1. Wal-Mart Stores, Inc.
Charles Holley
EVP - Finance & Treasurer
Citigroup Retail Conference
February 14, 2007
Balance … Returns & Growth
2. Forward Looking Statement
Wal-Mart includes the following cautionary statement to take
advantage of the “safe harbor” provisions of the PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995 for any forward-
looking statements made by, or on behalf of, Wal-Mart. You are
referred to Wal-Mart’s SEC filings for additional information
regarding the safe harbor. The factors which could cause actual
results to differ materially from predicted results include, among
other things, cost of goods, competitive pressures, geopolitical
conditions, labor and healthcare costs, inflation, consumer spending
patterns and debt levels, currency exchange fluctuations, trade
restrictions, changes in tariff and freight rates, fluctuations in the
costs of gasoline, diesel fuel and other energy, accident and
insurance costs, interest rate fluctuations and other capital market
conditions, weather conditions, storm related damage to our facilities
and customer traffic, regulatory matters and other risks set forth with
the company’s filings with the SEC.
Balance … Returns & Growth
3. January 07 Comp Store Sales
Five Weeks Ended
02/02/2007 02/03/2006
Wal-Mart 1.9% 3.6%
Stores
Sam’s Club 3.4% 6.6%
Total U.S. 2.2% 4.0%
Balance … Returns & Growth
4. January Sales
• Grocery, electronics, pharmacy strong
• Marketing messages, rollbacks
connect with customers
Balance … Returns & Growth
5. Strong Performance in Last 4 weeks:
ASDA Strongest YoY Growth of Big 4
15.0
10.0
5.0
0.0
(5.0)
(10.0)
(15.0)
(20.0)
Feb 06 Apr 06 Jun 06 Aug 06 Oct 06 Dec 06 Jan 07 Mar 07 May 07 Jul 07 Sep 07 Nov 07 Jan 07
Stores: TNS
Balance … Returns & Growth
6. Wal-Mart U.S. Organization
• Eduardo Castro-Wright – President & CEO
Wal-Mart U.S.
– Pat Curran Operations
– John Fleming Merchandising
– Bill Simon Professional Services
– Stephen Quinn Marketing
– Celia Swanson Customer Initiatives
Balance … Returns & Growth
7. 3-year Strategic Plan
Chain-wide
Rollout
Layout &
Adjacencies
Store
Experience
Customer Relevancy
Merchandise
Assortment
Low Prices,
Always
Organization
Structure
In-Market
Market Pilots
Research &
Segmentation
Year 1 Year 2 Year 3
Balance … Returns & Growth
8. Company Expansion Program
FY ’08
Expansion
Supercenters 265 - 270
Discount Stores 5 - 10
Neighborhood Markets 15 - 20
Sam’s Club 20 - 30
Total U.S. Expansion 305 - 330
International 315 - 325
Total Unit Growth 620 - 655
Balance … Returns & Growth
9. Balance…Returns & Growth
Next year
Last 5 years Next 5 years
Percentage Growth
C
A
P S
S S
E A
A A
S X L
L L
S S C
Q
E
E E
Q Q A
C S
S S
P
F A
F F E
T P
T T X
E
X
Note: For illustrative purposes only
Balance … Returns & Growth
10. Sustainability Makes Business Sense
“We will not be measured by our
aspiration; we will be measured
by our action”
– Lee Scott, July 12, 2006
Balance … Returns & Growth
11. Why is WMT US so efficient
Every Day Low Cost
(EDLC)
=
Everyday Low Price
(EDLP)
Balance … Returns & Growth
18. Balance…Returns & Growth
• Continue to build upon Small Business Foundation
• Continue broadening our Appeal
• Improving Business Operations & Efficiency
• FY08 Growth Plans
BALANCE…RETURNS & GROWTH
19. Balance…Returns & Growth
• Continue to build upon Small Business Foundation
• Continue broadening our Appeal
• Improving Business Operations & Efficiency
• FY08 Growth Plans
BALANCE…RETURNS & GROWTH
21. Small Business is our
Foundation
Small Business Trends
• Small businesses owners (SBOs)
Increase
watch pennies
Relevance to
• SBOs value consistency:
certain Small
products, in-stock, hours, item
location in Club
Business Segments
• Many are looking for ways to
simplify their time stressed lives
• Small business growth continues
BALANCE…RETURNS & GROWTH
22. New Office Product Catalog
• Positions Sam’s Club as
destination for office
products
• Significant savings vs.
