10_Wal-Mart_2007_Year_End_Review_for_WFM

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Wal-Mart Year-End Review – 2007:

Wal-Mart Year-End Review – 2007 February, 2008

Objectives:

Wal-Mart Year-End Review Page 2 Objectives Review the scope of Wal-Mart sales & store count growth summarized from public records. Share Wal-Mart trends across categories comparing with remaining Grocery, Drug, & Mass channels. Demonstrate the many resources available for measuring Wal-Mart performance.

Key Wal-Mart Announcements in 2007:

Wal-Mart Year-End Review Page 3 Key Wal-Mart Announcements in 2007 January – First High-Efficiency Store in Kansas City February – Lee Scott Unveils “Sustainability 360” Environmental Initiative to Favor Suppliers with Green Commitment March – Rollout Of Site-To-Store Program Free Shipping to Stores on Thousands of Online Items April – Launch of the Live Better Index Measures Wal-Mart Affecting Lifestyles Across the U.S. April – Announced 400 Health Clinics in Stores During Next 3 Years September – Wal-Mart's Ad Slogan Changes After 19 Years “Save Money. Live Better," replacing "Always Low Prices” September – Announced Plan to Sell Only Concentrated Laundry Detergent by May 2008 September – Wal-Mart Expands its $4 Drug Program October – Revised Growth Plans to Include Fewer Openings November – Opened 3000th International Store

PowerPoint Presentation:

Wal-Mart Year-End Review Page 4 Store Count & Financial Review Public Information Available from Wal-Mart Web Sites, SEC Filings, & TDLinx

U.S. Store Format Profile:

Wal-Mart Year-End Review Page 5 U.S. Store Format Profile Wal-Mart Supercenters Full Grocery Lines & General Merchandise 2,435 Units in the U.S.* Most Operate 24 Hours Average 187,000 Square Feet 350 or More Associates Per Store Carry About 142,000 Different Items Wal-Mart Supercenters First Opened in 1988 *Source: TDLinx DEC 07

U.S. Store Format Profile:

Wal-Mart Year-End Review Page 6 U.S. Store Format Profile Wal-Mart Discount Stores Mass Merchandise Format with Limited Grocery 979 Units in the U.S.* Average 107,000 Square Feet About 225 Associates Per Store Carry About 120,000 Different Items First Wal-Mart Discount Opened in 1962 *Source: TDLinx DEC 07

U.S. Store Format Profile:

Wal-Mart Year-End Review Page 7 U.S. Store Format Profile Sam’s Clubs Members-Only Warehouse Club Format Focused on Small Businesses 586 Units in the U.S.* Average 132,000 Square Feet About 160-175 Associates Per Store Carry About 5,500 Different Items First Sam’s Clubs Opened in 1983 Requires Annual Membership Fee $35 annually for businesses, $40 for individuals *Source: TDLinx DEC 07

U.S. Store Format Profile:

Wal-Mart Year-End Review Page 8 U.S. Store Format Profile Neighborhood Markets Smaller Format Focused on Convenient Shopping for Grocery, HBA, and some General Merchandise 128 Units in the U.S.* Average 42,000 Square Feet Much Smaller Than Other Wal-Mart Formats About 95 Associates Per Store Carry About 29,000 Different Items First Neighborhood Markets Opened in 1998 *Source: TDLinx DEC 07

Marketside – Wal-Mart’s Newest Banner:

Wal-Mart Year-End Review Page 9 Marketside – Wal-Mart’s Newest Banner First Stores to Open This Summer Rumored Locations of 4 Stores Near Phoenix Arizona Gilbert, Tempe, Mesa, and Chandler, Arizona Some Near Tesco’s Fresh & Easy Locations 15,000 Square Feet of Selling Space Half the Size of a Neighborhood Market Recent Trademarked Names for Possible Private Label “City Thyme” and “Field & Vine” This new banner allows Wal-Mart to attract upscale shoppers without the Wal-Mart name or the “Big Box” image.

