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NYSE: WMT1
Session 1
NYSE: WMT 2
Wal-Mart Stores, Inc. International Field Trip at ASDA• Meeting is being video webcast
• All presentations, including those completed at conferences,are archived for one year at www.walmartstores.com/investors
• Upcoming dates:– April 26, 2010, North Bergen, N.J. Supercenter tour– May 18, 2010, Q1 earnings– June 4, 2010 Annual Shareholders’ Meeting– August 17, 2010, Q2 earnings– October 13, 2010 Meeting for the investment community
NYSE: WMT 3
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 all of FY11, 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.
Cautionary statement pursuant to the Private Securities Litigation Reform Act of 1995, as amended
NYSE: WMT4
Tom Schoewe CFO Wal-Mart Stores, Inc.
NYSE: WMT 5
Walmart financial priorities
FY10 Results (Year ended Jan. 31, 2010)
GrowthGrowth
LeverageLeverage
ReturnsReturns
• Grew constant currency net sales 3.4%1
• Added 34 million net square feet• Organic and acquisitions
• Delivered strong gross margin• Leveraged operating expenses in Q4• Continued best practice sharing
• Ended FY10 with Free Cash Flow of $14.1 billion2
• Delivered ROI equal to previous year
1. See additional information at the end of this presentation regarding constant currency net sales, a non-GAAP financial measure 2. See additional information at the end of this presentation regarding free cash flow, a non-GAAP financial measure
NYSE: WMT 6
Worldwide commitment to Walmart’s productivity loop
NYSE: WMT 7
Walmart U.S.’s Project Impact strengthens the business foundation
• Lead on price
• Clarify merchandise offering
• Improve customer experience
• Increase productivity
• Enhance ROI
Save Money. Live Better.
WinPlay
Show
Customer
FastFriendly
Clean
NYSE: WMT 8
Walmart U.S.’s Project Impact strengthens the business foundation
• Assortment
• Rollbacks
Save Money. Live Better.
WinPlay
Show
Customer
FastFriendly
Clean
NYSE: WMT 9
Walmart U.S.’s Project Impact strengthens the business foundation
• Project Impact
• Field structure – One Team
• Comparisons
Save Money. Live Better.
WinPlay
Show
Customer
FastFriendly
Clean
NYSE: WMT 10
Sam’s Club continues to focus on core initiatives
Member Relationships
Efficient & Engaging
Experience
Fewer, Bigger, Better
Superior Value
& Growth
Best Choices
Savings Made Simple
NYSE: WMT 11
Sam’s Club’s
• Closed 10 underperforming clubs
• Upgraded & outsourced in-club demos
• Improving merchandise assortment
• Aligned Sam’s home office
• Eliminated club membership sales positions
NYSE: WMT 12
Walmart International prioritizes growth• Click to edit Master text styles
– Second level• Third level
– Fourth level» Fifth level
Smart growth
by winning locally
Balancing growth and return
by optimizing our portfolio
Increasing profitability
by leveraging globally
NYSE: WMT 13
2006: $308.9 Billion 2010: $405.0 Billion
Walmart U.S. 63.8% International 24.7% Sam’s 11.5%
Walmart U.S. 67.9% International 19.2% Sam’s 12.9%
Walmart US Walmart Int’l Sam’s
Net Sales for Fiscal Year ended Jan. 31,
International growth has outpaced the rest of the company
NYSE: WMT 14
Walmart’s many opportunities for growth and leverageWalmart U.S. U.K. Mexico
Brazil ChinaCanada
C. America
Sam’s
Argentina
Japan
Chile India
NYSE: WMT 15
International leverage team takes on new roles
Operations Supply ChainSupplier
DevelopmentMerchandise Development Marketing Integration
