PWW

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pww.comWalmart Inc. Presents at Oppenheimer's 24th Annual Virtual Consumer Growth and E-Commerce Conference, Jun-11-2024 09:45 AM - NYSE:WMT

NYSE:WMT

John R. Furner [Executive VP, CEO & President of Walmart US] 💬

** Key Points from John R. Furner's Presentation**

  1. Consumer Health and Expectations:

    • Consistency among consumer groups over the last several quarters.
    • Strong employment and wage growth, but ongoing inflation pressures.
    • Shift from discretionary to nondiscretionary spending (2% over 5 years).
    • Improvement in apparel and home categories due to store remodels and expanded assortment.

  2. Competitive and Promotional Front:

    • Market more promotional than a year ago.
    • Strategy to be the last to raise prices and the first to lower them.
    • Over 7,000 rollbacks, up 45% from the previous year.
    • Consumers responding positively to rollbacks, with significant unit growth in certain items.

  3. Food Consumption Trends:

    • Signs of increased at-home food consumption.
    • Cross-merchandising efforts in stores to promote cooking at home.
    • Management incentives adjusted to encourage top-line and bottom-line growth.

  4. Market Share and Customer Retention:

    • Confidence in retaining new customers, including higher-income cohorts.
    • Expanded delivery and pickup services, with significant growth in delivery.
    • Marketplace offering expanded to over 400 million SKUs.
    • Focus on unique marketplace offerings and customer trust.

  5. E-Commerce Profitability:

    • Expectation to be profitable within 1-2 years.
    • Quadrupled revenue in Walmart U.S. over 5 years, surpassing $100 billion globally.
    • Scale and efficiency in supply chain, reducing costs in last-mile delivery.
    • Opening of new automated fulfillment centers.

  6. Alternative Revenue Streams:

    • Marketplace: Emphasis on unique assortment, customer transparency, and seller support.
    • Media (Walmart Connect): Growing over 25% in the latest quarter, focusing on customer experience and ad effectiveness.
    • Walmart Plus: Double-digit growth, focus on perfect order delivery, and convenience features.

  7. General Merchandise Recovery:

    • Unit growth stronger despite negative sales trends.
    • Focus on lowering prices to drive unit sales.
    • Positive trends in apparel and home categories.
    • Continued store remodels and merchandising improvements.

  8. Inventory Management:

    • Improved inventory conditions attributed to better demand forecasting and markdown discipline.
    • Empowering store managers and hourly associates with incentives and ownership.
    • Weekly meetings to address field feedback and improve operations.

  9. Supply Chain Automation:

    • Significant investments in automation, serving about 1,400 stores and doubling this year.

    • Benefits include increased accuracy, efficiency, and upskilling of associates.

    • Enhanced inventory visibility and accuracy.

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