wal-mart stores, inc. (nyse: wmt) duncan mac naughton · wal-mart stores, inc. (nyse: wmt) driving...
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Wal-Mart Stores, Inc. (NYSE: WMT)
ISI 4th Annual Retail Summit March 19th, 2014
Duncan Mac Naughton EVP, Chief Merchandising and Marketing Officer
Walmart U.S.
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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)
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Driving positive comp sales is key priority
Wal-Mart Stores, Inc. (NYSE: WMT)
Building the next generation of retail
We are well positioned with customers
Driving price separation
Localizing the broad assortment
Maximizing convenience Converging digital and physical
VA
Buy for less
Sell for less
Grow sales
Operate for less
Neighborhood Market and Express growth
650+
FY11 FY12 FY13 FY14 FY15
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The productivity loop fuels price investment
Wal-Mart Stores, Inc. (NYSE: WMT)
COGS savings
BUY FOR LESS
Food up streaming
Joint business planning Working with ~200 suppliers to drive savings across key lines of business
Global sourcing
Driving supply chain efficiency and product quality in wine, produce, dairy
Building strategic supplier partnerships to simplify global supply chains
U.S. manufacturing Collaborating with 150+ suppliers to
date; progress on track
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Heavy marketing support
Wal-Mart Stores, Inc. (NYSE: WMT)
Committed to delivering everyday low prices
Strategically investing in price
SELL FOR LESS
Source: Nielsen POS Data for 13-week ending period through January 31, 2014
Enhancing Walmart focus • Prioritizing our investments:
– Basket elasticities – Traffic driving categories – Localized customer needs
Tab for 3/2 – 3/8
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Innovating to make saving money even easier
Wal-Mart Stores, Inc. (NYSE: WMT)
Customer submits a Walmart receipt We compare prices Customer saves
automatically
Testing program in seven cities
Automatic ad matching through Savings Catcher program
Piloting across 7 cities starting in March
Supported with marketing
• TV and online radio
• Digital, search, and social media
• In-store signage, demos, and Smart Network features
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Driving traffic with broad assortment across the box
Wal-Mart Stores, Inc. (NYSE: WMT)
Top brands and innovative Items Big bets and mass merchandising
New flavors Private label innovation
Expanded brands
Mass merchandising Exclusive items
Video game trade-in Lowest prices
Red Lobster cheddar biscuit mix
Urbini hummingbird stroller
Bud Light Mang-O-Rita Price First Chicken noodle soup
Great Value LED light bulb
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Building on improvements in fresh
Wal-Mart Stores, Inc. (NYSE: WMT)
Enhancing quality
and value
• Providing quality and value
• Building shopper trust and loyalty
• Achieving operational excellence
• Expanding regional meat brands
• Enhancing promotional activity
• Improving produce operations and product flow
Keeping momentum in meat and produce
Focusing more on deli and bakery
Share: +50 bps
Share: +13 bps
FY14
FY14
Source: Nielsen Perishables Group for the 52-weeks ending December 28, 2013
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Tailoring our offering to local preferences
Wal-Mart Stores, Inc. (NYSE: WMT)
Localized assortment
• Adding regional brands • Filling assortment gaps • Leveraging syndicated data
Optimized category space
• Creating store clusters • Shifting modular space • Targeting features
Southeastern Mills gravy mix
Williamson Bros. BBQ sauce
Vidalia Brands onion ring batter mix
Roger Wood smoked meats
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Accelerating Neighborhood Market expansion
Wal-Mart Stores, Inc. (NYSE: WMT)
Pharmacy
Adult Beverages
Fresh
Focusing on traffic driving categories
Enhanced by Walmart ecosystem
Convenient options
Meal solutions
Fuel
Walmart services
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Offering customer choice Enhancing mobile capabilities
Integrating digital and physical for our customers
Wal-Mart Stores, Inc. (NYSE: WMT)
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
Testing Lockers
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Sharing our message with customers
Wal-Mart Stores, Inc. (NYSE: WMT)
Expanding digital marketing
Communicating key messages across channels
Price Standing behind our EDLP commitment
Product Showcasing great items
at great values
People Speaking to leadership
responsibility
Leading in social media Launching innovative programs
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Key Walmart U.S. priorities
Wal-Mart Stores, Inc. (NYSE: WMT)
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