Traditional functional roles & centralized support
New International leverage team
Integration Innovation & Process Purchase Leverage
NYSE: WMT 16
Leveraging Scale and Expertise
• Process consistency
• Global brand relationships
• Global supplier relationships
• Price communications
• Merchandising
• Sustainable thinking
• Integration
Walmart increases profitability by leveraging globally
NYSE: WMT 17
Mature Markets
Emerging MarketsR
etur
ns
Risk
Walmart balances growth with strong returns
NYSE: WMT 18
Total International Units: 4,068
Canada317 Units
China283 Units
United Kingdom 371 Units
Japan371 Units
India1 Unit
Mexico1,472 Units
Brazil 436 Units
Argentina44 Units
Central America 519 Units
Chile 254 Units
As of March 31, 2010
Walmart International currently has 4,068 units in 14 countries
NYSE: WMT 19
Asda press release
NYSE: WMT20
Andy Bond, Asda,President and CEO
NYSE: WMT 21
• Strong performance over the last four years
• Clear and confident strategy for future growth
• Significant potential for global leverage
• Depth of leadership talent
Key takeaways
NYSE: WMT 22
Andy Clarke
Chief Operating Officer
Darren Blackhurst
Chief Merchandising Officer
Chet Kuchinad
Executive People Director
Doug Gurr
Executive Development Director
Andrew Moore
George Executive Managing Director
Andy Bond
President and CEO
Judith McKenna
Chief Financial Officer
Rick Bendel
Chief Marketing Officer
Nick Scrase
IPL Managing Director
Jon Wragg
Commercial Director
The Asda Management Team
NYSE: WMT 23
Session 1• Asda and market context• Successful last four years• Today• Future growth
Break
Session 2• George• Leveraging globally• Q&A
Agenda
NYSE: WMT24
Asda and Market Context
Judith McKenna, Asda,Chief Financial Officer
NYSE: WMT 25
Notes:(1) As at 15th April 2010(2) As per Wal-mart Stores, Inc. 10K(3) Kantar (formerly TNS) Worldpanel, 52 weeks ended 27th Dec 2009, share of Grocer market
• 374 stores & 23 DCs
• 2009 sales - £19.9bn / $31.2bn
• 18.3m customers
• 17.1% market share
• ~170k colleagues
1
1
2
3
3
Asda – Business overview
NYSE: WMT 26
Asda – Sales mix
Food, 61%
Clothing, 7%
Home & Leisure, 9%
H&B/Non Ed, 15%
Fuel, 8%
Asda sales mix (2009)
Source: Asda
NYSE: WMT 27
2002 2006 2009
Supercentres
Superstores
Supercentres
Superstores
Supermarkets
George HS
Essentials
Av. 46k sq. ft.
Av. 17k sq. ft.
Av. 28k sq. ft.
Av. 85k sq. ft.
Living
296296
2222
2424
2929
Asda – Evolution of store formats
NYSE: WMT 28* 3 supermarkets opened in Q1 2010
500,000 sq. ft.(inc extensions)
5 new superstores
5 new supermarkets *
Up to 5 new Living
Asda – New space 2010
NYSE: WMT 29
Channels and services sales have quadrupled since 2006
• Grocery Home Shopping
• Asda direct / George.com
• Collect In-store
• Take Home Today
• Financial Services
• Asda Mobile
Asda – Channels
NYSE: WMT 30Source: Kantar Worldpanel (formerly TNS), UK Grocery Market Share, 52 weeks to 27th Dec 2009
UK Grocery market share (2009)
Others
UK Food retail market context
NYSE: WMT 31
GDP (Growth) Interest Rates (%)
Unemployment (%)
Average Pay Growth
Inflation (CPI %) UK Budget Deficit
Source: Economist Intelligence Unit
2006 2007 2008 2009 2010c
2006 2007 2008 2009 2010c
UKUS
2006 2007 2008 2009 2010c
UK
US
2006 2007 2008 2009 2010c
UKUS
2006 2007 2008 2009 2010c
UKUS
2006 2007 2008 2009 2010c
UKUS
0%
0%0%
0%0% £0m
UK Economic context
NYSE: WMT 32
Year on year change in monthly ASDA income tracker
Significant pressure on consumers
NYSE: WMT 33
Political uncertainty
General Election: 6th May
