presented by: amy koo, senior analyst promotional webinar april 24, 2014 getting smarter on walmart...

Presented by:

Amy Koo, Senior Analyst Promotional Webinar

April 24, 2014

Getting Smarter on Walmart International:Actionable Insights from Global Learnings

© Copyright 2014 Kantar Retail

Copyright © 2014 Kantar Retail. All Rights Reserved.

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No part of this material may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photography, recording, or any information storage and retrieval system now known or to be invented, without the express written permission of Kantar Retail.

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Disclaimers

The analyses and conclusions presented in this seminar represent the opinions of Kantar Retail. The views expressed do not necessarily reflect the views of the management of the retailer(s) under discussion.

This seminar is not endorsed or otherwise supported by the management of any of the companies covered during the course of the workshop or within the following slides.

© Copyright 2014 Kantar RetailSource: Company reports, Kantar Retail analysis

3

Canada: 389Canada: 389 United Kingdom: 574United Kingdom: 574 China: 405Includes 35%

interest in Trust-Mart

China: 405Includes 35%

interest in Trust-Mart

Brazil: 544Brazil: 544

Argentina: 104Argentina: 104

Chile: 353Walmart recently

acquired the minority owners’ stake, for 99.7%

ownership

Chile: 353Walmart recently

acquired the minority owners’ stake, for 99.7%

ownership

Mexico: 2,199Mexico: 2,199

Cent. America:Guatemala (209)El Salvador (83)Honduras (75)Nicaragua (80)Costa Rica (214)

Cent. America:Guatemala (209)El Salvador (83)Honduras (75)Nicaragua (80)Costa Rica (214) Africa:

South Africa (346)Botswana (11)Ghana (1)Lesotho (3)Malawi (2)Mozambique (7)

Africa:South Africa (346)Botswana (11)Ghana (1)Lesotho (3)Malawi (2)Mozambique (7)

Namibia (3)Nigeria (2)Swaziland (1)Tanzania (1)Uganda (1)Zambia (1)

Namibia (3)Nigeria (2)Swaziland (1)Tanzania (1)Uganda (1)Zambia (1)

India: 20India: 20

Japan: 374Japan: 374

Walmart’s Global Retail Presence

10,842 Global Store UnitsAs reported for Jan 31, 2014

Walmart US: 4,203Sam’s Club: 632

Walmart US: 4,203Sam’s Club: 632

100% Walmart ownership Walmart majority ownership in a publicly traded company


International in Investment Mode…But Growing

Source: KRiQ.com, Company documents 4

Stores

Sales

Operating Income

69% 12% 13% 6%

US Total EMEA & Canada

LatinAmerica

Asia

45% 12% 36% 7%

US Total EMEA & Canada

LatinAmerica

Asia

82% 18%

US Total InternationalTotal


International Return on InvestmentPerformance varies widely by market

Source: Walmart Investor Meeting, Kantar Retail research and analysis 5

*Note: India is not part of this comparison


Diversity of Formats GloballyBig, small, and service formats

Source: Kantar Retail research and anlaysis 6

Upscale Mall Development

Financial

Food ServiceSpecialists


Distinctiveness of Store FormatsBreadth of store sizes and purposes

Source: Kantar Retail store visits and analysis 7

Apparel and soft goods focus

Limited assortment convenience

Home improvement goods with construction audience


Walmart International: Regional Org ChartLeadership moves again

8

David CheesewrightPresident & CEO

Walmart International

Scott PricePresident & CEO

Walmart Asia

Enrique OstaléPresident & CEO

Walmart Latin America

TBDPresident & CEOEMEA/Canada

Krish IyerPresident & CEO

Walmart India

Greg ForanPresident & CEOWalmart China

Gian Carlo NucciPresident & CEO

Chile

Guilherme Loureiro

President & CEOBrazil

Shelly BroaderPresident & CEOWalmart Canada

Andy ClarkePresident & CEO

Asda, Walmart UK

Grant Pattison*President & CEO

Walmart RSA /Massmart

Scott RankPresident & CEOWalmex- Centro

America

Horacio BarbeitoPresident & CEO

Argentina

Steve DacusPresident & CEO

Japan/Seiyu

Brett BiggsCFO

Walmart International

Last update: April 2014

Neil AshePresident & CEOGlobal eCommerce

*Guy Hayward, current COO, will replace Pattison effective June 1, 2014


Leadership Focuses More BroadlyCould McMillon & global emphasis shift gravity from Arkansas?

