ut case comp 11.9.15vshared
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case compTRANSCRIPT
11/7/2015
McCombs Fall Case Competition Redefining the future of grocery retail
2
About us
Alex Finley
Corporate Strategy
Bora Manellari
Finance and Reporting
Global eCommerce
3
Agenda
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2
4
3
1
2
Walmart -Overview
4 Case Competition Prompt
Walmart U.S. Strategy
3 Walmart U.S. Grocery business
4
Walmart by the numbers
260 Million 11 eCommerce websites customers per week
63 operating banners
$485 Billion in revenue
11,500+ stores around the globe
28 operating countries
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Our global footprint
* Store count as of July 31, 2015
Canada – 395
Mexico – 2,303
Brazil – 559
Chile – 388
Argentina – 108
Central America – 692
UK – 614
China – 416
India – 20
Japan – 356
Africa – 403
US – Walmart 4,588
Sam’s 651
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Our businesses
Geography: US
Net Sales: $58B
Clubs: 647
Associates: ~110K
Last year, we more than doubled
our organic portfolio
Geography: US
Net Sales: $288B
Stores: 4,516
Associates: ~1.2M
Over the past two years, we’ve hired over
80K veterans
Geography: 11 countries
Net Sales: $12.2B
We increased walmart.com assortment
60% in FY15 (to 8M items)
Geography: 27 countries
Net Sales: $141B
Stores: 6,290
Associates: ~800K
Last year, ASDA doubled its
click & collect sites
7
Our businesses
Geography: US
Net Sales: $58B
Clubs: 647
Associates: ~110K
Last year, we more than doubled
our organic portfolio
Geography: US
Net Sales: $288B
Stores: 4,516
Associates: ~1.2M
Over the past two years, we’ve hired over
80K veterans
Geography: 11 countries
Net Sales: $12.2B
We increased walmart.com assortment
60% in FY15 (to 8M items)
Geography: 27 countries
Net Sales: $141B
Stores: 6,290
Associates: ~800K
Last year, ASDA doubled its
click & collect sites
8
Walmart U.S. – our ambition
Regain share and lead in the next generation of retail
Competing on price alone is no longer enough
We must fix the core and invest for the future
Assortment
and Price Experience Access
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Improving experience by running better stores
Return to service basics
Strengthen partnerships with Associates Improve store operating model
• Added department manager
positions
• Aligning store incentives to
support service basics
• Starting wages increased
• More choice in scheduling
• Enhanced training and
development
Fast Friendly Clean In-stock
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Focus on improving Fresh and ensuring store and online
strategies best serve customers
Optimize assortment depth and breadth while helping
stores run as efficiently as possible
Utilize improved tools and capabilities to effectively deliver
EDLP with consistent execution across the business
Improving assortment
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We have a history of innovation
Discount
retail Grocery
International
eCommerce
Wholesale Omni-channel
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International
eCommerce
Wholesale Omni-channel
We have a history of innovation
Discount
retail Grocery
• Focus on fresh
• Improve private brands
• Enhance convenience
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• Assortment
• Execution
• Processes
• Supply chain
Win in Fresh
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Organics
Win in Fresh
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Private Brands
• Building customer loyalty
• Compete against hard discounters
• Complement to national brands
• Increase market penetration
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Convenience
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Online Grocery
Creating a Seamless
Shopping Experience
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Pickup
Creating a Seamless
Shopping Experience
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“Convenient”
“Fast”
“Free” “I was in and out.”
“Easy”
Pickup
Creating a Seamless Shopping Experience
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Innovating to provide access anytime, anywhere
Expanding eCommerce to
grocery
Integrating mobile into our
stores and clubs
“Reinventing” the
supercenter
11/7/2015
McCombs Fall Case Competition Redefining the future of grocery retail
22
Case challenge prompt 2015: Grocery competition
in Walmart U.S.
• Situation
‒ The grocery industry is quickly evolving in order to meet customer demands. Retailers are challenged to find ways to stay relevant and engaged with customers locally, through convenience, quality, and assortment, while maintaining a competitive pricing strategy.
• Complication:
‒ Competitors have been quickly innovating and stealing share from Walmart
‒ Walmart faces pressure from deep discounters, e.g., Aldi, as well as, retailers offering more premium and convenient options
• Question:
‒ What actions should Walmart take to better compete and remain competitive in the long-term with a local grocery competitor (e.g. HEB, Whole Foods, Randall’s, Sprouts Famers Market)? Pick one
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Thought starters:
• What is Walmart’s value proposition and brand? How can we better compete while
remaining true and reinforcing this position and brand?
• Who is our customer, and how do we increase both share of wallet and share of
market, i.e., growing with our existing base while simultaneously attracting new
customers? Be sure to fully understand our customer dynamics, it might be different
than you think.
• Why do customers choose to shop at this competitor over Walmart? (How is this
competitor creating loyalty?) How can we appeal to this customer need while keeping in
mind the above questions? Are there adjacent products/services we should consider?
• Are there any current Walmart initiatives that we should accelerate or improve upon? If
so, how? Conversely, are there any current Walmart initiatives that we should stop?
• How should we prioritize any new initiatives or programs you propose?
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Q A