NYSE: WMT 34
0%
2%
4%
6%
8%
10%
12%
14%
Quarterly food inflation
Feb2007
Feb2010
Source: Office for National Statistics
July 07 Aug 08 Nov 09
Inflation has come out of the system
NYSE: WMT 35
Q4 2009 Q1 2010
Source: Kantar Worldpanel (formerly TNS), 12 weeks to 27th Dec 09 and 21st March 2010, multiples total till roll growth (VAT adjustment estimated +0.7% Q4, -1% Q1)
+6.1%
+2.7%
Market growth (VAT adjusted)
A tougher market in 2010
NYSE: WMT 36
• UK market highly competitive
• Market has slowed in Q1
• Consumer confidence fragile – cost of living primary concern
• We remain cautious about the economic outlook
• Asda is well positioned to succeed
Asda is well positioned to succeed
NYSE: WMT37
Successful last four years
Andy Bond, Asda,President and CEO
NYSE: WMT 38
2010200820072006
Operational Improvement
Customer Differentiation
Building blocks for future growth
Three Horizons – successfully completed
NYSE: WMT 39
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09
YoY
Gro
wth
%
Total Market
Source: Kantar Worldpanel (formerly TNS) Total Till Roll Sales; 12wks ended 27th December 2009
Asda growth vs. market (2006-09)
2006-2009 consistently outperformed the market…
NYSE: WMT 40Source: Kantar Worldpanel (formerly TNS), UK Grocery Market Share, 52 weeks to 31st Dec 2006 versus 52 weeks to 27th Dec 2009
+0.6%
-0.6%
+0.6%
0%
17.1% 11.7% 16.1% 30.6%Market Share 09
Change in market share (2006-2009)
…and our key competitors
NYSE: WMT 41
Customer“Britain’s favourite”
Operating Model“Britain’s lowest
cost to operate supermarket”
Colleague“Great place to
work”
Shareholder“Profitablegrowth with
increased ROI”
A simple, consistent winning strategy
NYSE: WMT 42Source: Kantar Worldpanel (formerly TNS), 52 weeks ending 27th Dec 09
CustomerCustomer
Over 2.5m more Asda customers
2005 2009
15.7
16.3
16.9
17.7
18.3
Winning through a clear customer proposition
NYSE: WMT 43
CustomerCustomer
Source: Asda internal analysis, rolling 52 week average price gap
2006 2009
Asda price gap vs. market (2006-09)
+2%
6%
5%
4%
3%
2%
Delivering consistent low prices…
NYSE: WMT 44
CustomerCustomer
externally verified…
NYSE: WMT 45
CustomerCustomer
TV campaignPress
…and well communicated
NYSE: WMT 46
CustomerCustomer
Broadening appeal through quality and range
NYSE: WMT 47Source: Kantar Worldpanel (formerly TNS), 52 weeks to 27th Dec 09
Asda customer demographic (2009)
ABC1 – >50% of growth over
last 2 years
Appealing to a wider demographic
NYSE: WMT 48
Customer“Britain’s favourite”
Operating Model“Britain’s lowest
cost to operate supermarket”
Colleague“Great place to
work”
Shareholder“Profitablegrowth with
increased ROI”
A simple, consistent winning strategy
NYSE: WMT 49
Op Model
Buy forLess
Sell forLess
GrowSales
Operate forLess
EDLC enables EDLP – lowest cost to operate
NYSE: WMT 50
Op Model
2009200820072006
Source: Asda
500
400
300
200
100
£m
Asda “We Operate for Less” Programme (2006 - 2009)
£450m of cost savings since 2006
NYSE: WMT 51
Op Model
Better for environment
Better for EDLC
Better for customers
CO2 Emissions
30%
Carrier bag usage
Own brand packaging
25%
Waste diverted from landfill
Source: Asda, since 2005
>50%
>75%
Sustainability - £40m+ saved and invested in EDLP
NYSE: WMT 52
Op Model
Product AvailabilityQueuesFriendly &
Helpful Service
No. 1
1. Source: Yougov Last Visit perception data 2009
2. Source: Asda internal measurement
95% <1+1Out of stocks
down 12%
Focus on cost and great customer experience
