Walmart Inc. · NASDAQ:WMT
Walmart — Investor Day (October 2013)
29 slides from Walmart's investor day presentation, Oct 15, 2013
Slide 1: 20th Annual Meeting for the Investment Community
\YSE:WMT 20th Annual Meeting for the Investment Community OCTOBER 15, 2013 | e
Slide 2: Sam's Club
Sam’s Club Rosalind Brewer President & CEO Sam’s Club 1
Slide 3: Sam's Club leadership team
Sam’s Club leadership team Todd Harbaugh Charles Redfield John Boswell Michael Dastugue EVP Operations EVP Merchandising SVP Marketing, SVP Finance Insights & eCommerce Don Frieson Whitney Head Ismat Mirza Bill Durling SVP Replenishment SVP General Counsel SVP People Sr. Director of 2 & Planning & A
Slide 4: Consistent growth at Sam's Club
Consistent growth at Sam’s Club Sound adherence to the …resulting in consistent sales club model… performance Net sales Operate for less (EDLC) Sell for less (EDLP) $56B Drive $54B volume Membership (base & fee) $49B FY11 FY12 FY13 FY14E 3 Note: 3-year CAGR based on FY10 – FY13 net sales
Slide 5: Elevating our brand; value-focused
Elevating our brand; value-focused Vision Mission “Become the most “Saving members money valued membership on items they buy most organization in the and surprising them with world” the unexpected find” 4
Slide 6: Great improvements across categories
Great improvements across categories Apparel Produce Health & family care Mid single-digit comp Mid single-digit comp Mid single-digit comp 5 Note: 4-5-4 comps for the 26-week period ended July 26, 2013
Slide 7: Social media contributing to Member base
Social media contributing to Member base Recent social media campaigns… …driving strong Member acquisition Over 157K Memberships purchased ~25,500 ~2,100 Facebook Twitter shares shares 6 Note: Offered March 4-6, 2013 …and social media buzz
Slide 8: Driving Member acquisition and retention
Driving Member acquisition and retention Simplified Traditional price Instant Cash rewards structure investments Savings for Plus Books Piloting 7
Slide 9: Committed to creating Member value
Committed to creating Member value Merchandise Access Experience Data Superior Member value 8
Slide 10: Merchandise strategy drives Member value
Merchandise strategy drives Member value Merchandise Access Experience • Creating value through differentiation • Bringing merchandise to life in the clubs • Strong holiday plan 9
Slide 11: Focusing on what matters to our Members
Focusing on what matters to our Members 10
Slide 12: Differentiating through quality and excitement
Differentiating through quality and excitement Heightened focus Create newness Aspirational on quality more often brands 11
Slide 13: Bringing merchandise to life in the Clubs
Bringing merchandise to life in the Clubs 12
Slide 14: 13
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Slide 15: Strong plan to finish out the year
Strong plan to finish out the year Mobile/online 14
Slide 16: Increasing anytime, anywhere access
Increasing anytime, anywhere access Merchandise Access Experience • Grand opening excitement • Disciplined growth plans • Integration of physical and digital 15
Slide 17: Excitement at new club grand openings
Excitement at new club grand openings 16
Slide 18: New clubs exceeding sales expectations
New clubs exceeding sales expectations FY14 YTD* club performance vs. plan… …driven by strong Member acquisition 20% 6% 2% relo Exp & Relo New Total 17 * As of October 4, 2013
Slide 19: Building more clubs with flat capital
Building more clubs with flat capital FY13 FY14 FY15 CapEx detail Actual Revised Projection Total capital spend $0.9B ~$1B ~$1B • New Clubs 9 12 - 13 13 - 16 • Relocation & expansion 5 7-8 4-6 Total new, relo & expansion 14 19 - 21 17 - 22 Remodel projects 67 71 55 - 60 Total sq. ft. (in millions) 1
Slide 20: Integrating physical and digital resources
Integrating physical and digital resources samsclub.com FY14 1H performance Site traffic: ~23% Multi-channel presence Mobile traffic: ~100% Physical presence Direct-to- ~40% home orders: 19 Note: FY14 1H results through July 31, 2013
Slide 21: Continually improving Member experience
Continually improving Member experience Merchandise Access Experience • Record associate engagement • Leveraging technology • Member services 20
Slide 22: Strong Member experience starts with associates
Strong Member experience starts with associates Creating an environment where all …resulting in another year of strong associates can win… Member experience scores • Record engagement • Associate engagement score improvement of 600 bps YOY • Improvements across all divisions 21
Slide 23: Leveraging technology to react dynamically
Leveraging technology to react dynamically Front end optimization Self check-out Convertible register Driving productivity without sacrificing Member experience • 9% increase in self check-out utilization YOY • Available in over 450 clubs, up from 300 last year 22
Slide 24: Focusing on serving the Member
Focusing on serving the Member Pharmacist-administered immunizations 23
Slide 25: Differentiating through personalization
Differentiating through personalization Merchandise Access Experience Data Superior Member value 24
Slide 26: Meeting Members' changing needs
Meeting Members’ changing needs New moms Millennials & families Business Members Boomers 25
Slide 27: Creating Member services
Creating Member services Creating value through relevant service offerings… Savings Enabling Connecting for your business your business your business Enabled by technology 26
Slide 28: Integrating data into the Member journey
Integrating data into the Member journey TRUST PROSPECTING ENGAGEMENT RENEWAL 27
Slide 29: Core strategy remains constant at Sam's
Core strategy remains constant at Sam’s • Differentiated merchandise • Integrated Member experience • Disciplined use of capital • Enhanced membership offering • Personalized Member value 29