Sam`s Club - Walmart.com

Sam’s Club
Wal-Mart Stores, Inc. (NYSE: WMT)
18th Annual Meeting for the Investment Community
Brian Cornell
President and CEO
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Wal-Mart Stores, Inc. (NYSE: WMT)
Sam’s Club
2
Todd Harbaugh
John Boswell
Mike Turner
Linda Hefner
EVP, Operations
SVP, Marketing,
Member Insights &
e-Commerce
SVP, Membership
EVP, Merchandising
Wal-Mart Stores, Inc. (NYSE: WMT)
Sam’s Club drives growth, leverage and returns
Best
Choices
Savings Made Simple
Strategic Framework
Member
Relationships
Superior Value
& Growth
Talent &
Capability
Pipeline
3
Wal-Mart Stores, Inc. (NYSE: WMT)
Efficient &
Engaging
Experience
Our comp momentum is accelerating
*Guidance provided during August 16, 2011 Earnings Call
Source: Walmart internal data
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Wal-Mart Stores, Inc. (NYSE: WMT)
Our performance is strong country-wide…
West
North
South
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Wal-Mart Stores, Inc. (NYSE: WMT)
…and strong across major category groups
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Fresh
Grocery and beverages
Electronics
Home and apparel
Wal-Mart Stores, Inc. (NYSE: WMT)
Freezer and cooler
Health and wellness
There is significant headroom for growth
2011E Retail Sales
(ex Auto & Fuel)
$3.3T
Food, Drug, Mass
$1.9T
2011-’16E CAGR = 4.2%
CAGR = 5.1%
Club
Channel
Source: Kantar Retail calendar year estimates
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Wal-Mart Stores, Inc. (NYSE: WMT)
Our Members are less affected by the weak
economy, but they want value
• Age 35-64
• Most are parents
• Larger households
• Average HHI $75K+
• College educated
Source: Walmart internal data
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Wal-Mart Stores, Inc. (NYSE: WMT)
Our Business Members need us more than
ever before
• 71% sole owner
• Average annual sales of $650K
• Employ an average of 8 people
Source: Walmart internal data
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Wal-Mart Stores, Inc. (NYSE: WMT)
Our Membership trends are improving
Plus
penetration
continues
to grow
Source: Walmart internal data
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Wal-Mart Stores, Inc. (NYSE: WMT)
More
Members
joining at
Plus level
Highest
renewal
rates in a
decade
Strategic initiatives are fueled by:
Insights
Quality
Innovation
Differentiation
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Wal-Mart Stores, Inc. (NYSE: WMT)
Operators driving productivity and
improving Member satisfaction
Best
Choices
Member
Relationships
Superior Value
& Growth
Talent &
Capability
Pipeline
12
Wal-Mart Stores, Inc. (NYSE: WMT)
Efficient &
Engaging
Experience
Todd Harbaugh
EVP, Operations
Operational efficiency projects are
exceeding expectations Front-end design
Performance management
EPC integration
Staffing / scheduling
Work area design / layout
Engineered standards
Task management system
Operations
efficiencies
by 2015*
5S methodology
In-Club efficiencies
Productivity improvements
Stocking efficiencies
FY10
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FY11
Wal-Mart Stores, Inc. (NYSE: WMT)
6-8%
*Estimated total annual savings achieved by FY15
FY12
FY13
FY14
FY15
Improving efficiency while providing a
better Club experience
Self checkout
Sales-driven
stocking
Front end
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Wal-Mart Stores, Inc. (NYSE: WMT)
Our highest
Member service
rating ever
Clubs winning the weekend
Comp sales excluding fuel
Fri-Sun
Mon-Thurs
Mon-Thurs
FY11
*As of July 31, 2011
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Wal-Mart Stores, Inc. (NYSE: WMT)
Winning
EVERY
day
Fri-Sun
FY12 1H*
Improved relocation and remodel processes
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Wal-Mart Stores, Inc. (NYSE: WMT)
We will win the holidays
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Wal-Mart Stores, Inc. (NYSE: WMT)
Leveraging technology and insights
Best
Choices
John Boswell
SVP, Marketing, Member
Insights & e-Commerce
Mike Turner
Member
Relationships
Superior Value
& Growth
SVP, Membership
Talent &
Capability
Pipeline
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Wal-Mart Stores, Inc. (NYSE: WMT)
Efficient &
Engaging
Experience
Engaging Members based on insights
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Wal-Mart Stores, Inc. (NYSE: WMT)
Developed competitive advantages with our
Global eCommerce partners
FY12 1H* performance
▲Total samsclub.com site sales
▲Delivery to home
▲Click ‘n’ Pull
▲Special orders
▲Membership: new and renewal
▲Traffic
▲Conversion
*As of July 31, 2011
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Wal-Mart Stores, Inc. (NYSE: WMT)
Substantial
headroom
for growth
Leveraging e-commerce initiatives to
engage and acquire new Members
Reaching potential new
Members with:
• Search engine marketing
• Social networking
• Targeted offers
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Wal-Mart Stores, Inc. (NYSE: WMT)
Leveraging e-commerce initiatives to
