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Walmart Price Leadership Assertions: EDLP+

Walmart Price Leadership Assertions: EDLP+. me. Individualized appeals. Degree of targeting, sophistication. Local Market Campaigns. Private Labels. Value Deals. Savings Events. KVIs. mass. EDLP. Source: Kantar Retail analysis. EDLP : Goal of USD6 Billion in Price Investment.

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Walmart Price Leadership Assertions: EDLP+

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  1. Walmart Price Leadership Assertions: EDLP+ me Individualized appeals Degree of targeting, sophistication Local Market Campaigns Private Labels Value Deals SavingsEvents KVIs mass EDLP Source: Kantar Retail analysis

  2. EDLP: Goal of USD6 Billion in Price Investment Furthering investment thru the end of 2016, “self-funded” Price Reductions: • “Lead with traffic-driving categories” • Broad application (not only KVIs), elastic items • Long-term investments Productivity Gains: • Lower remodel/new stores costs • Productivity in stores • Efficiency in transport, marketing, DCs… • Global sourcing • JBP Walmart reaffirms its pledge to reduce SG&A % thru the end of 2016 Source: Company presentations, Kantar Retail research

  3. Build Unique Value Appeal Private Labels Exclusive value across the merchandise ladder Source: Kantar Retail analysis, store visits; ECRM

  4. Rollbacks, Bonus Offers ValueDeals Rollbacks, as well as unique new ways to assert value, for a limited time Source: Kantar Retail analysis, store visits; ECRM

  5. Reinforce Leadership Local Market Campaigns Becoming more aggressive: matching BOGO offers “See For Yourself” campaign reaches ~75 markets across US, 70% of sales; TV ads are refreshed frequently 5 Testing matching of BOGO coupon offers in Florida Pilot started Sept. 2013 Across Supercenters, Discount, and Neighborhood Market Limit of two BOGO offers per item Receive Walmart’s EDLP price on the BOGO Source: Walmart.com, company presentations, Kantar Retail analysis

  6. Create Reason to Shop Now Savings Events Source: Kantar Retail analysis, store visits; company materials

  7. Investing to Drive Impressions Key Value Items Source: Company presentations; Kantar Retail analysis, store visits “If we invest in price and there is no sales response, we are not going to invest in those categories.” - Bill Simon, September 2013

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