Wal-Mart Stores, Inc. (NYSE: WMT)
William Blair 33rd Annual Growth Stock ConferenceJune 12, 2013
Duncan Mac NaughtonEVP, 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 FY14, 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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Customers adapting to the environment
Wal-Mart Stores, Inc. (NYSE: WMT)
• Jobs / job security
• Rising food prices
• Gas / energy prices
• Taxes
• Jobs / job security
• Gas / energy prices
• Rising food prices
• Keeping jobs in USA
Walmart moms
General population
*Based on internal survey data
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Driving the productivity loop Delivering a broad, local assortment
Walmart is well positioned to serve our customers
Wal-Mart Stores, Inc. (NYSE: WMT)
Serving customers through integrated channels
Operatefor Less Buy for
Less
Sell forLess
Grow Sales
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We have a solid framework to deliver on our strategy
Wal-Mart Stores, Inc. (NYSE: WMT)
Price
PeopleProduct
Place
Promotion
Responsibility
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EDLP delivers for customers every day
Wal-Mart Stores, Inc. (NYSE: WMT)
Source: 13 months Nielsen & Walmart data ending 4/27/2013. Excludes Walmart private label, slow moving, discontinued, random weight, Rx & Optical items. Slow moving items are those that sold fewer than 40 units or in fewer than 10 stores in the rest of market.
• EDLP strategy driving price leadership
• Consistently strong double digit price gaps*
• 100bps improvement in price gap in last 13 months
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Our EDLP commitment is enabled through EDLC
Wal-Mart Stores, Inc. (NYSE: WMT)
Up streaming
Joint business planning Domestic manufacturing
Global Sourcing
Production
Retail
Collaborating with suppliers to drive everyday low cost
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Sourcing quality USA products
Wal-Mart Stores, Inc. (NYSE: WMT)
• Met with ~25 governors• Addressed 3,500 suppliers• Holding manufacturing summit in August 2013 • Over 100 “Made in the USA “ projects in
process
Progress…
In stores & Walmart.com
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Delivering quality through brands and innovation
Wal-Mart Stores, Inc. (NYSE: WMT)
New /expanded brands Exclusives & innovation
Great innovation and quality brands at everyday low prices
Sero 7
$7.88 Bluray
$4.88 Accessories
$3.98 Bras
Man of SteelFlower
Cosmetics
Exclusive products Value innovation
iPhone now on Straight Talk
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Localizing assortment by store
Example: hand & body lotion clustering process
Example: regional ice cream
Wal-Mart Stores, Inc. (NYSE: WMT)
Consumables
Over 3,500 store specific ice cream modulars
Food
Creating a store of the community experience!
Demand
Ethnicity Geography
Cluster Decision
Income Competition
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Focus on freshness driving results in produce
Wal-Mart Stores, Inc. (NYSE: WMT)
*Produce comps are on a 4-5-4 basis
Fresh audits & improved trackingReduced time in supply chain
… and executionImproving product flow
Now backed by our Fresh Produce Guarantee
Val
ue
QualityQ2 Q3 Q4 Q1
FY13 FY14
Improving produce comps*Merchandising focus
7%
0%
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Communicating value and price in a unique way
Wal-Mart Stores, Inc. (NYSE: WMT)
For illustrative purposes
Fresh over and local basket challengecommercials
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Operational execution at the core of our strategy
Wal-Mart Stores, Inc. (NYSE: WMT)
*On shelf availability as measured by OSA 2.0
Feb 2012
May 2013
Consistent performance On shelf availability*
• Modular planning
• Technology & innovation
• Key item focus
Driving efficiency through…
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Leveraging physical footprint and dotcom capabilities
Providing for our customers…
Physical retail presence +4000 stores
Technology and Innovation
Endless Aisle Scan & Go
In Store Mode Pay with CashSame Day Delivery
Ship from Store Site to Store
Locker test
Convenient pickups & fast deliveries Seamless shopping experience
Wal-Mart Stores, Inc. (NYSE: WMT)
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Providing real opportunities for every associate
Wal-Mart Stores, Inc. (NYSE: WMT)
Current Walmart associates have…
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Leading on issues that matter to Walmart customers
Wal-Mart Stores, Inc. (NYSE: WMT)
• On track to reach our $20B goal of sourcing from women owned businesses by 2017
• Joint business planning with the top 50 women owned businesses
• Developed and launched the“Great For You” icon
• Saved our customers more than $2.3 billion on fresh fruit and vegetables**
• Launched program on Memorial Day
• Over 650 completed process & hired*
*As of June 7, 2013 **As of January 2013
Women’s economic empowerment
Veterans’ initiatives
Healthy foods
17 Wal-Mart Stores, Inc. (NYSE: WMT)
Veterans’ initiatives commercial
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Key takeaways
Wal-Mart Stores, Inc. (NYSE: WMT)
Well positioned to serve our customer
Price leader, delivering EDLP through EDLC
Collaborating across channels
Focused on a broad and local, quality assortment
Leading on issues that matter to our customers and associates
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