Getting Smarter on Walmart International:
Actionable Insights from Global Learnings
Presented by:
Amy Koo, Senior Analyst
Promotional Webinar
April 24, 2014

Copyright © 2014 Kantar Retail. All Rights Reserved.
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No part of this material may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photography, recording, or any information storage and retrieval system now known or to be invented, without the express written permission of Kantar Retail.
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Disclaimers
The analyses and conclusions presented in this seminar represent the opinions of Kantar Retail. The views expressed do not necessarily reflect the views of the management of the retailer(s) under discussion.
This seminar is not endorsed or otherwise supported by the management of any of the companies covered during the course of the workshop or within the following slides.
© Copyright 2014 Kantar Retail

100% Walmart ownership
Canada: 389
Walmart majority ownership in a publicly traded company
United Kingdom: 574
China: 405
Includes 35% interest in
Trust-Mart
Walmart US: 4,203
Sam’s Club: 632
Japan: 374
Mexico: 2,199
India: 20
Cent. America:
Guatemala (209)
El Salvador (83)
Honduras (75)
Nicaragua (80)
Costa Rica (214)
Chile: 353
Walmart recently acquired the minority owners’ stake, for 99.7% ownership
Brazil: 544
Argentina: 104
10,842 Global Store Units
Africa:
South Africa (346)
Botswana (11)
Ghana (1)
Lesotho (3)
Malawi (2)
Mozambique (7)
Namibia (3)
Nigeria (2)
Swaziland (1)
Tanzania (1)
Uganda (1)
Zambia (1)
As reported for Jan 31, 2014
© Copyright 2014 Kantar Retail 3
Source: Company reports, Kantar Retail analysis

45%
US Total
Stores
12%
EMEA &
Canada
69%
US Total
Sales
Operating Income
82%
US Total
36%
Latin
America
7%
Asia
12%
EMEA &
Canada
13%
Latin
America
6%
Asia
18%
International
Total
© Copyright 2014 Kantar Retail 4
Source: KRiQ.com, Company documents

Performance varies widely by market
*Note: India is not part of this comparison
Source: Walmart Investor Meeting, Kantar Retail research and analysis
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Big, small, and service formats
Specialists
Food Service
Upscale Mall
Development
Financial
© Copyright 2014 Kantar Retail 6
Source: Kantar Retail research and anlaysis

Breadth of store sizes and purposes
Limited assortment convenience
Apparel and soft goods focus
Home improvement goods with construction audience
© Copyright 2014 Kantar Retail 7
Source: Kantar Retail store visits and analysis

Leadership moves again
Neil Ashe
President & CEO
Global eCommerce
David Cheesewright
President & CEO
Walmart International
Brett Biggs
CFO
Walmart International
Krish Iyer
President & CEO
Walmart India
Scott Price
President & CEO
Walmart Asia
Greg Foran
President & CEO
Walmart China
Enrique Ostalé
President & CEO
Walmart Latin America
Gian Carlo
Nucci
President & CEO
Chile
Guilherme
Loureiro
President & CEO
Brazil
Steve Dacus
President & CEO
Japan/Seiyu
Horacio
Barbeito
President & CEO
Argentina
Scott Rank
President & CEO
Walmex- Centro
America
Last update: April 2014
TBD
President & CEO
EMEA/Canada
Shelly Broader
President & CEO
Walmart Canada
Andy Clarke
President & CEO
Asda, Walmart UK
Grant Pattison*
President & CEO
Walmart RSA
/Massmart
*Guy Hayward, current COO, will replace
Pattison effective June 1, 2014
© Copyright 2014 Kantar Retail 8

Could McMillon & global emphasis shift gravity from Arkansas?
Most recently from five years leading International
Greater eCommerce presence with Pangaea
Doug McMillon
President/CEO
Walmart Stores
Source: Kantar Retail research and analysis
Neil Ashe
President/CEO
Global eCommerce
© Copyright 2014 Kantar Retail 9

EDLP Transformation
Digital & eCommerce Advancements
Global Leverage of Operational Resources
Private Brand Evolution
Focus on Sourcing
© Copyright 2014 Kantar Retail 10
Source: Kantar Retail research and analysis

Focusing on convenience for the shopper
Click and Collect will expand to over
1,000 in the next five years – including new locations located at tube stations
Delivery Pass options offer unlimited grocery delivery service by the month
Asda’s non-store grocery service enables shoppers to tailor the service to their schedules or needs. They also offer flexibility and availability to shoppers without easy access to a car.
© Copyright 2014 Kantar Retail 11
Source: Walmart Corp documents, Kantar Retail store visits and analysis

Centralized procurement to increase offerings
Mini croissant for the instore bakery
Selection of imported wines & beers
Leverage global procurement to source products
Improvement of global leverage and operations helped Walmart Japan find, source, and import products at a cheaper price more efficiently.
© Copyright 2014 Kantar Retail 12
Source: Kantar Retail store visits and analysis

Life or death questions regarding quality
Walmart China Food Scandals
2014 – Fox meat labeled as donkey meat
2008 – Baby formula scare
Recent Walmart Reaction
100 million yuan nvestment in strengthen food safety, including inspections, supply chain management, and training. Mobile labs will be deployed to stores to test foods.
Food safety is the most pressing use case for establishing an ironclad chain of custody for products. Similar demands for verification will only increase over time for sustainability, labor practices, and product origins.
© Copyright 2014 Kantar Retail 13
Source: Kantar Retail research and analysis

Creating Diversity of Audiences and Trip Missions
A Box for Every Purpose
Premium
Pricing
Supermarket
T1 – Range of Price Points to Quality
T2 – Middle Income Shoppers
Club
T1 – Bulk Shopping / Price
T2 – Small Business
Super
Market
Club
Top-up shopping trip
Hypermarket
Bulk shopping trip
Hypermart
T1 – One-Stop Shopping
T2 – Selection / Stock-Up
Discount
Discount
T1 – Top-Up Shopping at Price in Neighborhood
T2 – Weekly/Daily Needs Proximity to Home
Discounter pricing
To increase shopper relevance over time, retailers must move beyond a beyond a one-size-fits-all approach. Consider specific audiences and shopping occasions and align banners accordingly.
© Copyright 2014 Kantar Retail 14
Source: Kantar Retail research and analysis

June 4 –5 in Chicago, IL or June 18–19 in New York, NY
New Planning Coordinates: Navigating The Multichannel World
June 5 (Chicago) & June 19 (NYC)
1:15 pm – 3:00 pm
Please email events@kantarretail.com for more information.
© Copyright 2014 Kantar Retail

Contact:
Amy Koo
Senior Analyst
Amy.Koo@KantarRetail.com
T:+1 617 912 2872 www.kantarretailiQ.com
© Copyright 2014 Kantar Retail