future growth - Walmex€¦ · audience in all of Mexico within the retail category. With over 60 eCommerce kiosks in certain units, our customers can interact with us, make their

Systems integrationin Central America

Global Shared Services for Latin America (GSSLA)

With the vision of continued growth and the optimization of our processes, we created the Global Shared Services Center for Latin America –GSSLA- located in San José, Costa Rica. It is here where we centralize administrative processes related to the Company’s transactions, such as accounts payable and receivable; asset management, centralized accounting; payroll processing; payment analysis; and supplier claims.

The GSSLA strategy, in line with the three strategic pillars of growth, leveraging, and return on investment, will create benefits for the region’s countries, organizations, areas, and associates it serves.

During 2013 we completed the integration of processes and systems in Central America and standardized the formats with those that exist in Mexico. Now we have greater visibility into operations and inventories, thereby producing better commercial results. In the future, the information generated by our systems in Central America will help us better understand the shopping habits of our customers, optimize the value proposition, manage prices with flexibility, and align our formats.

2013 Financial andSocial Responsibility Report

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Page 3: future growth - Walmex€¦ · audience in all of Mexico within the retail category. With over 60 eCommerce kiosks in certain units, our customers can interact with us, make their

Investing in new units

With the confidence we have in the growth opportunities existing in the countries where we operate, we decided to continue extending our value proposition. During the year we invested 14.0 billion pesos in 235 new units from the different business formats, representing a 7.1% increase in installed capacity, as compared to the previous year. In this way we were able to take our value proposition to 36 new cities and now be present in a total of 540, with 2,861 units throughout Mexico and Central America and a total sales floor of 71.2 million square feet.

Investing in infrastructure for the distribution centers

During 2013 we implemented multiple investment projects that helped make our logistics operation more efficient and increased our distribution capacity to our stores and clubs. We opened three new distribution centers in the metropolitan area of Mexico City, which serve over 100 clubs and optimize the receiving flow from suppliers and the transfer of merchandise among distribution centers. Programs were implemented to optimize the use of our trailer fleet without affecting our operations. Each of our units is equipped with GPS, thereby improving the traceability of the vehicles for better decision making. We have automated more processes, making it easier to increase our response capacity during periods of high volume and to ensure merchandise arrival, for more successful shopping seasons.

Investing in sustainable infrastructure centers

If we are to continue growing sustainably without having our operation impact the environment, it is essential that our growth strategies consider reducing water and energy use, optimizing waste management, promoting environmental sustainability throughout the supply chain, and promoting care for biodiversity.

With this in mind, in 2013 we invested in several activities in Mexico, such as increasing the number of water treatment plants to 642, producing 7.9% reduction in comp-store water use, as compared to 2012. Doors were installed on refrigeration display cases in our units in Mexico, and we modernized our lighting system by installing LED technology, reducing energy use by 61 million kWh, which represents a savings of 3.3% over 2012. A new wind energy plant began operations in Tehuantepec, with the capacity to provide energy for 886 units. We also promote the best sustainable practices of our suppliers that reduce the use of raw materials and increase the use of recycled and renewable ones. Strategies, policies and procedures guaranteeing biodiversity protection during construction stages and throughout the operating life of our units have been put into place.

In 2013 we invested in several activities in Mexico, such as increasing the number of water treatment plants to 642, producing 7.9% reduction in comp-store water use, as compared to 2012.

2013 Financial andSocial Responsibility Report

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Page 4: future growth - Walmex€¦ · audience in all of Mexico within the retail category. With over 60 eCommerce kiosks in certain units, our customers can interact with us, make their

eCommerce

An ever increasing number of customers prefer the convenience of online shopping and therefore, in keeping with this reality concerning their shopping habits, in June we launched our eCommerce portal walmart.com.mx. In just seven months of operation, our site had more than 28 million hits. In fact, according to Comscore, walmart.com.mx is the eCommerce site with the largest audience in all of Mexico within the retail category. With over 60 eCommerce kiosks in certain units, our customers can interact with us, make their orders from the store, and pay at any of our many registers.

The launching of walmart.com.mx was added to other eCommerce portals we already have in operation: sams.com.mx, superama.com.mx and vudu.mx. Improvements were made this year to superama.com.mx and we relaunched the Superama app for iOS, Android and Windows. What is more, with its portal, the telephone, and the smartphone app, Superama had 7.5 million customers. According to Euromonitor International, superama.com.mx has become a consolidated leader in grocery sales via a website.

Vudu, our online movie site made progress over last year, with customer traffic of almost 5.2 million people. It should be noted that due to the sales volume achieved with these channels, we now have an eCommerce-devoted distribution center. We have shown that we are working to become one of the best eCommerce companies in Mexico, with the best assortment, the best prices, the best shopping experience, and the best security for our customers.

Medimart, our broad line of generic pharmaceutical products –launched in May 2007- is sold in all our formats and in a network of over 1,150 pharmacies from different companies throughout Mexico. With over 350 drugs for the most frequent illnesses in the country, such as diabetes, hypertension, obesity, depression, gastritis, respiratory ailments, and others, Medimart guarantees its customers at least 50% savings over market-leading brands. The drugs are made by 25 leading pharmaceutical companies who produce generic products and they are audited under the strictest quality standards before being sold by Walmart de México y Centroamérica.

Medimart is sold in all our formats and in a network of over 1,150 pharmacies from different companies throughout Mexico. With over 350 drugs made by 25 leading pharmaceutical companies

Medimart

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Page 5: future growth - Walmex€¦ · audience in all of Mexico within the retail category. With over 60 eCommerce kiosks in certain units, our customers can interact with us, make their

growth & new channels

SUPERAMA HAD 7.5 MILLION CUSTOMERS

THROUGH ITS ECOMMERCE CHANNELS

VUDU, OUR ONLINE MOVIE SITE RECEIVED ALMOST

5.2 MILLION VISITS

+350 DRUGS COMMERCIALIZED OVER 1,150 PHARMACIES

FROM DIFFERENT COMPANIES IN MEXICO

WE INVESTED 14.0 BILLION PESOS IN 235 NEW UNITS 214 IN MEXICO 21 IN CENTRAL AMERICA

WALMART PRESENCEWE REACHED 36 NEW CITIES2013 540 CITIES 71.2 MILLION SALES FLOOR SQ. FT. 2012 504 CITIES 66.5 MILLION SALES FLOOR SQ. FT.

+ 7.1%MEXICO AND

CENTRAL AMERICA SALES FLOOR

INCREASE

IN JUST 7 MONTHS OF OPERATION,

walmart.com.mx HAD MORE THAN

28 MILLION HITS

2013 Financial andSocial Responsibility Report

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