1 2
2
NYSE: WMT 53
Customer“Britain’s favourite”
Operating Model“Britain’s lowest
cost to operate supermarket”
Colleague“Great place to
work”
Shareholder“Profitablegrowth with
increased ROI”
A simple, consistent winning strategy
NYSE: WMT 54
People
Colleague Turnover
AbsenceHighest ever colleague
engagement
Bonus
2007 2008 2009
Source: 1. Asda We’re Listening Survey results
Productivity
Asda - A great place to work
1
NYSE: WMT 55
Customer“Britain’s favourite”
Operating Model“Britain’s lowest
cost to operate supermarket”
Colleague“Great place to
work”
Shareholder“Profitablegrowth with
increased ROI”
A simple, consistent winning strategy
NYSE: WMT 56
• Comp sales
• EDLC
• Inventory reduction
• ROI enhancing formats
Asda ROI %
Improving returns
1. ROI is based on continuing operations
1
NYSE: WMT 57
Shareholder
Significant development in format and channels
NYSE: WMT58
Today
Andy Bond, Asda,President and CEO
NYSE: WMT 59
YoY Sales Growth – March 2010
Source: Kantar Worldpanel (formerly TNS), total till roll, 4 weeks ended 21st March
+2.6%
+7.0%
+2.9%
+5.8%
+2.7%
Market
Recent trading not up to our high standards
NYSE: WMT 60
Recent trading has been challenging
• Below our high standards• Journey to EDLP• More work to do to sharpen up in store• Confident in plan
Market
Asda
• Inflation out of system• Disposable income down
NYSE: WMT61
Future growth
Andy Bond, Asda,President and CEO
NYSE: WMT 62
• Great few years
• Time for a new chapter
• Protect and grow core business
• Britain’s favourite retailer across more channels
• Two clear aspirations - next five years• Clear No. 2 in Food• Clear No. 1 in Non Food
The New Chapter – Strategic goals
NYSE: WMT 63
Comp >Comp >MarketMarket
100 100 SuperSuper
marketsmarkets
New core New core storestoregrowthgrowth
150150LivingsLivings
BritainBritain’’s s FavouriteFavouriteRetailer Retailer across across moremore
channelschannels
No. 2 No. 2 FoodFood
No. 1 No. 1 Non FoodNon Food
World World class class
dotcomdotcom
Global leverageGlobal leverage
The stepping stones to our long-term goals
NYSE: WMT 64
Renewing our customer promise
NYSE: WMT 65
Comp >Comp >MarketMarket
100 100 SuperSuper
marketsmarkets
New core New core storestoregrowthgrowth
150150LivingsLivings
BritainBritain’’s s FavouriteFavouriteRetailer Retailer across across moremore
channelschannels
No. 2 No. 2 FoodFood
No. 1 No. 1 Non FoodNon Food
World World class class
dotcomdotcom
Global leverageGlobal leverage
The opportunity – Formats and channels
NYSE: WMT66
The New Chapter – Format Development
Andy Clarke, Asda,Chief Operating Officer
NYSE: WMT 67
Within 5 Years2002 2006 2009
Supercentres
Superstores
Supercentres
Superstores
Supermarkets
George HS
Essentials
Av. 46k sq.ft
Av. 17k sq,ft
Av. 28k sq.ft
Av. 85k sq.ft
Living
296296
2222
2424
2929
150150
100100Supermarkets
Living
Format development
NYSE: WMT 68
• Only 70% of UK in ASDA drive time
• Zoning framework challenging
• New stores openings successful
• Solid pipeline of openings
Core stores
NYSE: WMT 69
• Stores for the local community•Local/Ethnic•Halal Meat counters•Pharmacy•Galleria – with Walmart
• Construction costs down 12%
• Extension via mezzanines
Core stores – store initiatives
1. since 2006
1
NYSE: WMT 70
• Asda Essentials launched in 2006
• Private brand only
• Customers desired full weekly shop
• Proven supermarkets model
• Full product offer
• Aspiration to have 100 supermarkets
Supermarkets – origins
1. 8,000 – 25,000 sq. ft.
