Sam's Club Leadership Team · 2013. 9. 11. · Sam’s Club received the highest numerical score...
Transcript of Sam's Club Leadership Team · 2013. 9. 11. · Sam’s Club received the highest numerical score...
Sam's Club Leadership Team
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Tim Yatsko SVP, Replenishment & Planning
Charles Redfield EVP, Merchandising
Todd Harbaugh, EVP, Operations
Whitney Head
SVP, General Counsel & Asset Protection
Rosalind Brewer
President & CEO Sam’s Club
Ann Bordelon SVP, Finance
John Boswell SVP, Marketing, Insights & eCommerce
Mike Turner
SVP, Membership
Ismat Mirza SVP, People
Strengthening focus on Member value
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In-club efficiency
Member engagement
Merchandise relevance
Everyday
Needs Wow
Excitement Simple
Solutions
Superior value
to our
Members
Committed to “Savings Made Simple” framework
3
Superior
Value
& Growth
Differentiated
Merchandise
Lasting
Member
Relationships
Talent &
Continuous
Innovation
Efficient
Engaging
Experience
Anytime
Anywhere
Strong 1st half performance
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Data thru July 31
(excludes fuel)
% Growth rates 1H FY13
Net sales 5.8%
Op. inc. 9.3%
4-5-4 Comp
1H FY12
1H FY13
4.6%
4.7%
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Price and quality investments deliver results
Fresh meat
+7%
Dry grocery
+9%
Apparel
+12%
Baby care
+12%
Innovation drives operational efficiency
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In-Club Logistics Capital
Club wage expense % of Sales
Average cost per remodel DC operating expense % of Sales
Engaging Members through digital platforms
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Digital sales
Traffic
Orders
Financial scorecard
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Sales
Gross profit rate
SG&A as % of sales
Membership income
Operating income
Financial priorities – unchanged & aligned
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RETURNS GROWTH LEVERAGE 1 2 3
Superior value
through
merchandise
Accelerated
growth plan
Operational
productivity
Leveraging
digital
Membership fee
income
Focused on enhancing Member value
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Superior
Value
& Growth
Differentiated
Merchandise
Lasting
Member
Relationships
Talent &
Continuous
Innovation
Efficient
Engaging
Experience
Anytime
Anywhere
Leveraging eCommerce
and digital capabilities
Driving club productivity
and experience
Delivering great merchandise
at a superior value
Enhancing our Membership
offering
4 1
2 3
Focused on enhancing Member value
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Superior
Value
& Growth
Differentiated
Merchandise
Lasting
Member
Relationships
Talent &
Continuous
Innovation
Efficient
Engaging
Experience
Anytime
Anywhere
Leveraging eCommerce and
digital capabilities Driving club productivity
and experience
Delivering great merchandise
at a superior value Enhancing our Membership
offering 4 1
2 3
The right merchandise for Members
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Merchandise drives value
13
Artisan Fresh Rotisserie
Chicken
Mighty Pop 50-lb
Bag
Assorted Pie
Sampler Sharp 90” LED
Television
$4.88 $21.98 $11.98 $9,998
Delivering what our Members want
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Merchandising strategy drives Member value
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Relevant and Exciting Merchandise Business Member Considerations
General Merchandise
Newness and Innovation
Differentiated Assortment
Allowing Small Business
Owners to:
Save Time and
Money
Enjoy Sustainable
Products
Access Solutions to
Make Their Jobs Easier
2 3 Pricing
Member
Ranking
Reasons Why Members Join
Sam’s Club??
