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eCommerce Landscape

Carmela CuginiVP of Grocery, US eCommerce

AGNEDA

• eCommerce Trends

• Who Is The Consumer

• How to Participate with Walmart US eCommerce

GMV

YoYGrowth R ate (%)

U.S. eCommerce GMV, 2010 - 2022

eCommerce Sales Are Projected to Reach $700B by 2022

14% 15% 16% 16%

12%

15% 15% 14%

10%9% 9% 8%

$0B

$200B

$400B

$600B

$800B

10%

2017

F

2014

2010

2015

2011

2012

2013

2016

2018

F

2019

F

2020

F

2021

F

2022

F

Source: Forrester Research

Categories Are Coming Online at Different Rates

75%

76%

20%

3%0%

20%

40%

60%

80%

1998

2001

1999

2000

2017

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2013

2012

2014

2015

2016

Books, Music & VideosComputers & Software

Online Penetration Rates, 1998 - 2017

Source: Forrester Research

Apparel & AccessoriesFood & Drink

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Consumer Food Trends Emerging

• Minimally Processed• Artificial Ingredient

Free• Additive Free• Exclusion Diets• Organic• Non GMO• Humanely Treated

Animals• Eco-Friendly

• Simple & Easy Meals

• Immediate Consumption

• Convenient (Hand Held or Portable)

• Unique Flavors• Gourmet/ Specialty• Indulgent• Ethnic/Ethnic

Flavored

• Healthy Snacks (NEW)• Whole Food

Nutrition (NEW)• Heart Health (NEW)• Fortified (Trad.)• Weight Loss (Trad.)• Enhanced Energy

(Trad.)• Enhanced Sports

Performance (Trad.)

Food Integrity

FoodieCulture

PurposefulEating

Easy Eats

Fresh Food

• Fresh• Local

32% are heavily involved in

trend

46% (NEW Way)28% (Traditional Way)

59% 43% 27%

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EASY EXPERIENCE 48% ASSORTMENT 33% PRICE 13%

SAVING TIME 16% QUALITY ASSORTMENT (ST)(TR)

14% FAST & FREE SHIPPING (ST)

7%

SITE/APP EXPERIENCE(ST/TR)

13% DELIVERY EXPERIENCE (ST)

9% SAVING MONEY (ST) 6%

SHOPPING LISTS/SUBSCRIPTIONS*

12% BULKY ITEMS 6%

CONVENIENT STORE PICK-UP (ST)

5% RECOMMENDATIONS & INFORMATION (TR)

2%

CUSTOMER SERVICE (TR)

2% MEAL PLANNING & INSPIRATION (TR)

<2%

FRESH & LOCAL (ST)(TR) <2%

Drivers of Online Food and Beverage Retail Choice

Drive Retention Drive Acquisition

Source: GCIA analysis of Online Food Retail Choice Demand Advisor March 2018* Factors do not add up to 100% due to rounding backup

Primary Drivers of Online Choice

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Engaging with Walmart US eCommerce

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Three eCommerce Platforms For Food

Bentonville Buyer

Dotcom Content Dotcom Dotcom

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• Everyday Low Price foundation• One-stop-shop for nearly

everything• Omni-channel shopping

• Targeted to urban shoppers• More curated assortment• Designed for living in a

metro/urban area

Our Mass Sites Offer Different Value Propositions

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✓ Store within 10 milesof 90% of Americans

✓ 1.4 million associates

✓ Largest grocerin the U.S.

Omni-Channel

Walmart’s Scale Is A Competitive Advantage

CONFIDENTIAL

Jet customers over-index in large central and large fringe metro areas

The Top 30 Metro areas make up ~50% of all U.S. demand

Jet Will Compliment Walmart To Reach Urban Consumers

12

Walmart and Jet are well positioned for success

Over 110MM

Source: Walmart Internal Data and comscore

Unique web and mweb visitors on Walmart and Jet / month

Walmart/Jet owns double digit online traffic share with a strong 1st

party business and emerging marketplace business

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Specialty Category Shopping Experiences

Fundamentals

Understanding How We View Our Business Will Help Optimize Yours

Assortment

Fulfillment

Partner Effectiveness

Content

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Thank You