1
NYSE: WMT 71
Supermarkets – The Customer Offer - Price & Range!
NYSE: WMT 72
• A profitable model
• Prices same as chain
• Optimise category mix
• Obsessed with waste and markdowns
• Flow of goods – improved process
• Non-value added task removal
• Distinctive service
Supermarkets - Operating model
NYSE: WMT 73
Supermarkets - Pontefract before and after
NYSE: WMT 74
• GM standalone opportunity
• Currently 24 Livings
• Model evolved since 2004
• 2009 – paused for breath
• Proven successful model
• Aspiration to have 150 Livings
Living – origins
NYSE: WMT 75
MumsKids under 12
Play
Clothe
Nurture
Home
Service
Relax
Seasonal
Seasonal
Living – Customer proposition
NYSE: WMT 76
• Optimise category mix
• Opening/Build costs reduced by 1/3
• New management structure and driving lower shrink, waste and inventory
• Strong ROI
Living – Operating model
NYSE: WMT 77
Living – Switching the store layout
NYSE: WMT 78
Strong ROI across all formats
ROI by Asda format
Source: Asda model
Supercentre Supermarket Superstore Living
NYSE: WMT 79
• Confidence to drive new and existing formats
• Supermarket and Living formats to drive future growth
• Maintain focus on enhancing ROI
Key takeaways
NYSE: WMT80
The New Chapter – Winning Digitally
Doug Gurr, Asda,Executive Development Director
NYSE: WMT 81
Food market future growth
Non-food market future growth
Top 4 Share76%
Top 4 Share19%
Source: Asda internal analysis
New space 30%
Comp
50%
Online 20%
Online 100%
The online potential
NYSE: WMT 82
Price Social Media
ChoiceTrust
great value for money
happy purchase
compact but does the job!
nice but small
worst ever purchase
The evolving customer
NYSE: WMT 83
Buying scale
Lowest cost to operate
Traffic
Asda personality
GLO
BA
L LOC
AL
Winning online
NYSE: WMT 84
“In your store” “To your door”
Food H&LGeorge
The multi-channel vision
NYSE: WMT 85
Over £500 million
turnover*
• 4500 colleagues• 1100 vans
• 165 stores• 1 home shopping centre
40% YOY growth
*Source: Asda, rolling 52week basis
Food Home Shopping
NYSE: WMT 86
Customer satisfaction
1. Asda customer research
94%1
NYSE: WMT 87
NYSE: WMT 88
“In your store” “To your door”
Food H&LGeorge
The multi-channel vision
NYSE: WMT 89
Source: Asda
Launched nationwide in the last 12 months
In-store collection
Take home today
NYSE: WMT 91
• Digital is a key growth channel in all categories
• Success is all about reducing degrees of friction for the customer
• We are well placed and very confident about being a multi-channel winner
Key takeaways
NYSE: WMT92
Andy Bond, Asda,President and CEO
NYSE: WMT93
Break
NYSE: WMT94
Andy Bond, Asda,President and CEO
NYSE: WMT 95
George – a case study
NYSE: WMT96
Andrew Moore, Asda,Executive Managing Director, George clothing
NYSE: WMT 97
The Inputs
ProductAvailabilityConversionTeamwork
Focusing on the Basics
NYSE: WMT 98
• Growth• Higher market share• Higher conversion
• Returns• Lower inventory
• Leverage• Lower costs
The Outputs
Focusing on the Basics
NYSE: WMT 99Source: Kantar Worldpanel (formerly TNS), Volume Share - Total Market , 52w/e data to 28th Feb 2010
2006 2010
52w/e Total Market – George Volume Share %
NYSE: WMT 100Source: Asda internal analysis, Conversion 52 wk ave.
