Wal-Mart Stores, Inc. (NYSE: WMT) Duncan Mac Naughton EVP, Chief - - PowerPoint PPT Presentation

wal mart stores inc nyse wmt duncan mac naughton
SMART_READER_LITE
LIVE PREVIEW

Wal-Mart Stores, Inc. (NYSE: WMT) Duncan Mac Naughton EVP, Chief - - PowerPoint PPT Presentation

Wal-Mart Stores, Inc. (NYSE: WMT) Duncan Mac Naughton EVP, Chief Merchandising and Marketing Officer Walmart U.S. William Blair 33rd Annual Growth Stock Conference June 12, 2013 Forward-looking statement Walmart includes the following


slide-1
SLIDE 1

Wal-Mart Stores, Inc. (NYSE: WMT)

William Blair 33rd Annual Growth Stock Conference

June 12, 2013

Duncan Mac Naughton

EVP, Chief Merchandising and Marketing Officer Walmart U.S.

slide-2
SLIDE 2

2

Forward-looking statement

Walmart includes the following cautionary statement so that any forward-looking statements made by, or on behalf

  • f, 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,

  • ther 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)

slide-3
SLIDE 3

3

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

slide-4
SLIDE 4

4

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

Operate for Less Buy for Less Sell for Less Grow Sales

slide-5
SLIDE 5

5

We have a solid framework to deliver on our strategy

Wal-Mart Stores, Inc. (NYSE: WMT)

Price People Product Place Promotion Responsibility

slide-6
SLIDE 6

6

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

slide-7
SLIDE 7

7

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

slide-8
SLIDE 8

8

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

slide-9
SLIDE 9

9

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 Steel Flower Cosmetics

Exclusive products Value innovation

iPhone now on Straight Talk

slide-10
SLIDE 10

10

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

slide-11
SLIDE 11

11

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 tracking Reduced time in supply chain

… and execution Improving product flow

Now backed by our Fresh Produce Guarantee Value Quality Q2 Q3 Q4 Q1 FY13 FY14

Improving produce comps* Merchandising focus

7% 0%

slide-12
SLIDE 12

12

Communicating value and price in a unique way

Wal-Mart Stores, Inc. (NYSE: WMT)

For illustrative purposes

Fresh over and local basket challenge commercials

slide-13
SLIDE 13

13

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…

slide-14
SLIDE 14

14

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 Cash Same Day Delivery Ship from Store Site to Store Locker test

Convenient pickups & fast deliveries Seamless shopping experience

Wal-Mart Stores, Inc. (NYSE: WMT)

slide-15
SLIDE 15

15

Providing real opportunities for every associate

Wal-Mart Stores, Inc. (NYSE: WMT)

Current Walmart associates have…

slide-16
SLIDE 16

16

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

slide-17
SLIDE 17

17

Wal-Mart Stores, Inc. (NYSE: WMT)

Veterans’ initiatives commercial

slide-18
SLIDE 18

18

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