Wal-Mart Stores, Inc. (NYSE: WMT) Jeff Davis EVP & CFO Walmart - - PowerPoint PPT Presentation

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

Jefferies 2014 Global Consumer Conference

June 19, 2014

Jeff Davis

EVP & CFO Walmart U.S.

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 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,

• 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)

3

Selection

Expand access

• Tethering
• Drive-thru pilot
• NHMs
• Walmart Express
• Digital access

Driving sustainable sales growth & strong fundamentals

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

Sales

Drive sales

• Focus on OSA
• Fresh quality
• New services
• New products
• New brands

Service

Customer first

• Engaged talent
• Bottom 10% stores
• Store experience

Save

Productivity loop

• Savings Catcher
• COGS savings
• Price investment

4

Focused on in-stock

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

Driving improved in-stock position

Company goal

When an item sells… …it gets restocked!

A simple process … … creating efficiencies

Binning Picks Counting

Q1 FY14 Q1 FY15

OSA First

98% 90% 95%

5

Improving quality and experience in fresh departments

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

Enhancing experience Strategic investments Bakery

French bread

We’ve driven sales and share gains across fresh departments Meat

Beef investment

Produce

Increasing price gap

Deli

Rotisserie chicken Improved execution Improved quality Improved presentation

6

Launching services to drive traffic

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

Affordable healthcare pilot Saving money, on money

Customer savings in first 1½ months Associates Public

For Walmart health plan members

7

Building customer trust with Savings Catcher

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

Submit receipt Walmart compares Customer saves

1 2 3

Increased spending More frequent trips Improved price perception

Savings made easy

8

Best in class training via a centralized talent center

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

One talent center… …for ~160 locations Real training in authentic setting Consistent quality hiring Best in class training

9

Early tethering results are encouraging

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

Order from Walmart Express (Oriental, NC) Delivery from Supercenter (New Bern or dot.com)

Customers have access to millions of items with many available for same day pickup

Oriental New Bern

… all from a 10k square foot box!

10

Creating convenience with digital & physical integration

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

Build a basket and select a pickup time Drive to a pickup depot;

• rder delivered to car
• ~15,000 square foot depot
• ~10,000 SKUs
• Grocery & OTC
• EDLP pricing

Testing a drive-through grocery format to open later this year

Book Pickup Time Check Out

11

Key takeaways

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

Sales:

We are focused on driving sustainable sales growth

Service:

We are dedicated to hiring & developing engaged associates

Selection:

We are innovating to expand access and convenience

Save:

We are committed to being the price leader

12

Q&A

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