office supply companies
• 2 million catalogs
distributed
• Strong online presence
BALANCE…RETURNS & GROWTH
23. Office Administrator Event
• January national open-house
• Avg. 40 attendees per Club
• Drove sales of office
categories and built new
Click and Pull sales
BALANCE…RETURNS & GROWTH
24. Balance…Returns & Growth
• Continue to build upon Small Business Foundation
• Continue to broaden our Appeal
• Improving Business Operations & Efficiency
• FY08 Growth Plans
BALANCE…RETURNS & GROWTH
25. Advantage Members
Consumer Trends
• Customer composition is
changing rapidly
Increase
• Consumers are both trading up
and trading down
relevance to
• Trip frequency triggered by the
certain Consumer
need for a specific items
• Internet transforming Consumers Segments
education and comparison
shopping
BALANCE…RETURNS & GROWTH
28. Balance…Returns & Growth
• Continue to build upon Small Business Foundation
• Continue broadening our Appeal
• Improving Business Operations & Efficiency
• FY08 Growth Plans
BALANCE…RETURNS & GROWTH
29. RFID Progress
• Our journey began in Sam’s Club in 2004 with
installation of equipment in 36 Clubs
• In 2005 we began testing and piloting the
program with our Top 100 Suppliers
• Last year we began to focus on:
• Pallet locations
• Data analysis
• New system applications
BALANCE…RETURNS & GROWTH
30. RFID is a Journey
• Reader and tag costs down
• Tags down 50% - 70%
• Readers down 40%
• Gen 1 Tags phase out
• Gen 2 Tags
• Global standard
• Step change in performance
• Enables reads in harsh
environments
BALANCE…RETURNS & GROWTH
31. Environmental Sustainability
To Create To Sell Products that
To be Supplied 100%
Zero Waste Sustain our Resources &
by Renewable Energy
Environment
• Existing stores 20% more
• 25% reduction in solid • 20% supply base aligned in
efficient in 7 years
waste in 3 years 3 years
• New stores 30% more
• All private brand • Preference given to aligned
efficient in 4 years
packaging improved in 2 suppliers in 2 years
• Fleet 25% more efficient
years (right sized, • Design and support Green
in 3 years, double in 10
reusable materials) Company in China
years
BALANCE…RETURNS & GROWTH
32. Sandwich Bale Development
• Super Sandwich Bale
• Current Sandwich Bale
• PET Bottles • Hangers
• Cardboard
• Office Paper
• Plastic wrap • Plastic
• Aluminum Cans • Cardboard
BALANCE…RETURNS & GROWTH
33. Environmental Sustainability
• Pine-Sol Packaging
• Improve member value & provide
sustainability win
• Upsized from 144 oz. to 175oz.
using same bottle pre-form
• Business Benefits
• 7% sales improvement
• Transportation savings due to
more product per pallet
• Environmental Benefits
• Saves over 11,000 gallons of
gasoline
• Saves 7,600 trees due to 3,500
fewer pallets
BALANCE…RETURNS & GROWTH
35. Balance…Returns & Growth
• Continue to build upon Small Business Foundation
• Continue broadening our Appeal
• Improving Business Operations & Efficiency
• FY08 Growth Plans
BALANCE…RETURNS & GROWTH
36. Future Growth
• 20 – 30 Total Real Estate
projects in FY08
• 10 – 15 Net New Clubs
BALANCE…RETURNS & GROWTH
