Transcript Getting Smarter on Walmart International

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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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
Walmart’s Global Retail Presence
100% Walmart ownership
Walmart majority ownership in a publicly traded company
China: 405
Includes 35%
interest in
Trust-Mart
United Kingdom: 574
Canada: 389
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
Africa:
Argentina: 104
10,842 Global Store Units
Source: Company reports, Kantar Retail analysis
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
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3
International in Investment Mode…But Growing
Stores
45%
12%
EMEA &
Canada
US Total
Sales
69%
US Total
36%
Latin
America
12%
EMEA &
Canada
7%
Asia
13%
Latin
America
6%
Asia
Operating Income
82%
US Total
Source: KRiQ.com, Company documents
18%
International
Total
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4
International Return on Investment
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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5
Diversity of Formats Globally
Big, small, and service formats
Specialists
Food Service
Upscale Mall
Development
Financial
Source: Kantar Retail research and anlaysis
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6
Distinctiveness of Store Formats
Breadth of store sizes and purposes
Apparel and soft goods focus
Limited assortment convenience
Home improvement goods with construction audience
Source: Kantar Retail store visits and analysis
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7
Walmart International: Regional Org Chart
Leadership moves again
Neil Ashe
President & CEO
David Cheesewright
President & CEO
Global eCommerce
Walmart International
Brett Biggs
CFO
Walmart International
Scott Price
Enrique Ostalé
TBD
President & CEO
Walmart Asia
President & CEO
Walmart Latin America
President & CEO
EMEA/Canada
Krish Iyer
Greg Foran
President & CEO
Walmart India
President & CEO
Walmart China
Steve Dacus
President & CEO
Japan/Seiyu
Gian Carlo
Nucci
Guilherme
Loureiro
President & CEO
Chile
President & CEO
Brazil
Horacio
Barbeito
President & CEO
Argentina
Shelly Broader
Andy Clarke
President & CEO
Walmart Canada
President & CEO
Asda, Walmart UK
Scott Rank
Grant Pattison*
President & CEO
Walmex- Centro
America
President & CEO
Walmart RSA
/Massmart
*Guy Hayward, current COO, will replace
Pattison effective June 1, 2014
Last update: April 2014
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8
Leadership Focuses More Broadly
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
Neil Ashe
President/CEO
Global eCommerce
Source: Kantar Retail research and analysis
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9
Strategic Priorities to Grow Internationally
EDLP Transformation
Digital & eCommerce Advancements
Global Leverage of Operational Resources
Private Brand Evolution
Focus on Sourcing
Source: Kantar Retail research and analysis
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10
Asda’s Multichannel Grocery Approach
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.
Source: Walmart Corp documents, Kantar Retail store visits and analysis
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11
Importing Private Brands to Drop Prices
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.
Source: Kantar Retail store visits and analysis
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12
China Forces Spotlight on Sourcing
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.
Source: Kantar Retail research and analysis
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13
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
Super
Market
Club
T1 – Bulk Shopping / Price
T2 – Small Business
Club
Top-up
shopping
trip
Bulk shopping
trip
Hypermarket
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.
Source: Kantar Retail research and analysis
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14
June 4–5 in Chicago, IL or June 18–19 in New York, NY
New Planning Coordinates: Navigating The Multichannel World
Mid Year
Forum
Walmart International:
Applicable Insights For The U.S. Market
June 5 (Chicago) & June 19 (NYC)
1:15 pm – 3:00 pm
Please email [email protected] for more information.
© Copyright 2014 Kantar Retail
Contact:
Amy Koo
Senior Analyst
[email protected]
T:+1 617 912 2872
www.kantarretailiQ.com
© Copyright 2014 Kantar Retail