Wal-Mart Store Counts:

Wal-Mart Year-End Review Page 10 Wal-Mart Store Counts U.S. Supercenters 2,435 Stores U.S. Discount Stores 979 Stores Sam’s Clubs 586 Stores Neighborhood Markets 128 Stores Total U.S. Stores*: 4,128 Stores International 3,111 Stores Total Units: 7,239 Stores International Source: www.walmartstores.com In 2007, Wal-Mart exceeded 4,000 U.S. stores for the first time ever. *Source: TDLinx DEC 07

U.S. States With the Most Wal-Mart Stores:

Wal-Mart Year-End Review Page 11 U.S. States With the Most Wal-Mart Stores Number State of Stores Texas 439 Florida 251 California 208 Ohio 172 Illinois 169 Georgia 150 Pennsylvania 145 North Carolina 144 Missouri 132 Tennessee 127 Texas Stores: 289 Supercenters 72 Sam’s Clubs 46 Discount Stores 32 Neighborhood Markets Plus 11 Distribution Centers WFM/WO- Compete with 1095 WMT stores, including Sam’s and N Mkts *Source: TDLinx DEC 07

Wal-Mart Store Count Growth:

Wal-Mart Year-End Review Page 12 Wal-Mart Store Count Growth Traditional discount stores continue to be replaced by Supercenters. Source: www.walmartstores.com

Wal-Mart International:

Wal-Mart Year-End Review Page 13 Wal-Mart International Market Retail Units Date of Entry Mexico 1,023 November 1991 Japan 394 March 2002 United Kingdom 352 July 1999 Brazil 313 May 1995 Canada 305 November 1994 China* 202 August 1996 Costa Rica 149 September 2005 Guatemala 145 September 2005 El Salvador 70 September 2005 Puerto Rico 54 August 1992 Honduras 47 September 2005 Nicaragua 46 September 2005 Argentina 21 November 1995 *Includes a 35% interest in Trust-Mart, which operates 101 stores in China. 3,121 International Units >620,000 International Associates 49 Million International Customers Weekly Source: Wal-Mart’s International Operational Data Sheet - February 2008

Wal-Mart’s International Banners:

Wal-Mart Year-End Review Page 14 Wal-Mart’s International Banners

Wal-Mart Fiscal Year Sales Ending 1/31/08:

Wal-Mart Year-End Review Page 15 Wal-Mart Fiscal Year Sales Ending 1/31/08 52-Weeks Ending Percent Net Sales by Division 1/31/08 1/31/07 Change Wal-Mart Stores Div $239.5B $226.3B +5.8% Sam's Club Div $44.4B $41.6B +6.7% International Div $90.6B $77.1B +17.5% Total Company $374.5B $345.0B +8.6% Change Vs. Year Ago Comparable 52-Weeks Ending Store Sales 1/31/08 1/31/07 Wal-Mart Stores +1.0% +1.9% Sam's Club +4.2% +2.9% Total U.S. +1.4% +2.1% Source: Sales Reported by Wal-Mart on 2/19/08, Fiscal year runs 2/1-1/31 Excludes Gas Sales Same-store sales remain a concern.

24 Years of Wal-Mart Sales:

Wal-Mart Year-End Review Page 16 24 Years of Wal-Mart Sales During the Recession of the early 90’s, Wal-Mart was still growing at 20-35%. Corp Wal-Mart Sales: $375 B Corp WM % Chg: +8.6% Source: Sales Reported by Wal-Mart on 2/19/08, Fiscal year runs 2/1-1/31 % Change vs. Year Ago Fiscal Year Sales

PowerPoint Presentation:

Wal-Mart Year-End Review Page 17 Overview Using Nielsen’s Wal-Mart Channel Reporting Wal-Mart Discount & Supercenter Sales

Nielsen Categories Reported:

Wal-Mart Year-End Review Page 18 Nielsen Categories Reported About half of Wal-Mart sales are in categories where food & drug retailers compete head-on. By focusing on key categories, we can compare Wal-Mart with food & drug retailers. Although panelists record all purchases, categories like clothes, hardware, jewelry, toys, pharmacy, etc. are not reported . Dry Grocery General Merchandise HBA/HBC Non-Food Grocery Perishable Alcohol Not Reported: Clothing Hardware Toys On-Line Jewelry Sporting Goods Other Misc. Recorded By Homescan Panelists Relevant Categories Reported $114 Billion Reported by Nielsen 48% of Revenue from Wal-Mart Stores Division

Wal-Mart Top Line Sales:

Wal-Mart Year-End Review Page 19 Wal-Mart Top Line Sales Total Wal-Mart Sales Reported by Nielsen’s Wal-Mart Channel 52-Week $ Chg Vs. Share of Dollars Year Ago Wal-Mart Total WM Disc & SC $114 Billion +8.1% 100% Total Supercenters $94 Billion +13.4% 82% Total WM Discount $21 Billion -10.9% 18% Source: Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07 Wal-Mart Discount continues to decline as stores are converted to Supercenters.

