1. 1 planetretail.net WALMART INSIGHT DECK Growth markets and strategic initiatives December 2013 STEPHEN SPRINGHAM Senior Retail Analyst

2. 2 1.Planet Retail View 2.Overview 3.Major Strategic Initiatives 4.Key Markets 5.Further Reading Contents All data correct at time of publishing.

3. 3 Corporate Structure - Walmart International The International division is structured around three geographies (EMEA, LATAM, Asia). 2. Overview David Cheesewright President & CEO, Walmart EMEA EMEA Doug McMillon President & CEO Walmart International Enriqué Ostalé President & CEO, Walmart Latin America Latin America Scott Price President & CEO, Walmart Asia Asia Shelly Broader President & CEO, Canada Grant Pattison President & CEO, South Africa (Massmart) Sub-Saharan Africa Andy Clarke President & CEO, UK (Asda) UK Franchised George stores. Middle East Scot Rank President & CEO, Walmart de México & Central America Mexico Marcos Samaha President & CEO, Brazil Horacio Barbeito President & CEO, Argentina Chile Gian Carlo Nucci President & CEO, Chile (D&S) Greg Foran President & CEO, China Steve Dacus President & CEO, Japan (Seiyu) Japan Ramnik Narsey President & CEO, India (interim) India A new head of International will be appointed to take office from 1 February 2014, when McMillon steps up to become President & CEO of Walmart.

4. 4 The long tail: the US is nearly nine times larger than Walmart’s second biggest market, the UK. Some 15 markets have sales of less than USD1 billion. Chart features the Top 10 Walmart countries by size and excludes markets with sales less than USD3 billion. Source: Planet Retail “[Internationally] The majority of revenue and profit comes from our operations in the UK, Mexico and Canada.” CHARLES HOLLEY Walmart EVP, Chief Financial Officer (March 2013)

5. 5 Walmart: Canada SWOT STRENGTHS  Canada is one of Walmart’s longest-established international markets.  Supercentres have had a significant impact on the Canadian grocery market. Already the second-largest retailer overall, Walmart will challenge Loblaw for market leadership.  Geographic proximity to US has enabled almost seamless deployment of EDLP and supply chain practices.  Global scale and lean cost structure enables Walmart to better absorb inflationary pressures compared to its domestic rivals. OPPORTUNITIES  Further conversions/upgrades of discount stores to Supercenters (around 170 discount stores remained trading at the 2013 fiscal year-end).  Further organic expansion of Supercenters in under-represented region (e.g. the Maritime Provinces in the east).  Introduction of smaller-box formats - Neighborhood Market or Express - to mirror its strategy in the US.  Possible acquisitions of smaller rivals. WEAKNESSES  Walmart took longer than expected to become a success.  Failure of Sam's Club in Canada has left something of a bitter taste.  Grocery merchandising, although improving, still lags behind Sobeys and Loblaw.  Heavily exposed to GM, many sub-sectors of which are suffering weak consumer demand.  Absence of a smaller format gives competitors such as Sobeys an advantage in targeting the convenience/urban segment.  Poor reputation in union/labour relations. THREATS  Target entered the market early in 2013 and is expanding aggressively.  Although Target has struggled to achieve its performance targets since entering Canada, it is nevertheless intensifying competition in the non- food sector.  The grocery market is subject to ongoing consolidation (e.g. Sobeys’ takeover of Safeway’s Canadian stores) and competitors are therefore becoming larger.  Walmart could over-expand in its efforts to head off Target’s incursion into Canada.  Unionisation.