October The Walmart Canada Business

Transcription

1 October 2014 The Walmart Canada Business

2 Walmart Canada History

3 Our history 1960s to early 1990s The origins of Walmart Canada can be traced back to At that time, the F.W. Woolworth Company Ltd. was opening its first Canadian Woolco department store in Windsor, Ontario. Woolco stores were also opening in the U.S. at the time Walmart Canada was established in 1994 when Walmart Stores Inc., acquired the 122-store Woolco division of Woolworth Canada. Mid 1990s to mid 2000s Walmart Canada continues to grow its business and deliver on its promise of providing Canadians with everyday low prices. In 1996 Strategy Magazine rated Walmart Canada best in customer service and value for money. 3 NYSE: WMT

4 Our history 2006 Walmart Canada opens its first supercentres in Stouffville, London and Ancaster, Ontario, offering fresh food combined with general merchandise for the broadest selection of products under one roof and all at Everyday Low Prices to 2009 Walmart Canada s corporate culture is ranked among the 10 most admired corporate cultures in Canada by Waterstone Human Capital Inc to 2014 Walmart Canada Bank, a subsidiary of Wal- Mart Canada Corp., announced the launch of the Walmart Rewards MasterCard. In 2014, Walmart celebrated 20 years of helping Canadians save money so they can live better. 4 NYSE: WMT

5 Business Strategy

6 A strategy built around Canadians Strong Core Business Unbeatable Prices One Stop Shop Customer Experience Financial Services #1 Retailer in Canada Supercentre Rollout E-commerce New Format We sell the products customers want at unbeatable prices Develop Talent Engaged Associates Leaders in Compliance & CSR Buy for Less Inventory Reduction Operate and Move for Less Great Place to Work Better, Simpler, Cheaper, Faster 6 NYSE: WMT

7 Our Mission 7 NYSE: WMT

8 Canada s most shopped retailer 86% of Canadians shopped at Walmart in the last year* More than 100,000 SKUs Store of the community Dominant seasonal retailer Specialty services/licensees * Source: Nielsen Homescan Total Expenditures. 52W to May 3, NYSE: WMT

9 Canada s price leader We check and compare 140,000 prices at hundreds of stores under multiple banners across the country on a weekly basis Compared to conventional grocers, our price comparison research shows customers save on average between 7 and 20 per cent on a typical grocery basket by shopping at Walmart Source: Crossmark, unweighted, FYTD, as at July 11, NYSE: WMT

10 Business Overview & Financial Information

11 Canada at a glance 35 million people Median family income C$79,000 50% have post-secondary education (trade certificates, college diplomas and university degrees) 81% live in urban areas 70% live 60 miles from U.S. border 20% immigrants (46% Toronto) Top industries: financial services, manufacturing, construction and retail Data source from: Statistics Canada, Employment and Social Development Canada 11 NYSE: WMT

12 Walmart Canada today 391 stores and growing* 129 discount stores 262 supercentres 95,000+ associates 8.4m customers / week Calgary/Balzac, AB Mississauga, ON Cornwall, ON 2m customers / week visit walmart.ca 3 Distribution hubs Mississauga, ON Cornwall, ON Calgary, AB * Store count as at October 31, NYSE: WMT

13 Store count growth FY Supercentres Discount Stores *Projected 13 NYSE: WMT

14 Square footage growth 60 million *Projected 14 NYSE: WMT

15 Market share growth $ Share of Market (Nielsen Coverage - Food (X Fresh), Consumables, Health & Wellness) Walmart Canada continues to increase market share in a hyper-competitive Canadian retail market Source: Nielsen MarketTrack, Wal-Mart Databank, National All Channels, Total Nielsen Tracked Excluding Fresh, R52 weeks, Copyright 2014, The Nielsen Company 15 NYSE: WMT

16 Market share growth fresh food Fresh $ Share of Market Walmart Canada s share of Fresh has more than doubled over the past 2½ years Source: Nielsen MarketTrack, Wal-Mart Databank, National All Channels, Total Fresh, R52 weeks, Copyright 2014, The Nielsen Company 16 NYSE: WMT

17 Sales Mix Food* General Merchandise 63% 37% * includes health & wellness and non-edible consumables 17 NYSE: WMT

18 Leverage framework We drive the Walmart productivity loop in Canada the same way we do in the U.S. and globally. Our strong, market leading sales growth gives us the scale and momentum to operate, buy and sell for less allowing us to expand our price gap vs. competitors, saving Canadians money driving even stronger sales growth. 18 NYSE: WMT

19 Importance of Private Brands Private Brands play a clear role for the business built to drive three key areas DRIVES A POINT OF DIFFERENCE IMPROVE VALUE PERCEPTION TO WIN THE WEEKLY GROCERY TRIP ENHANCE PROFITABILITY When there is potential opportunity in the business for a private brand the brand team is brought in to investigate feasibility 19 NYSE: WMT