Wal-Mart Dollar Sales Growth:

Wal-Mart Year-End Review Page 20 Wal-Mart Dollar Sales Growth +18.0% Source: Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07 +11.0% +11.1% +4.1% +5.3% +8.0% +8.1% +10.9% -1.6% Wal-Mart growth is clearly strongest in the west.

Wal-Mart Shares by Department:

Wal-Mart Year-End Review Page 21 Wal-Mart Shares by Department Total Wal-Mart Vs. Food/Drug/Mass Channels (FDM) 52-Week Chg Vs WM Share Dollars Year Ago of FDM All Departments $114.3 Billion +8.1% 24.1% Dry Grocery $37.7 Billion +11.4% 21.3% Perishable (UPC-coded) $22.6 Billion +18.1% 18.4% HBC/HBA $17.7 Billion +2.8% 29.7% General Merchandise* $17.6 Billion -0.0% 46.3% Non-Food Grocery $16.8 Billion +4.6% 30.2% Alcoholic Beverages $1.5 Billion +8.1% 7.5% *Includes only General Merchandise categories reported by Nielsen Source: Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07

Top Food & Beverage Categories at Wal-Mart:

Wal-Mart Year-End Review Page 22 Wal-Mart WM Share Food & Bev Categories Dollar Sales of F/D/M* Pet Food $3.9 Billion 42% Carbonated Beverages $3.4 Billion 19% Bread & Baked Goods $3.4 Billion 20% Snacks $3.0 Billion 22% Packaged Meat $2.6 Billion 20% Milk $2.5 Billion 16% Candy $2.5 Billion 25% Prepared Foods - Frozen $2.3 Billion 22% Fresh Produce $2.2 Billion 15% Cheese $2.0 Billion 18% Top Food & Beverage Categories at Wal-Mart Source: Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07 *FDM includes Food/Drug/Mass channels Wal-Mart is a major player in Pet Food.

Top Non-Food Categories at Wal-Mart:

Wal-Mart Year-End Review Page 23 Wal-Mart WM Share Non-Food Categories Dollar Sales of F/D/M Computer/Electronic Prods* $4.7 Billion 59% Paper Products $3.9 Billion 28% Office/School Supplies $2.7 Billion 50% Medications/Remedies $2.6 Billion 26% Housewares/Appliances $2.6 Billion 42% Hair Care $2.2 Billion 33% Detergents $2.2 Billion 32% Vitamins $1.7 Billion 33% Pet Care $1.6 Billion 47% Skin Care Preparations $1.5 Billion 32% Top Non-Food Categories at Wal-Mart Source: Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07 *Computer/Electronics includes select items often found in grocery and drug stores. Most volume is from DVD sales. Wal-Mart continues to be more dominant in non-food categories.

Top Growth Categories at Wal-Mart:

Wal-Mart Year-End Review Page 24 Top Growth Categories at Wal-Mart Categories $ Volume % Chg Eggs-Fresh $573 Million +57% Wine $412 Million +47% Soft Drinks – Non Carb $491 Million +33% Liquor $94 Million +28% Flour $96 Million +27% Tea (Mix & Liquid) $540 Million +26% Pizza/Snacks-Frozen $964 Million +24% Yogurt $729 Million +24% Unprep Meat/Seafood-Frz $980 Million +24% Vegetables & Grains-Dry $174 Million +24% Milk $2,498 Million +23% Source: Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07, Excludes some smaller categories. Egg sales grew across channels due to higher prices.

Best-Developed Food Categories at Wal-Mart:

Wal-Mart Year-End Review Page 25 Best-Developed Food Categories at Wal-Mart Wal-Mart WM Shr $ Volume of F-D-M Fresh Meat (UPC-Coded) $1,268 Million 45% Pet Food $3,931 Million 42% Soft Drinks - Non Carb $491 Million 31% Breakfast Foods $844 Million 27% Breakfast Foods - Frozen $491 Million 26% Candy $2,474 Million 25% Unprep Meat/Seafood - Frzn $980 Million 25% Gum $400 Million 25% Sugar/Sugar Substitutes $451 Million 24% Prepared Foods-Dry Mixes $1,077 Million 23% Source: Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07 FDM includes Food/Drug/Mass channels Wal-Mart share of Food/Drug/Mass is 19.3% across food & beverage categories. Most grocers focus more on random weight meat.