Source: Kantar Retail research and analysis 9

Doug McMillonPresident/CEOWalmart Stores

Neil AshePresident/CEO

Global eCommerce

Most recently from five years leading International

Greater eCommerce presence with Pangaea


Strategic Priorities to Grow Internationally

EDLP Transformation

Digital & eCommerce Advancements

Global Leverage of Operational Resources

Private Brand Evolution

Focus on Sourcing



Asda’s Multichannel Grocery ApproachFocusing on convenience for the shopper

Source: Walmart Corp documents, Kantar Retail store visits and analysis 11

Click and Collect will expand to over 1,000 in the next five years – including new locations located at tube stations

Asda’s non-store grocery service enables shoppers to tailor the service to their schedules or needs. They also offer flexibility and availability to

shoppers without easy access to a car.

Asda’s non-store grocery service enables shoppers to tailor the service to their schedules or needs. They also offer flexibility and availability to

shoppers without easy access to a car.

Delivery Pass options offer unlimited grocery delivery service by the month


Importing Private Brands to Drop PricesCentralized procurement to increase offerings

Source: Kantar Retail store visits and analysis 12

Selection of imported wines & beers

Mini croissant for the in-store bakery

Leverage global procurement to source products

Improvement of global leverage and operations helped Walmart Japan find, source, and import products at a cheaper price more efficiently.

Improvement of global leverage and operations helped Walmart Japan find, source, and import products at a cheaper price more efficiently.


China Forces Spotlight on SourcingLife or death questions regarding quality


Walmart China Food Scandals

2014 – Fox meat labeled as donkey meat2008 – Baby formula scare

Recent Walmart Reaction100 million yuan nvestment in strengthen food safety, including inspections, supply chain management, and training. Mobile labs will be deployed to stores to test foods.

Food safety is the most pressing use case for establishing an ironclad chain of custody for products. Similar demands for verification will only

increase over time for sustainability, labor practices, and product origins.

Food safety is the most pressing use case for establishing an ironclad chain of custody for products. Similar demands for verification will only

increase over time for sustainability, labor practices, and product origins.


Creating Diversity of Audiences and Trip Missions

14

A Box for Every Purpose

Source: Kantar Retail research and analysis

SuperMarket

Discounter pricing

Premium Pricing

Bulk shopping trip

Top-up shopping

trip

Club

Discount

Hypermarket

SupermarketT1 – Range of Price Points to QualityT2 – Middle Income Shoppers

ClubT1 – Bulk Shopping / PriceT2 – Small Business

DiscountT1 – Top-Up Shopping at Price in NeighborhoodT2 – Weekly/Daily Needs Proximity to Home

HypermartT1 – One-Stop ShoppingT2 – Selection / Stock-Up

To increase shopper relevance over time, retailers must move beyond a beyond a one-size-fits-all approach. Consider specific audiences and

shopping occasions and align banners accordingly.

To increase shopper relevance over time, retailers must move beyond a beyond a one-size-fits-all approach. Consider specific audiences and

shopping occasions and align banners accordingly.


June 4–5 in Chicago, IL or June 18–19 in New York, NY

ForumForumMid YearMid YearNew Planning Coordinates: Navigating The Multichannel World

Please email [email protected] for more information.

Walmart International: Applicable Insights For The U.S. Market

June 5 (Chicago) & June 19 (NYC) 1:15 pm – 3:00 pm


Contact:

Amy KooSenior [email protected]

T:+1 617 912 2872www.kantarretailiQ.com

presented by: amy koo, senior analyst promotional webinar april 24, 2014 getting smarter on walmart...

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