20 Importance of Private Brands Canadian retail has one of the most developed private brands markets in the world and Walmart Canada competes across 6 SBUs with the best of the best Best (equal to, or better than national brand) Food & Consumables Health & Wellness Hardlines Home Electronics Better Good/ OPP Seasonal Labels 20 NYSE: WMT

21 Our Customers

22 Our customer Multicultural Well-educated Socially progressive Value-conscious Changing face of Canada Customer insights Communication mix 22 NYSE: WMT

23 Accelerating E-commerce

24 Canadians online Canada ranks 5 th globally in expected retail e-commerce sales growth, behind China, India, Mexico and Russia Double-digit gains are predicted through 2017 Retails e-commerce sales in Canada represented 4.5% of total retail in 2013 Source: emarketer, Canada Ecommerce: Pedal to the Metail, NYSE: WMT

25 A multi-channel leader Shop Walmart at home Shop Walmart while you re out and about Shop Walmart stores for products at unbeatable prices 25 NYSE: WMT

26 Top 5 categories on Walmart.ca Electronics Home Baby Outdoor living Appliances 26 NYSE: WMT

27 What s next? Continue to expand merchandise offering Fresh grocery delivery and in-store pickup (trials to some areas of Canada) Lists and registries to help customers organize their lives Marketplace to grow our assortment and offer sellers a new way to meet customers 27 NYSE: WMT

28 Financial Services Walmart Canada Bank

29 Our lines of business Credit Cards Insurances & Warranties Money Services Gift Cards 29 NYSE: WMT

30 Enhancing sales and loyalty 1. References to dollars spent in our stores means Walmart stores in Canada, before taxes. Some exclusions apply. See Walmart Rewards Program Terms and Conditions for more information. *Walmart Rewards are redeemable for savings on future purchases made at Walmart stores in Canada only. Conditions, restrictions and exclusions apply. Walmart Rewards cannot be redeemed for cash and cannot be redeemed for more than the equivalent dollar value of your purchase. To redeem your Walmart Rewards, you must redeem a minimum of $5.00. If you wish to redeem more than $5.00 worth of Walmart Rewards, you must do so in $5.00 increments. See Walmart Rewards Program Terms and Conditions online at for details. 30 NYSE: WMT

31 Social Responsbility

32 Best Workplace We offer opportunities to learn and grow through on-the-job training, classroom instruction, tools, resources and job aids. Walmart Canada has diverse cultural heritages from around the world, which we celebrate annually during our Cultural Awareness Day. 32 NYSE: WMT

33 Strong employer brand Canada s fastest-growing retailer A development destination 70% associate engagement 33 NYSE: WMT

34 Building talent Beyond attracting and hiring the best we are a talent factory. We build leaders through programs such as the Walmart International EMBA, which was developed in Canada and is now used in our international business for developing great leaders worldwide. Go to school Go abroad Go together Go it alone Harvard program for leadership development Visit Walmart international companies Working in teams on a real business issue Working with executive coaches 1 year program 34 NYSE: WMT

35 Women in Retail Our Women in Retail program continues to lead Walmart in innovation, having recently won the prestigious Diversity Journal Award of Excellence Innovations in Diversity. Since the inception of the program in 2010, there has been a 55.6 per cent increase in female store managers at Walmart Canada. 35 NYSE: WMT

36 Supporting families in need Our philanthropic initiatives are designed to have national scope and local impact. The Supporting Families in Need platform primarily supports three national charities, for which Walmart is the biggest national sponsor: Children s Miracle Network to help families with sick children Breakfast Club of Canada to help children start their day with a healthy breakfast Canadian Red Cross to provide consistent, dependable funding to allow the organization to act immediately when disaster strikes Donated and raised more than C$200 million for Canada charities since NYSE: WMT

37 Our three sustainability goals To be supplied 100% by renewable energy To create zero waste To sell products that sustain people and the environment 37 NYSE: WMT

38 Sustainability Achievements All-LED store In November 2013, the Walmart Canada store in Stratford, Ontario, became our first fully LED-lit facility By installing 18-watt LEDs throughout the new Supercentre in place of conventional fluorescent lighting, we ve reduced overall light energy consumption by an estimated 28% 38 NYSE: WMT

39 Sustainability Achievements Improving products In 2013 we saw several success stories including the conversion of our Hometrends PEVA tablecloth packaging We moved from preprinted, fully enclosed plastic bags to open-packaging concept made from folded carton materials and covers approximately half the tablecloth n addition to allowing the consumer to touch and feel the product, the new packaging delivers a more sustainable solution to the category 39 NYSE: WMT

40 Sustainability Achievements Sustainable seafood We work closely with the Walmart Global Seafood Sustainability Value Network to ensure the seafood offerings across Walmart Canada are responsibly sourced We re proud to have: Increased the amount of Marine Stewardship Council (MSC)-certified wild seafood in our supply chain from 22% to 34% Successfully decreased the amount of high-risk seafood in our supply chain. Required our vendors to report seafood volume and source data quarterly, which allows us to track and monitor activity. 40 NYSE: WMT

41 Resources To learn more about Walmart Canada: NYSE: WMT