Categories with Highest PL Share at Wal-Mart:

Wal-Mart Year-End Review Page 26 Categories with Highest PL Share at Wal-Mart WM Private Label Share of Dollar Sales Category PL Milk $1,773 Million 71% PL Sugar/Sugar Substitutes $280 Million 62% PL Unprep Meat/Seafood - Frzn $501 Million 51% PL Cot Chs/Sour Crm/Topping $151 Million 41% PL Dessert/Fruit/Tops - Frzn $75 Million 40% PL Fruit - Canned $123 Million 39% PL Vegetables & Grains - Dry $66 Million 38% PL Shortening/Oil $177 Million 36% PL Cheese $725 Million 36% PL Juices/Drinks-Frzn $40 Million 36% Source: Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07 Wal-Mart PL share is 15.3% across all Nielsen categories.

Categories Where Wal-Mart Private Label Out-Performs Grocery Channel:

Wal-Mart Year-End Review Page 27 Categories Where Wal-Mart Private Label Out-Performs Grocery Channel Share of Category Grocery Share Wal-Mart Channel Gap PL Soft Drinks - Non Carb 28.6% 8.0% +21 Pts. PL Vitamins 35.2% 16.1% +19 Pts. PL Candles/Incense & Acces 22.7% 3.9% +19 Pts. PL Sugar/Sugar Substitutes 62.2% 43.8% +18 Pts. PL Snacks/Spreads/Dip-Dairy 30.9% 14.2% +17 Pts. PL Lawn And Garden 22.2% 9.6% +13 Pts. PL Bottled Water 33.7% 21.2% +13 Pts. PL Seafood-Canned 22.3% 10.4% +12 Pts. PL Disposable Diapers 27.9% 16.0% +12 Pts. PL Pkg'd Milks & Modifiers 28.4% 16.9% +12 Pts. Source: Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07 Wal-Mart PL share can be a benchmark for other retailers.

Wal-Mart’s Exclusive Brands:

Wal-Mart Year-End Review Page 28 Wal-Mart’s Exclusive Brands Food/Beverage/HBC Brands (not available online) Great Value – Food & Beverage Sam’s Choice – Premium Food & Beverage Maxximum Nutrition – Premium Pet Food Ol’ Roy – Dog Food Special Kitty – Cat Food Sunny Meadow – Eggs Equate – HBC Spring Valley – Vitamins Non-Food Ever Active – Batteries Durabrand – Electronics HomeTrends – Furniture & Appliances Kid Connection – Toys Mainstays – Home Fashion Ozark Trail – Outdoor Equipment Popular Mechanics – Tools SuperTech - Automotive White Cloud – Toilet Tissue & Diapers (bought from P&G) Over 15 Apparel brands including… George Faded Glory White Stag Mary Kate & Ashley How many of Wal-Mart’s own private label brands can you name? Metro 7 No Boundaries (or NoBo) Simply Basic Athletic Works Life – Underwear Puritan Simply Basic Get it Together – Furniture Hometrends – Home Products Everstart – Car Batteries Holiday Time – Seasonal Items ilo – Electronics ReliOn – Medical Test Kits SuperTech – Motor Oil

PowerPoint Presentation:

Wal-Mart Year-End Review Page 29 Understanding Wal-Mart From Multiple Perspectives Insights from Other Nielsen Resources

Wal-Mart Corp Share of All-Outlet Sales:

Wal-Mart Year-End Review Page 30 Wal-Mart Corp Share of All-Outlet Sales Source: Homescan Channel Facts, CY’07 Includes Sam’s Club & Neighborhood Markets Wal-Mart’s share varies from 5% in New York to 44% in Oklahoma City.