1 Thought prices would be lower
than other stores
2 Wanted the option to buy in
bulk
3 Interested/curious about
shopping there
The #1 reason our Members join is
Price1
1
Everyday
Needs Wow
Excitement Simple
Solutions
1. Sam’s Club Demand Landscape (2012), The Cambridge Group Analysis
Focused on enhancing Member value
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Superior
Value
& Growth
Differentiated
Merchandise
Lasting
Member
Relationships
Talent &
Continuous
Innovation
Efficient
Engaging
Experience
Anytime
Anywhere
Leveraging eCommerce and
digital capabilities Driving club productivity
and experience
Delivering great merchandise
at a superior value Enhancing our Membership
offering 4 1
2 3
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Self Checkout Convertible register Tablet register Mobile checkout
Step 1
Step 2
Step 3
Step 4
Driving productivity through innovation
Member experience and engagement
enhanced by innovation
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“All lanes open all the time” with “assisted checkout”
Member experience is first class
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Sam’s Club received the highest numerical score among mass merchandiser pharmacies in the proprietary J.D. Power and Associates 2012 National Pharmacy StudySM. Study based on 12,764 total responses,
and measures 11 mass merchandiser pharmacies. Proprietary study results are based on experiences and perceptions of consumers surveyed July-August 2012. Your experiences may vary. Visit jdpower.com
“Highest in Customer Satisfaction with Mass Merchandiser Pharmacies”
-J.D. Power and Associates
Rank Company
1 Sam’s Club
2 Publix
3 A Credit Union
4 Chick-fil-A
5 Subway
6 Starbucks
7 H.E.B.
8 Winn-Dixie
9 Aldi
10 Sonic Drive-in
(2012)
Focused on enhancing Member value
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Superior
Value
& Growth
Differentiated
Merchandise
Lasting
Member
Relationships
Talent &
Continuous
Innovation
Efficient
Engaging
Experience
Anytime
Anywhere
Leveraging eCommerce and
digital capabilities Driving club productivity
and experience
Delivering great merchandise
at a superior value Enhancing our Membership
offering 4 1
2 3
Digital engages more Members, more often
21
Online traffic by device Traffic growth by device
72%
17%
11%
Prior to the club
While shopping
Digital integrates club experience, offers expanded access
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After shopping
Focused on enhancing Member value
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Superior
Value
& Growth
Differentiated
Merchandise
Lasting
Member
Relationships
Talent &
Continuous
Innovation
Efficient
Engaging
Experience
Anytime
Anywhere
Leveraging eCommerce and
digital capabilities Driving club productivity
and experience
Delivering great merchandise
at a superior value Enhancing our Membership
offering 4 1
2 3
Membership trends continue to improve
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Base
Business signups
Renewals
Upgrades
New Membership pilot: testing membership
value; fee options
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New Membership pilot in Texas markets
highlighting more for our Members
Effective in 76 clubs as of Oct. 8th
New Membership pilot: three membership
types, fee increase
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Sam's Plus
$100
Sam's Savings
$40 to $45
Sam's Business
$35 to $45
(no fee change)
New Membership pilot: more savings for all
Members
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New Membership pilot: Plus membership
receives cash rewards
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$10 cash rewards
for every $500 spent
Growth, leverage and returns remain
financial priorities
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RETURNS GROWTH LEVERAGE 1 2 3
Superior value
through
merchandise
Accelerated
growth plan
Operational
productivity
Leveraging
digital
Membership fee
income
Accelerating new club growth
30
Sam’s new club growth
10-15
Capital expenditures update and forecast
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CapEx Detail FY12
Actual
FY13
Projection
FY14
Projection
Total Capital Spend $0.8B ~$1B ~$1B
New Clubs 3 9 10 - 15
Relocation and Expansion 6 5 2 - 5
Remodel Projects 65 70 65 - 75
Savings Made Simple framework drives strategy
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Superior
Value
& Growth
Differentiated
Merchandise
Lasting
Member
Relationships
Talent &
Continuous
Innovation
Efficient
Engaging
Experience
Anytime
Anywhere
• Strong performance
• Strategy remains consistent
– Member driven merchandising
– In-club efficiency
• Accelerated growth plan
– Piloting new Membership fee /
benefits structure
– New club growth
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