walmart overview - amazon s3€¦ · walmart focus areas review (2015 seattle)-improve top line...
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WALMART OVERVIEW
Current Environment / Direction
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Walmart Consumer
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Walmart Focus Areas Review(2015 Seattle)
-Improve Top Line Sales-Store Traffic-Improving Customer Service and Execution-Inventory Levels / GRS-Lowering guidance and 3 Year Expectations
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TOP LINE - TRAFFIC
2016 Continues the Momentum – Traffic and Comps
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2 Year Stacked Comp / Traffic
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YTD Share Gains / Losses
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Traffic and Basket Continue to Diverge
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Walmart U.S. Traffic vs. Basket
Traffic Basket
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Apparel Continues Above Average Growth
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…..apparel mix smaller over time
21%
11%
8%
0%
5%
10%
15%
20%
25%
Walmart U.S. Apparel MixAs percentage of total sales
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2015: In Store Execution improving; Stores
appear to be cleaner and properly merchandised
2016 Continues Momentum
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Customer Service Continues to Improve
Statement: The customer service at Walmart is helpful:
-Walmart University Training Centers rolling out across US-Store conditions also continue to improve
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OSA – Progress Being Made
Has Walmart been out of stock on the items you were looking to purchase over the last 3 months?
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2015 Update: Inventory levels too highGRS: New replenishment system rolled out in Apparel. Inventory levels began dropping
2016 Continues to see inventory levels decline-Orders Below Sales-Comps Positive-Intentional and GRS
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Walmart U.S. Est. Comp Inventory vs. Comp SalesEst. Comp Inventory Comp Sales
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2015 Investor Meeting Headlines• Accelerating investments in people, tech, e-comm.• Multi Year Strategy• $1.5B Investment in wages • $2b+ Investment in price• 6%-12% EPS decline in 2016 • Stock Cratered
2015 Update: Money invested in store employees, technology, price and e-commerce
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2016 • Investments paying more dividends than expected
• Improved sales momentum• Market share gains
• Comps outpacing initial guidance• EPS Q2: $1.07 • Stock Price ($71.46 v 2015: $59.70)
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Conclusions• Focus continues to be on the right areas of the business• Investments yielding results faster than expectations• Comps projected to stay in positive ranges• Refocusing on EDLP / Less Promotions• Inventories to continue running leaner
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WALMART / DICKIES OVERVIEW
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Dickies Performance in Wal-Mart
• Scorecard
TOTAL BRAND KPI's YTD v PY
Sales 10.70%
Comp Store Sales 9.58%
Retail Dollar Inventory 9.34%
Repl Instock % -0.50%
Retail Turns 0.23%
Net Maintained Margin $ 10.23%
Net Maintained Margin % -0.42%
GMROII -0.58%
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Total DICKIES Retail Sales at Wal*Mart US
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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Biggest Talking Points
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Strategy / Focus Areas1. Expand performance and innovation2. Improve and drive productivity 3. Onboard new programs
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Business Categories
Men’s: 4,000 DoorsWomen’s 1,200 DoorsBoy’s 1,300 Doors
• Tailwinds • Comping Positive• Performance driving growth• Productivity Flip Outs improving performance and
shipments• Gaining new programs• Expanding Doors
• Headwinds • POS on legacy items challenged• Inventory / GRS tight across all categories• Space at a premium• Retail price points
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Key Performers / Business • Performance
• T-shirt franchise• Fits/Flex
• End Cap• Color Adds (VG / DS)• Shirt Section Re-Vamp / Assortment Additions• Transitional / Year Round Stores• Test and Roll• Productivity Moves / Analytics
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Walmart eCommerce Update
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Walmart.com Slipping
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Underperforming Competition
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• Still experiencing issues with the site but it has improved• Comps positive to PY, flat to 2014• Marketing efforts driving results• Adding Rich Content• Contractor a value add• Search a focus• Continued Pressure from WM for sku growth• Marketplace growing and being touted by WM internally
Dickies Business
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Where do we go from here?
Innovation and Newness
Productivity Wins / Analysis
E-Commerce?
Discussion / Q&A
Test Scalable Initiatives