engage and acquire new Members
Reaching potential new
Members with:
• Search engine marketing
• Social networking
• Targeted offers
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Wal-Mart Stores, Inc. (NYSE: WMT)
mCommerce and mobile applications are
increasingly important
• Member sign-up/renewal
• Click ‘n’ Pull
• Photo
• iPad application
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Wal-Mart Stores, Inc. (NYSE: WMT)
mCommerce and mobile applications are
increasingly important
• Member sign-up/renewal
• Click ‘n’ Pull
• Photo
• iPad application
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Wal-Mart Stores, Inc. (NYSE: WMT)
We are reaching out to small businesses
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Wal-Mart Stores, Inc. (NYSE: WMT)
More Members are joining at the Plus level
Key benefits:
• eValues
• Extra savings on pharmacy
• 2% on credit
• Early shopping hours
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Wal-Mart Stores, Inc. (NYSE: WMT)
Sam’s merchants are making great choices
Linda Hefner
Best
Choices
Member
Relationships
Superior Value
& Growth
Talent &
Capability
Pipeline
27
Wal-Mart Stores, Inc. (NYSE: WMT)
EVP, Merchandising
Efficient &
Engaging
Experience
We are pleased with our growth against key
merchandise metrics
• Comp sales
• Sales per Member
• Share of wallet
• Market share
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Wal-Mart Stores, Inc. (NYSE: WMT)
We are accelerating differentiation
according to our Members’ needs
Everyday Needs
Winning with
price leadership
•
•
•
•
•
Paper
Cleaning & laundry
Candy
Tobacco*
Fuel*
• Tires
• Furniture
Winning with
easy solutions
Simple Solutions
*Price Leadership is In accordance with applicable laws
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Wal-Mart Stores, Inc. (NYSE: WMT)
Wow
• Food & beverages
• Health & wellness
•
•
•
•
Electronics
Home
Apparel
Jewelry
Excitement
Winning with
more SKUs
quality & service
Winning with
innovation,
brands & service
Stronger product development and quality
testing are paying off
Key steps:
• Member needs
• Competitive benchmarking
• Innovation
• Sensory Panel testing
• Product specification tracking
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Wal-Mart Stores, Inc. (NYSE: WMT)
We are pleased with early rollout results of
our new proprietary brands
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Wal-Mart Stores, Inc. (NYSE: WMT)
We have expanded our Global Sourcing
capabilities for improved quality differentiation
Transitioned to outsourced model
for general merchandise
Enjoying access to new factories
Above average sales trends
Improved quality
Reduced product returns
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Wal-Mart Stores, Inc. (NYSE: WMT)
We are collaborating with suppliers to
further deliver on our strategic imperative
Strategic Imperative:
Differentiation
according to Member
demand
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Wal-Mart Stores, Inc. (NYSE: WMT)
Joint Business Planning:
• Product and packaging
innovation
• Supply chain efficiencies
• Business-building
investment
Our Members love newness
Everyday Needs
Simple Solutions
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Wal-Mart Stores, Inc. (NYSE: WMT)
Wow
Excitement
We have great holiday merchandise
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Wal-Mart Stores, Inc. (NYSE: WMT)
“Savings Made Simple” is driving results
Best
Choices
Member
Relationships
Superior Value
& Growth
Talent &
Capability
Pipeline
36
Wal-Mart Stores, Inc. (NYSE: WMT)
Efficient &
Engaging
Experience
Sales momentum is carrying through to
operating income as we leverage expenses
FY12 1H*
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Growth
Comp (4-5-4)
Leverage
SG&A as a % of sales
Returns
Op income growth
Wal-Mart Stores, Inc. (NYSE: WMT)
4.6%
-30 bps
9.7%
Sam’s Club capital expenditure details
$ in Billions
Capex Detail
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FY11 Actual
FY12 Projection
FY13 Projection
New Clubs
$0.2
~$0.3
~$0.4
Remodels and Other
$0.5
~$0.7
~$0.6
Total
$0.7
~$1.0
~$1.0
New, Relocation and
Expansion Projects
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8 - 10
10 - 15
Remodel Projects
65
65 - 75
65 - 75
Wal-Mart Stores, Inc. (NYSE: WMT)
Sam’s Club key takeaways
• We have strong business momentum
• We are engaging Members in exciting new ways
• We have improved the in-Club experience
• We are leveraging technology and innovation
• We have improved merchandise quality and differentiation
• We will win the holidays
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Wal-Mart Stores, Inc. (NYSE: WMT)
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Wal-Mart Stores, Inc. (NYSE: WMT)
Wal-Mart Stores, Inc. (NYSE: WMT)
18th Annual Meeting for the Investment Community
41
Wal-Mart Stores, Inc. (NYSE: WMT)
Wal-Mart Stores, Inc. (NYSE: WMT)
18th Annual Meeting for the Investment Community
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Wal-Mart Stores, Inc. (NYSE: WMT)