wal-mart stores, inc. (nyse: wmt) bill...

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

Raymond James 35th Annual Institutional Investors Conference

March 4, 2014

Bill Simon President and CEO

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.


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FY14 Walmart U.S. overview


What did not work…

Macroeconomic

headwinds Comp sales Challenging

weather

What worked…

Market share Expense

leverage Key categories

Neighborhood

Market, Express,

& e-commerce

Based of FY14 financial results, market share for the 52 weeks ending Feb 1, 2014 for the Food, Consumables and OTC category according to The Nielsen Company

Bottom 10%

Merchandising

opportunities

Inconsistent

execution

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1962

Walmart founded

1988

Supercenter launch

1999

NM, dotcom launch

2014

Multi-format growth

Evolving to meet customers’ needs

Sustainable growth anchored by one mission

Discount

Supercenter

Next

generation

retail growth


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Supercenters deliver well against the stock-up trip

Supercenters continue to be among most productive assets in retail

• Strong and improving returns

• Flexing prototype size to meet different needs


Stock-up trip ~$585B market

60% of grocery spend

Market leader at ~25% share

3,228 supercenters are key … … to the stock-up trip

Source: IRI consumer panel data for 52 weeks ended July 14, 2013 & Nielsen consumer buying power report (for market size) market data based on Food,

Consumables and health & wellness (including rx) sales; unit count as of January 31, 2014

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Growth in quick trips


Neighborhood Markets and Walmart Express

provide convenient options…

…to meet customers’ changing

needs

Growing market

• Dollar, drug, & convenience stores have added 16k stores since 2005

• Current share leaves plenty of opportunity for growth

Walmart has ~10% share

Quick trip ~$415B market

40% of grocery spend

Source: IRI consumer panel data for 52 weeks ended July 14, 2013 & Nielsen consumer buying power report (for market size) market data based on Food,

Consumables and health & wellness (including rx) sales

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Very pleased with the Neighborhood Market format


Neighborhood Market

346 units

~40k sq. ft.

Unit counts as of January 31st, 2014; comp sales, excluding fuel, are on a 4-5-5 basis

Hybrid format competing across channels Fiscal 2014 Actual

Fiscal 2015 Plan

• ~40% growth in sales

• ~4% comp sales growth

− Solid mature store comps

− Strong sales per square foot

• Reduction in cap ex per store

• Returns comparable to a

supercenter

• ~500 to 525 total stores by year end

• ~35% revenue increase

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Capturing new dollars through Neighborhood Markets


Customer base for

Neighborhood Markets

New trips & new customers

Transferred sales

1

2

3

Existing customer

increased spend & trips

New markets

New customers

Neighborhood Markets complement existing real estate portfolio

bringing customers access & convenience

Source: Internal data

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Neighborhood Markets performing well


…driven by solid traffic gains

FY14 comp sales

Delivering strong results Strength across

the box...

Pharmacy

Fresh

Consumables

Add Picture

Results compare or

exceed those of

leading grocers

Source: Internal data, comps excluding fuel on a 4-5-5 basis

0%

6%

Q1 Q2 Q3 Q4

~5% comp

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Neighborhood Market convenience & differentiation


Fresh, fuel & Rx Meal solutions Suburban / urban

… Plus access to Walmart’s full assortment

Dollar Grocery Drug Online

Low prices

Fuel stations

Pharmacy

Fresh meal solutions

Access to full assortment

1

2

3

4

5

Neighborhood

Market

-


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Customers responding to Walmart Express format


20 units

~10 to 12k sq. ft.

Unit counts as of January 31st, 2014

• Test of concept: 13 stores

o Assortment & Services

o Rural / urban

Fiscal 2013 Actual

Fiscal 2014 Actual

Fiscal 2015 Plan

• 20 stores

• Refined logistics model

• ~9% comp sales growth

• Up to 120 total stores by year end

• Identify market potential

• Understand cross format interactions

• Test tethering concept

Walmart Express Convenient format with fresh, fuel & pharmacy

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Building capabilities to deliver full assortment


Convenient mix of assortment & services

Walmart’s full assortment

Supercenter walmart.com

Express

GM & Fresh Endless aisle

Leveraging global

best practices

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Walmart Express convenience & differentiation


Fresh, fuel & Rx Kiosk Rural

… Plus access to Walmart’s full assortment

Dollar Grocery Drug Online

Low prices

Fuel stations

Pharmacy

Fresh meal solutions

Access to full assortment

1

2

3

4

5

Walmart

Express

-


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Accelerated roll-out, nearly doubling the fleet next year!


Total Neighborhood Market & Walmart Express Total units by year

FY11 – FY15 Up to

~645

Expansive growth to continue in the next 3 years

+320% growth in 4 years

Based on fiscal year end unit counts

◄Walmart

Express

153 168 241

346 10

13

20

FY11 FY12 FY13 FY14 FY15

~500 to

525

Up to

120

◄Neighborhood

Market

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Continuously testing and innovating


Walmart on campus

Lockers

Grocery

drive-thru format

Scan & Go

Grocery

delivery & pick-up

Convenience store

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

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Q&A


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