2008 2010
14.4%
14.2%
14.0%
13.8%
13.6%
13.4%
13.2%
Weekly conversion of Asda customers shopping George
NYSE: WMT 101
Comp >Comp >MarketMarket
100 100 SuperSuper
marketsmarkets
New core New core storestoregrowthgrowth
150150LivingsLivings
BritainBritain’’s s FavouriteFavouriteRetailer Retailer across across moremore
channelschannels
No. 2 No. 2 FoodFood
No. 1 No. 1 Non FoodNon Food
World World class class
dotcomdotcom
Global leverageGlobal leverage
The New Chapter - George
NYSE: WMT 102
Comp growth - Customer pledges
NYSE: WMT 103
• First price is right price
• 90% of range below £10
• Clear good, better, best principles
• Lower promotional spend
NYSE: WMT 104
• Sourcing is key enabler
• EDLC drives EDLP
• Focus on raw materials
• Increase in direct sourcing
Sourcing
NYSE: WMT 105
• Professional supply base– Leveraging Walmart buying power
• Demanding standards
• Upgraded specifications
• 100 day guarantee
NYSE: WMT 106
• Customer focused, mono brand
• New trends with authority
• Innovation
• Speed to market
Style
NYSE: WMT 107
• New systems
• Size profiling
• New regional distribution network
• Academy
NYSE: WMT 108
• Core new stores – George as traffic driver
• George dot com
• Living stores – George 50% of sales
• Global
The New Chapter
NYSE: WMT 109
• UK online clothing & footwear worth over £4.2 billion
• Launched October 2008
• Largest store x 2+
• New range opportunities
• Goal - 10% of sales by 2013
George Dot Com
NYSE: WMT 110
• Retail Park format
• George a major footfall driver
• Customer profile – mums & kids
• New range opportunities
Living
NYSE: WMT 111
• George currently in 7 countries
• Leverage opportunities
• George as a GMC
• Process overhaul
• Brand integrity
Global
NYSE: WMT 112
• Strong growth story over last 18 months
• Drive sales through new products and new channels
• Leverage for lower cost
Key takeaways
NYSE: WMT113
Leveraging globally
Andy Bond, Asda,President and CEO
NYSE: WMT114
Leveraging Globally – Sourcing
Jon Wragg, Asda,Commercial Director – Merchandising & Sourcing
NYSE: WMT 115
Manufacturer Middlemen Retailer
Brands
Product development
Supply Chain management
Manufacturer Retailer
INDIRECT
DIRECT
Lowest Cost
Increased Control
Differentiated Product
Global Supply Chain dynamics
NYSE: WMT 116
Asda Home & Leisure direct sourcing participation %
2007 2008 2009 2013
Source: Asda
15% 16%22%
>40%
Direct sourcing opportunity
NYSE: WMT 117
Maximising Walmart leverage
Meeting specific local needs
Extending reach – new geographies/categories
Global Merchandising Centres
ASDADirect Sourcing Team
Li & Fung Global Partnership
Routes to increased Direct Sourcing
NYSE: WMT 118
Level of Complexity
Global Brands
Global Products
Global Suppliers
Raw Materials
Leverage and Standardization
GMCs - Maximising Walmart leverage
NYSE: WMT 119
Global Sourcing Productivity Loop
NYSE: WMT 120
Location of GMCs and Sourcing Hubs
GM Sourcing Hub Food Sourcing HubGMC
Emerging Consumer GMC
ApparelGMC
GeorgeGMCIPL
Home, HHL GMC, Food GMC, Packaged Goods GMC and GIC
NYSE: WMT 121
…..through country dedicated sourcing teams in China
Meeting Local Needs
NYSE: WMT 122
...through the Global breadth of Li & Fung
Consumer Research
and Strategy Product Development
Product Specs Supplier
MatrixProduction
Execution
Cost Negotiation
PO Tracking & Execution
Logistics / TransportationLab Testing
Order Fulfillment
Assortment Development
Quality Control
Assortment Definition
Seasonal Strategy
Sampling
Design
Extended Reach...