Demographic Profile: Household Income:

Wal-Mart Year-End Review Page 31 Target & Sam’s attract more high-income households than Wal-Mart Discount & Supercenters. Distribution of Dollar Sales All Wal-Mart Wal-Mart Neighborhood Sam's Outlets Supers Discount Markets Club Target $100K+ 23% 13% 16% 15% 29% 30% $70K-99K 18% 15% 18% 15% 22% 22% $50K-69K 17% 19% 17% 16% 19% 18% $40K-49K 10% 12% 10% 16% 9% 9% $30K-39K 10% 13% 12% 13% 9% 8% $20K-29K 10% 14% 13% 11% 7% 7% <$20K 12% 15% 14% 14% 6% 6% Source: Homescan Account Shopper Profiler, CY’07 Demographic Profile: Household Income

Demographic Profile: Kids & Household Size:

Wal-Mart Year-End Review Page 32 Demographic Profile: Kids & Household Size Compared with Wal-Mart, Target shoppers are larger families with younger kids. Distribution of Dollar Sales All Wal-Mart Wal-Mart Neighborhood Sam's Outlets Supers Discount Markets Club Target No Kids < 18 60% 54% 51% 57% 62% 45% Any Kids < 18 40% 46% 49% 43% 38% 55% Any Kids < 6 15% 18% 18% 17% 14% 26% Any Kids 6-12 21% 26% 27% 24% 20% 29% Any Kids 13-17 19% 22% 24% 17% 20% 20% 1 Member 17% 14% 14% 17% 12% 13% 2 Members 34% 33% 29% 34% 38% 27% 3-4 Members 35% 38% 39% 32% 36% 43% 5+ Members 13% 15% 19% 16% 14% 17% Source: Homescan Account Shopper Profiler, CY’07

Demographic Profile: Household Ethnicity:

Wal-Mart Year-End Review Page 33 Demographic Profile: Household Ethnicity Source: Homescan Account Shopper Profiler, CY’07 Wal-Mart Supercenters are under-developed with Hispanic households. Distribution of Dollar Sales All Wal-Mart Wal-Mart Neighborhood Sam's Outlets Supers Discount Markets Club Target Caucasians 78% 83% 76% 72% 80% 75% Non-Cauc 22% 17% 24% 28% 20% 25% African Amer 11% 10% 10% 16% 10% 10% Asian* 3% 1% 3% 5% 2% 4% Other Race 8% 6% 11% 8% 8% 11% Hispanic* 11% 9% 14% 12% 12% 16% *Acculturated Hispanics & Asian Americans

Rising Gas Prices May Help Wal-Mart Sales Nielsen Homescan survey measures household attitudes on higher gas prices:

Wal-Mart Year-End Review Page 34 Impact higher gas prices had on driving & spending habits? Check all Jun/Jul ‘05 Jun/Jul ‘06 Jun ‘07 Dec ‘07 Combine errands/trips 61% 68% 68% 70% Eat out less 31% 39% 38% 41% Do more things @ home 30% 39% 39% 39% Reduce spending small degree 26% 33% 29% 31% Shop more @ Supercenters 22% 26% 23% 27% Switch to lower price gas stations 30% 31% 26% 26% Use more coupons 20% 24% 21% 25% Buy less expensive grocery brands 17% 22% 19% 23% Reduce spending great degree 10% 15% 16% 18% Use lower grade gas 16% 18% 14% 15% Nielsen Homescan Surveys Rising Gas Prices May Help Wal-Mart Sales Nielsen Homescan survey measures household attitudes on higher gas prices

Health-Conscious Consumers Are Less Likely to Shop at Wal-Mart Vs. Other Retailers:

Wal-Mart Year-End Review Page 35 Health-Conscious Consumers Are Less Likely to Shop at Wal-Mart Vs. Other Retailers Consumer Segments Retailers I Am Who I Am Young & Reck-less Main-tenance Mode Dieting DIY Single Self Starters Program Partners Health Idealists Costco 71 75 114 69 71 143 156 Safeway Corp 79 81 117 89 85 136 120 Kroger Grocery Corp 100 95 105 101 93 115 95 Winn-Dixie 115 92 106 118 126 92 61 Wal-Mart Banner 116 116 95 113 102 83 74 7 Eleven 126 172 103 86 139 59 48 Index to Total Food & Beverage $ Development ( excluding Alcoholic Beverages) Source: Nielsen Health & Wellness: Diet & Fitness Segmentation Read as: Wal-Mart $ sales are 16% greater than industry among less health-conscious consumers. Least Health Conscious Most Health Conscious

Top Ad Spending Among Retailers:

Wal-Mart Year-End Review Page 36 Top Ad Spending Among Retailers Some might consider $498 million in advertising modest given Wal-Mart’s size. Source: Nielsen Monitor-Plus December 2006-November 2007

Less than 7% of Wal-Mart Advertising is Focused Directly on its Grocery/Food Business.:

Wal-Mart Year-End Review Page 37 Less than 7% of Wal-Mart Advertising is Focused Directly on its Grocery/Food Business. Source: Nielsen Monitor-Plus December 2006 – November 2007 Category/Department Ad Dollars % Share Store-General $303,724,369 61.0% Computer/Electronics $108,357,297 21.8% Grocery/Food $34,545,759 6.9% Apparel $22,352,916 4.5% Toys/Sports $20,041,714 4.0% Home Furnishings $5,025,999 1.0% Website $2,022,611 0.4% Medicines/Remedies $563,489 0.1% Jewelry $312,846 0.1% Toiletries $13,721 0.003% Other $774,967 0.2% TOTAL $497,735,688 100.0%

Wal-Mart Advertising Across Media:

Wal-Mart Year-End Review Page 38 Source: Nielsen Monitor-Plus December 2006-November 2007 Wal-Mart Advertising Across Media Wal-Mart spends $498 million on advertising. 94% on Wal-Mart Stores 6% on Sam’s Club

Wal-Mart and TV Product Placement When Wal-Mart is Seen or Mentioned in U.S. TV Programming:

Wal-Mart Year-End Review Page 39 Wal-Mart and TV Product Placement When Wal-Mart is Seen or Mentioned in U.S. TV Programming Top Dept/Disc Stores in U.S. TV Number of Retail Chain Occurrences Macy's 910 Sears 267 Target 224 Wal-Mart 184 Neiman Marcus 117 Barneys New York 78 Filene's Basement 63 Bloomingdales 61 Ross Stores 58 Kmart 54 Source: Place*Views, Nielsen Product Placement December 2006-November 200 Prime time entertainment programming on 6 broadcast networks (ABC, CBS, CW, FOX, MNT, and NBC) Prime time entertainment programming on 5 cable networks (A&E, Bravo, HGTV, MTV, TLC) Top TV Shows for WM Product Placement Program Network Fast Cars & Superstars ABC Kids By The Dozen TLC CW Now CW Band In A Bubble MTV Intervention A&E Surviving Sextuplets & Twins TLC

Changing Record Sales Will Impact Mass Merchandisers like Wal-Mart:

Wal-Mart Year-End Review Page 40 Changing Record Sales Will Impact Mass Merchandisers like Wal-Mart % Chg 2007 Share CD Unit Sales in the U.S. Vs Ygo Share Pt Chg Total Album Sales -15% 100.0% +0.0 Pts. Mass/Club/Wal-Mart -16% 40.4% -0.2 Pts. Record/Electronics Chains -26% 35.7% -5.3 Pts. Non-Trad*/Mail-Order +26% 17.6% +5.7 Pts. Independent Record Stores -18% 6.2% -0.2 Pts. *Includes digital album downloads, but not individual track sales . Source: Nielsen SoundScan, 2007 Calendar Year Club/Mass Merch Retailers Now Sell More CD’s Than Traditional Record & Electronics Chains

Organics Buyers Shop Wal-Mart Supercenters:

Wal-Mart Year-End Review Page 41 Organics Buyers Shop Wal-Mart Supercenters Wal-Mart Supercenter is the top grocery store shopped by organics consumers* According to a recent study by Scarborough Research, 29% of organics consumers have shopped Wal-Mart within the past week HOWEVER: This is due to Wal-Mart’s broad market penetration. Organics Consumers are actually 21% less likely to shop Wal-Mart. Key retailers for organics: Whole Foods & Trader Joe’s The West Coast is a stronghold for organics consumers *Organics consumers: Adults who used any organic food product during the past month

PowerPoint Presentation:

Wal-Mart Year-End Review Page 42 Wal-Mart Innovation How Wal-Mart Stays Hungry

Not Afraid to Test, Change, Adapt in 2007:

Wal-Mart Year-End Review Page 43 Not Afraid to Test, Change, Adapt in 2007 Re-Designing Neighborhood Markets High-Level Management Changes New Ad Agency New Slogan: “Save Money, Live Better” Site-To-Store Program Ships Online Purchases to Stores Exclusive CD & DVD Offerings Trying, Then Canceling Online Movie Downloads Converting Liquid Laundry Detergent to 2X Concentrate High-Efficiency Store Designs Expanded Organic Selection New Marketside Banner

Wal-Mart: Company of the Future:

