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Brian Cornell
President and CEO
Sam’s Club
Wal-Mart Stores, Inc. (NYSE: WMT)
18th Annual Meeting for the Investment Community
Wal-Mart Stores, Inc. (NYSE: WMT) 1
Sam’s Club
Linda Hefner
EVP, Merchandising
Todd Harbaugh
EVP, Operations
Mike Turner
SVP, Membership
John Boswell
SVP, Marketing,
Member Insights &
e-Commerce
Wal-Mart Stores, Inc. (NYSE: WMT) 2
Sam’s Club drives growth, leverage and returns
Savings Made Simple Strategic Framework
Efficient &
Engaging
Experience
Best
Choices
Member
Relationships
Talent &
Capability
Pipeline
Superior Value
& Growth
Wal-Mart Stores, Inc. (NYSE: WMT) 3
Our comp momentum is accelerating
*Guidance provided during August 16, 2011 Earnings Call
Source: Walmart internal data
Wal-Mart Stores, Inc. (NYSE: WMT) 4
Our performance is strong country-wide…
West
South
North
Wal-Mart Stores, Inc. (NYSE: WMT) 5
…and strong across major category groups
Fresh Grocery and beverages
Electronics Health and wellness Home and apparel
Freezer and cooler
Wal-Mart Stores, Inc. (NYSE: WMT) 6
There is significant headroom for growth
2011E Retail Sales
(ex Auto & Fuel) $3.3T
Food, Drug, Mass $1.9T
Club Channel
2011-’16E CAGR = 4.2%
CAGR = 5.1%
Source: Kantar Retail calendar year estimates
Wal-Mart Stores, Inc. (NYSE: WMT) 7
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
Wal-Mart Stores, Inc. (NYSE: WMT) 8
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
Wal-Mart Stores, Inc. (NYSE: WMT) 9
Our Membership trends are improving
Highest renewal
rates in a decade
Plus penetration continues to grow
More Members joining at Plus level
Source: Walmart internal data
Wal-Mart Stores, Inc. (NYSE: WMT) 10
Strategic initiatives are fueled by:
Quality
Insights
Innovation
Differentiation
Wal-Mart Stores, Inc. (NYSE: WMT) 11
Operators driving productivity and
improving Member satisfaction
Efficient &
Engaging
Experience
Best
Choices
Member
Relationships
Talent &
Capability
Pipeline
Superior Value
& Growth
Todd Harbaugh
EVP, Operations
Wal-Mart Stores, Inc. (NYSE: WMT) 12
Operational efficiency projects are
exceeding expectations
FY10 FY11 FY13 FY15
5S methodology
In-Club efficiencies
Productivity improvements
Stocking efficiencies
Staffing / scheduling
Work area design / layout
Engineered standards
Task management system
Front-end design
Performance management
EPC integration
Operations efficiencies by 2015*
6-8%
*Estimated total annual savings achieved by FY15
FY12 FY14
Wal-Mart Stores, Inc. (NYSE: WMT) 13
Improving efficiency while providing a
better Club experience
Self checkout
Sales-driven stocking
Front end
Our highest
Member service
rating ever
Wal-Mart Stores, Inc. (NYSE: WMT) 14
Clubs winning the weekend
Mon-Thurs Fri-Sun
Mon-Thurs
Fri-Sun
FY11 FY12 1H*
Comp sales excluding fuel
*As of July 31, 2011
Winning
EVERY
day
Wal-Mart Stores, Inc. (NYSE: WMT) 15
Improved relocation and remodel processes
Wal-Mart Stores, Inc. (NYSE: WMT) 16
We will win the holidays
Wal-Mart Stores, Inc. (NYSE: WMT) 17
John Boswell SVP, Marketing, Member Insights & e-Commerce
Leveraging technology and insights
Mike Turner SVP, Membership
Efficient &
Engaging
Experience
Best
Choices
Member
Relationships
Talent &
Capability
Pipeline
Superior Value
& Growth
Wal-Mart Stores, Inc. (NYSE: WMT) 18
Engaging Members based on insights
Wal-Mart Stores, Inc. (NYSE: WMT) 19
Developed competitive advantages with our
Global eCommerce partners
Substantial headroom for growth
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
Wal-Mart Stores, Inc. (NYSE: WMT) 20
Leveraging e-commerce initiatives to
engage and acquire new Members
Reaching potential new
Members with:
• Search engine marketing