NYSE: WMT 123
• Direct sourcing – removing middlemen – a key opportunity
• GMCs will increase Walmart capability in product development and in supply chain management
• The global partnership with Li & Fung gives us the opportunity to move at greater pace in new unfamiliar markets
• Global sourcing helps drive the Walmart productivity loop
Key takeaways
NYSE: WMT124
Leveraging Globally – International Produce Limited (IPL)
Nick Scrase, IPL Managing Director
NYSE: WMT 125
• Formed in 2004
• Wholly-owned subsidiary of Asda / Walmart since 2009
• Key activity imported fruit and vegetables
• Recently extended to chilled items
• Global reach – country offices
International Produce Limited
NYSE: WMT 126
RDC StoreGrower Pre-Packer
IPL business model
Supplier/Packer
RDC
StoreGrower
Pre-Packer
Agent Exporter
Agent Importer
NYSE: WMT 127
• Control the supply chain
• Improve freshness and quality
• Develop grower / manufacturer relationships
• Develop customer advantage through points of difference
Rem
ove
Mar
gin ta
kers
Leverage scale
Consolidate volumes
and activities
IPL business model
Rem
ove
Mar
gin ta
kers
Leverage scale
Consolidate volumes
and activities
Rem
ove
Mar
gin ta
kers
Leverage scale
Consolidate volumes
and activities
Rem
ove
Mar
gin ta
kers
Leverage scale
Consolidate volumes
and activities
NYSE: WMT 128
IPL
IPL as a GMC
NYSE: WMT 129
• Millennium development goals
• Carbon reduction• Education programmes
in Kenya/South Africa• Emerging black farmers• Understanding the
impact Walmart can make
Stellenbosch University, South Africa
Sustainable Business Model
NYSE: WMT 130
New ProductAreas
Extending IPLprinciples
Serving Walmartglobally
IPL - potential
NYSE: WMT 131
IPL – key takeaways
• Model has been proven
• Infrastructure in place
• Opportunity to triple our business in 5 years
NYSE: WMT132
Leveraging Globally International Marketing Centre of Excellence
Rick Bendel, Asda,International Chief Marketing Officer
NYSE: WMT 133
• Launched June 2009
International Marketing Centre Of Excellence
Talent developmentTalent development AcademyAcademy
Best practice sharingBest practice sharing Price communicationPrice communication
Thought leadershipThought leadership Differentiation through customer insight Differentiation through customer insight
Global process leverage Global process leverage
Price checkingPrice perceptionPrice checkingPrice perception
NYSE: WMT 134
1. TV – UK & USA
2. Integrated price marketing campaign – UK & Mexico
3. Store as a marketing medium – UK & India
3 Examples
NYSE: WMT 135
EDLC = EDLP
1. TV - UK
NYSE: WMT 136
1. TV - USA
EDLC = EDLP
NYSE: WMT 137
TVIN-STORE
ONLINE PRESS
2. Integrated Marketing Campaign - UK
NYSE: WMT 138
mysupermarket - online
NYSE: WMT 139
TV - UK
NYSE: WMT 140
Press - UK
NYSE: WMT 141
Press - UK
NYSE: WMT 142
Digital - UK
NYSE: WMT 143
POS - UK
NYSE: WMT 144
Integrated campaign - Mexico
NYSE: WMT 145
TV - Mexico
NYSE: WMT 147
External signs - Mexico
NYSE: WMT 148
In-store POS - Mexico
NYSE: WMT 149
Checkout - Mexico
NYSE: WMT 150
3. In-store as a medium
NYSE: WMT 151
POS aisle
NYSE: WMT 152
POS navigation and value
NYSE: WMT 153
• Numerous messages • Numerous colours• No value cut though on ends
India – Before in-store value overhaul
NYSE: WMT 154
• 2 clear colours for value• Clear price points on end
India – After in-store value overhaul
NYSE: WMT 155
Key takeaways
• Leverage best practices globally
• Improved innovation and processes
• Strengthened price communication worldwide
NYSE: WMT156
Increasing Profitability by Leveraging Globally
Andy Bond, Asda,President and CEO
NYSE: WMT 157
• Strong performance over the last four years
• Clear and confident strategy for future growth
• Significant potential for global leverage
• Depth of leadership talent
Key takeaways
NYSE: WMT158
Q&A
NYSE: WMT 159
The final words
GrowthGrowth
LeverageLeverage
ReturnsReturns