Todd Harbaugh Senior Vice President Sam s Club. March 18, 2015

Transcription

1 Todd Harbaugh Senior Vice President Sam s Club March 18,

2 Why do Members join? And why don t members renew? * Wholesale prices * Attractive promotions * Well-known brands * Novelties * Close locations * Children births * Similar products in Supermarkets / Department Stores * No significant savings * Can t find basic products (e.g. rice, sugar, beans) * Few novelties or offered only in certain seasons * Bad customer service (Long queues, Clubs without enough light) 2

3 Our 3-year strategic plan Build a Strong Foundation Accelerate Across Each Area Innovate & Optimize For Sustained Growth Become the Most Valued Membership Organization in Mexico

4 Accelerating in 2015 Talent Membership Merchandising Planning & Integration and Marketing In club Experience Member Centric Organization Talent Development on all levels Grow the Member Base Member Connection Member Perceived Value Differentiation Price Leadership New and exciting merchandise ecommerce Planning Process New Marketing Campaign Center of Excellence - IES Front End and Fresh Area Productivity 4

5 Sam s leadership team Talent Lilia Jaime VP Operations Mauricio Arnábar VP Groceries, Consumables & Fresh Roberto Gómez VP General Merchandise 34 years in Walmart 18 years in Walmart 20 years in Walmart Christie Grumbos Finance Director Lucas Freitas Membership Director Rafael Orozco Planning & Integration and MKTG Director 8 years in Walmart 3 months in Walmart 17 years in Walmart 5

6 Membership strategy Membership Accelerate Acquisition Increase Renewals Membership Value Executed for Business and Advantage Members 6

7 Several acquisition channels Membership Partner Membership Program Clubs Digital New Base Call Center Suppliers Agreements Current Base Banks Members Acquisition 7

8 Increase renewals MRM Connection with our Members Members Life cycle Membership Members Preferences Relationship Engagement Connect - Educate Growth Potential Share of Wallet Engage Loyalty Contact channels Direct and Intelligent Offers 8

9 Membership value Emotional perceived value 2015 Key to access a unique purchase Membership Now Access low prices Rational value 9

10 Our goal Duplicate the Business Membership Member Base Average Ticket 50% 10

11 Sustained member base growth Member Base Growth Highest in the last 2 years Membership Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sept 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 11

12 Membership driven merchandising Target: Sam s Club Business & Advantage Members and Prospective Members Strategic Headline: Membership Driven Merchandising Merchandising What s important to the member? Price Bulk Quality Excitement = Trust What are we going to provide the member? Merchandise Differentiation Commitment to Price Leadership Offer a Relevant & Unique Merchandise Portfolio 4 Layout And Feature Planning How will we do it? Organizational Alignment and Club Business Model Adherence Merchandising Capabilities Supplier Collaboration and Trust 12

13 Differentiation Number 1 reason why members renew Merchandising Exclusives Price Package Quality Exclusives Exclusives Price Brand Bulk Exclusives Package Innovation Quality Exclusives Newness Imports Exclusives 13

14 Differentiation Number 1 reason why members renew Merchandising Brand Exclusives Brand Exclusives Innovation Newness Brand Newness Imports Quality Newness Imports Quality 14

15 Price leadership Merchandising Number 1 reason why members join Investing in margin to drive Price Leadership Price from the Home Office Committed Suppliers Independent team checking prices 15

16 EDLC and productivity Importance for Members Right packaging is a big differentiator and increases value perception Before Importance for Clubs Less hand stacking; efficiency and Focus on service rather than stocking After Merchandising 16

17 Drive excitement with new and exciting merchandise Merchandising 17

18 Planning process Mindset of Member Merchandising Error Correction Themes Execution 8 Joint Business Planning Items Proposal Communication to Clubs Items Selection Marketing & Membership Plan Negotiation with Suppliers 18

19 Mobile App Merchandising Launch new site Q2 Mobile app Launch in Q3 Search by category Exclusive promotions (Coupon Books) Clubs Locations Inventory availability per club Calculation of cost of freight Membership Renewal on the app Wish lists Access to last purchases 19

20 Center of excellence In Club Experience Clubs in Center of Excellence outperformed the rest of the clubs 20

21 Visual merchandising In Club Experience 21

22 Color In Club Experience 22

23 Right features In Club Experience 23

24 Aggressive merchandising In Club Experience 24

25 Cross merchandising In Club Experience 25

26 Perishables In Club Experience 26

27 Focus on process improvement Front End In Club Experience Fresh Area Member Service 27

28 Member experience Overall Satisfaction % Renewal Intention In Club Experience Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan % Net Promoter Score Operational Focus Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Fast Friendly Clean Secure 28

29 New marketing campaign Planning & Integration and Marketing 29

30 Sales growth Total Stores Comp Stores 2013 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2014 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2015 Jan 30

31 In the end our focus will always be Creating value Providing opportunity for our Members for our Associates 31