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Renzo Casillo Executive Vicepresident & COO, Self-service and Suburbia March 18, 2015 1
Renzo Casillo Executive Vicepresident & COO,
Self-service and Suburbia
March 18, 2015
1
Renzo Casillo
COO 11 years in Walmart
José Luis
Torres
Bodega Aurrera 40 years in Walmart
Sergio Guillin
Walmart
Supercenter 11 years in Walmart
Mariano Ventura
Superama 7 years in Walmart
Manuel Álvarez
Suburbia 21 years in Walmart
León Casado
Customer
Intelligence 10 years in Walmart
Rafael Bracho
Commercial
Planning 4 years in Walmart
Gerardo Ruíz
Operational
Sinergy 3 years in Walmart
Álvaro Arrigunaga
CMO 21 years in Walmart
2
152 years of Walmart experience
Rodolfo Cuevas
Finance 24 years in Walmart
3
Positive trend in same store sales
2012 2013 2014 2015 (Jan – Feb)
Self-service
comp growth % 3.2 -0.2 2.0 4.7
4
… outgrowing the market in 2014
2012 2013 2014 2015 (Jan – Feb)
Self-service
comp growth % 3.2 -0.2 2.0 4.7
Diff. vs ANTAD
self-service (bps)
-30 70 240 90
-0.4 2.0
5
Positive trend vs the market
2014 Same stores growth %
Walmex
Self-service
ANTAD
Self-service
ex-Walmex
6
… all formats were above
2014 Same stores growth %
Walmex
Self-service
ANTAD
Self-service
ex-Walmex
-0.4 2.0
4.0
1.9 1.7
7
But we can do better
2014 Same stores growth %
Walmex
Self-service
ANTAD
Self-service
ex-Walmex
Department
stores
ex-Suburbia
-0.4
4.9
2.0
4.0
1.9 1.7
1. Double total sales
2. Consistently grow
earnings faster than sales
8
Opportunity: next 10 years
9
2015 strategic priorities
Our customer is first
Simplify the business
People
Future growth
10
2015 strategic priorities
Our customer is first
11
Two strategic levers
Merchandise
Our customer is first
Price
12
Two strategic levers Our customer is first
Price
13
Price: perception improved in 2014
2013
2014
Our customer is first
Price perception improved
across our formats
+4 pp
+ 3 pp
+4 pp
14
Price: increase gap by 100 bps!
Consistency and intensity
Regional execution
Private label
Our customer is first
15
Two strategic levers
Merchandise
Our customer is first
16
Food and consumables gained
market share in 2014 Our customer is first
460 bps
Walmex
Self-service
ANTAD
Self-service
ex-Walmex
Food and consumables growth vs ANTAD Self-service
17
Merchandise: relevant differentiation Our customer is first
Regionalization
Innovation:
First-to-market
Private label
+ imports
Traffic
Regionalization
Innovation:
First-to-market
Private label
+ imports
Traffic Accelerate high potential
categories
Sales &
Satisfaction 2x
faster
Share of growth
18
Merchandise: relevant differentiation Our customer is first
Perishables Pharmacy General merchandise
Accelerate high potential categories
19
Merchandise: relevant differentiation Our customer is first
Global leverage
Store execution Optimize supply
chain Perishables
Accelerate high potential categories
D2Farm
Our customer is first
20
In-stock
Commercial programs
Service level
Pharmacy
Accelerate high potential categories
Merchandise: relevant differentiation
Leverage US programs
Expand catalog through:
• Modulars
• eCommerce
Improve credit options
Our customer is first
General merchandise
Accelerate high potential categories
21
Merchandise: relevant differentiation
2013 2014
Credit card sales decreased
Our customer is first
Improve credit options
22
Commercial alliance with
Inbursa
Continue creating attractive
promotions with banks
Testing new credit models
Self-service and Suburbia
10% More than
Merchandise: relevant differentiation
23
2015 strategic priorities
Simplify the business
24
Leverage expenses Simplify the business
Workforce
management
25
Simplify the business Leverage expenses
Workforce
management Merchandise flow
26
Simplify the business Leverage expenses
Workforce
management Merchandise flow
Front-end service
and productivity
27
Workforce
management
Reduce shrink in
perishables
Simplify the business Leverage expenses
Merchandise flow Front-end service
and productivity
28
2015 strategic priorities
People
29
World-class programs to have
the best talent People
Merchant Academy
30
World-class programs to have
the best talent People
Merchant Academy Operations
Academy
31
World-class programs to have
the best talent People
Merchant Academy Operations
Academy Women in Retail
32
World-class programs to have
the best talent People
Merchant Academy Operations
Academy Women in Retail Retention
33
2015 Strategic priorities
Future growth
Future growth
34
Grow both physical & digital
Store growth Omni-channel
Future growth
35
Grow both physical & digital
Store growth
36
Our small format grew double digit
-0.5
11.5
Future growth
2014 % Comp growth
ANTAD Specialized,
Food+Consumables
37
We will grow all formats
Growth composit ion
Future growth
Underserved areas via medium and
smaller stores
Develop & test new prototypes of
larger formats
Growth contribution
Future growth
38
Grow both physical & digital
Omni-channel
39
Growing faster than the market
eMarket
* Source: comScore, December 2014
Visitors growth 2014 vs 2013 *
2x
Leaders in home delivery of
groceries and consumables
Best eCommerce
site 2014
Future growth
40
Win in eCommerce: unique proposition Future growth
Groceries
Walmart Super
Superama Home Delivery
Frequency
General merchandise
Walmart.com.mx
Needs and wants
41
Win in eCommerce: extended catalog Future growth
In store
DSV: Direct from
suppliers
Extended
catalog
In stock
Omni-channel options eCommerce
Immediacy Variety Satisfaction + =
42
Example: tires
Sizes: 30 Options: 61
13”
14”
15”
16”
~ 80%
Brands Rim size
Future growth
In store:
13”
14”
15”
16”
17”
18”
Sizes: 65 Options: 189
~ 75%
Brands Rim size
Online:
43
Our focus for 2015
Price
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Our focus for 2015
Merchandise Price
45
Our focus for 2015
Merchandise Talent Price
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Our focus for 2015
Merchandise Talent Omni-channel Price