• Social networking
• Targeted offers
Wal-Mart Stores, Inc. (NYSE: WMT) 21
Leveraging e-commerce initiatives to
engage and acquire new Members
Reaching potential new
Members with:
• Search engine marketing
• Social networking
• Targeted offers
Wal-Mart Stores, Inc. (NYSE: WMT) 22
mCommerce and mobile applications are
increasingly important
• Member sign-up/renewal
• Click ‘n’ Pull
• Photo
• iPad application
Wal-Mart Stores, Inc. (NYSE: WMT) 23
mCommerce and mobile applications are
increasingly important
• Member sign-up/renewal
• Click ‘n’ Pull
• Photo
• iPad application
Wal-Mart Stores, Inc. (NYSE: WMT) 24
We are reaching out to small businesses
Wal-Mart Stores, Inc. (NYSE: WMT) 25
More Members are joining at the Plus level
Key benefits:
• eValues
• Extra savings on pharmacy
• 2% on credit
• Early shopping hours
Wal-Mart Stores, Inc. (NYSE: WMT) 26
Sam’s merchants are making great choices
Linda Hefner
EVP, Merchandising
Efficient &
Engaging
Experience
Best
Choices
Member
Relationships
Talent &
Capability
Pipeline
Superior Value
& Growth
Wal-Mart Stores, Inc. (NYSE: WMT) 27
We are pleased with our growth against key
merchandise metrics
• Comp sales
• Sales per Member
• Share of wallet
• Market share
Wal-Mart Stores, Inc. (NYSE: WMT) 28
We are accelerating differentiation
according to our Members’ needs
*Price Leadership is In accordance with applicable laws
Everyday Needs Wow
Excitement Simple Solutions
• Paper
• Cleaning & laundry
• Candy
• Tobacco*
• Fuel*
• Food & beverages
• Health & wellness
• Tires
• Furniture
• Electronics
• Home
• Apparel
• Jewelry
Winning with
price leadership
Winning with
easy solutions
Winning with
more SKUs
quality & service
Winning with
innovation,
brands & service
Wal-Mart Stores, Inc. (NYSE: WMT) 29
Stronger product development and quality
testing are paying off
Key steps:
• Member needs
• Competitive benchmarking
• Innovation
• Sensory Panel testing
• Product specification tracking
Wal-Mart Stores, Inc. (NYSE: WMT) 30
We are pleased with early rollout results of
our new proprietary brands
Wal-Mart Stores, Inc. (NYSE: WMT) 31
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
Wal-Mart Stores, Inc. (NYSE: WMT) 32
Strategic Imperative:
Differentiation according to Member demand
Joint Business Planning:
• Product and packaging innovation
• Supply chain efficiencies
• Business-building investment
We are collaborating with suppliers to
further deliver on our strategic imperative
Wal-Mart Stores, Inc. (NYSE: WMT) 33
Our Members love newness
Everyday Needs Wow
Excitement Simple Solutions
Wal-Mart Stores, Inc. (NYSE: WMT) 34
We have great holiday merchandise
Wal-Mart Stores, Inc. (NYSE: WMT) 35
“Savings Made Simple” is driving results
Efficient &
Engaging
Experience
Best
Choices
Member
Relationships
Talent &
Capability
Pipeline
Superior Value
& Growth
Wal-Mart Stores, Inc. (NYSE: WMT) 36
Sales momentum is carrying through to
operating income as we leverage expenses
FY12 1H*
Growth
Leverage
Returns
Comp (4-5-4)
SG&A as a % of sales
Op income growth
4.6%
-30 bps
9.7%
Wal-Mart Stores, Inc. (NYSE: WMT) 37
Sam’s Club capital expenditure details $ in Billions
Capex Detail 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 9 8 - 10 10 - 15
Remodel Projects 65 65 - 75 65 - 75
Wal-Mart Stores, Inc. (NYSE: WMT) 38
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
Wal-Mart Stores, Inc. (NYSE: WMT) 39
Wal-Mart Stores, Inc. (NYSE: WMT) 40
Wal-Mart Stores, Inc. (NYSE: WMT)
18th Annual Meeting for the Investment Community
Wal-Mart Stores, Inc. (NYSE: WMT) 41
Wal-Mart Stores, Inc. (NYSE: WMT)
18th Annual Meeting for the Investment Community
42 Wal-Mart Stores, Inc. (NYSE: WMT)