Rosalind G. Brewer. President and CEO Sam s Club

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2 Rosalind G. Brewer President and CEO Sam s Club

3 Sam s Club leadership team Charles Redfield Merchandising Don Frieson Operations Michael Dastugue Finance & Real Estate Jamie Iannone samsclub.com Ismat Mirza People Jeff Gruener Replenishment, Planning & Innovations Racquel Harris Member Strategy, Marketing & Insights Whitney Head General Counsel & Asset Protection

4 Today s focus Sam s Club Making investments to deliver on our member promise Data is fueling our forward-looking perspective of the business Merchandise transformation is accelerating Access enhancements are integrating the physical and digital 4

5 FY15 1H results were mixed Sales Gross profit rate Operating expenses Membership income Operating income Inventory Financial results excluding fuel 5

6 Making improvements on all fronts Merchandise Digital and physical Membership 6

7 Credit value for ALL members Sam s Club MasterCard 5% cash back on fuel 3% cash back on dining and travel 1% cash back on everything else Maximum of $5K in Cash Back rewards can be earned in a calendar year. 7

8 Cash rewards for PLUS members Sam s Club Plus Cash Rewards Exclusive Plus benefit Earn $10 for every $500 spent Redeemable for cash or credit Members can earn $10 in Cash Rewards for every $500 in qualifying pre-tax purchases during a membership year with a maximum reward of $500 per 12-month period. 8

9 Our members are changing Boomers Millennials Small Business Quality and valueoriented Proactive about health Highly price conscious Early trend adopters Convenience-driven One-stop-shop Easy fulfillment 9

10 Utilizing data better than ever before Prospecting Engagement Renewal Prioritize target member Create emotional connections Capture critical moment of truth Awareness Consideration Acquisition Day 1 On-boarding Engagement Renewal Day 365 On-going engagement 10

11 Exceeding member expectations with merchandise 11

12 Charles Redfield Executive Vice President, Merchandising Sam's Club

13 Focused on newness Newness creates EXCITEMENT Excitement drives TRAFFIC Traffic drives ENGAGEMENT Engagement drives RETENTION Retention drives ADVOCACY 13

14 Changing how we buy and assort clubs GAP SPRING SUMMER FALL / HOLIDAY 14

15 Tracking with current member trends Healthy for you Ready for you Exciting for you 15

16 Merchandise key trends

17 Ready for the holiday season 17

18 Exceeding member expectations by integrating digital and physical 18

19 Jamie Iannone President and CEO samsclub.com

20 Digitally-engaged membership base samsclub.com fueling digital migration Portfolio of digital platforms Club Pickup delivering convenient access Laying the foundation for accelerated omnichannel growth 20

21 Using mobile to connect with the member Easy Simplified access shopping Personalized experience 21

22 Improving all four mobile platforms mweb Android ipad iphone Ongoing site improvements All New App: FY14 Q4 All New App: FY15 Q1 All New App: FY15 Q2 22

23 Completely new iphone app launched 23

24 Building momentum with Club Pickup Online Order picking Member pickup Smart ordering tools Text notifications Wider assortment Next generation handheld devices and processes Improved fulfilment accuracy Improved communication Smoother operational processes Member check-in kiosk 24

25 Club Pickup

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27 Efficient capital strategy CapEx Detail FY14 Actual FY15 Original FY15 Revised guidance FY16 Projected Units New, relocation, & expansion ~ Remodel projects Square footage Net retail square footage 1.7M ~2.0M ~2.0M ~1.0M 27

28 Sam s Club Key takeways Making investments to deliver on our member promise Data is fueling our forward-looking perspective of the business Merchandise transformation is accelerating Access enhancements are integrating the physical and digital 28

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