Wal-Mart Year-End Review Page 44 Wal-Mart: Company of the Future On 1/23/08, Lee Scott presented a vision of Wal-Mart’s future at a meeting of store managers. Goals in 3 Key Areas: Making Quality Health Care More Affordable & Accessible Reducing Energy Costs for Customers Ethical and environmentally Responsible Sourcing around the world, including China Review of Wal-Mart’s Global Innovation Projects For details: http://www.walmartfacts.com/articles/5623.aspx

Some of Wal-Mart’s Sustainability Efforts:

Wal-Mart Year-End Review Page 45 Some of Wal-Mart’s Sustainability Efforts Sustainability 360 program launched by Lee Scott on 2/1/07 Partnered with Carbon Disclosure Project to make supply chain more energy efficient Purchased solar power to run 22 stores Opened 3 High-Efficiency Supercenters using 20% less energy than a typical Supercenter Will sell only 2X concentrated liquid laundry detergent in all U.S. by May, 2008 On 10/3/07, achieved sales goal of 100 million compact fluorescent light bulbs (CFL’s) Sustainability Scorecards For Vendors Many of Wal-Mart’s sustainability efforts will lead to savings for Wal-Mart and its suppliers.

Sustainability Scorecards:

Wal-Mart Year-End Review Page 46 Sustainability Scorecards Scorecards made available to buyers on Feb 1, 2008 First Announced November 1 st , 2006 Goal: Reducing overall packaging by 5% by 2013 Sustainability Scorecards as of January 30, 2008… 97,000 products 6,371 vendors Key Metrics: greenhouse gas emissions product-to-package ratio space utilization innovation amount of renewable energy used in packaging production emissions related to the distance packaging materials are transported Wal-Mart: “Buyers may show preference to those suppliers who have demonstrated a commitment to producing more sustainable packaging”

Wal-Mart’s In-Store TV Network:

Wal-Mart Year-End Review Page 47 Wal-Mart’s In-Store TV Network In over 3,150 Wal-Mart stores & 580 Sam’s Clubs Targeted Messaging for Key Departments Grocery Channel – 3,000 Stores, 44 Million Viewers* Health & Beauty Channel – 3,000 Stores, 36 Million Viewers* LifeStyle Channel – 3,000 Stores, 27 Million Viewers* Electronics Channel – 3,150 Stores, 64 Million Viewers* Fresh Food Channel – in 2,150 Supercenters, 38 Million Viewers* Checkout Channel – 600 stores, 19 of the country’s top 20 DMAs Content features news headlines, entertainment news, advertising & information on new items *Source: Nielsen Media Research

Key Wal-Mart Web Sites:

Wal-Mart Year-End Review Page 48 Key Wal-Mart Web Sites www.walmartfacts.com Key Facts Including Store Counts For Each State www.walmartstores.com Corporate Site Main Page with Store Openings and Financials www.walmart.com Online Shopping (No Grocery) www.wal-martrealty.com Real Estate Site Includes New Stores & Closings www.walmarttvnetwork.com Information on Wal-Mart’s In-Store TV Network www.livebetterindex.com Wal-Mart’s site for attitudes & behavior on sustainability

What We Covered:

Wal-Mart Year-End Review Page 49 What We Covered Wal-Mart Retail Banner Profiles Wal-Mart Store Counts & Trends Wal-Mart Year-End Financials Sales & Trends by Category & Geography Wal-Mart Private Label Overview Wal-Mart Key Demographics Wal-Mart Advertising Wal-Mart Innovation & New Initiatives Wal-Mart Sustainability

Additional Nielsen Solutions for Wal-Mart Insights:

Wal-Mart Year-End Review Page 50 Additional Nielsen Solutions for Wal-Mart Insights Nielsen’s Wal-Mart Channel Strategic Planner Homescan/Spectra Channel Facts Account Shopper Profiler Panelist Surveys TDLinx Progressive Grocer Magazine Nielsen Monitor Plus Place*Views, Nielsen Product Placement Nielsen/NetRatings Nielsen Media Research Nielsen SoundScan Scarborough Research Nielsen Strategic Media Research Nielsen has a wide variety of tools to measure Wal-Mart’s impact on U.S. retailing

PowerPoint Presentation:

Wal-Mart Year-End Review Page 51 Questions?

PowerPoint Presentation:

Wal-Mart Year-End Review Page 52 Confidential & Proprietary • Copyright © 2007 The Nielsen Company Thank you

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