© Copyright 2013 Kantar Retail Figure 1 Source: Company reports, Kantar Retail analysis 1 Walmart US: Comps and sales growth, by quarter

© Copyright 2013 Kantar Retail Figure 2 Source: Company reports, Kantar Retail analysis Walmart US performance by department, by quarter

© Copyright 2013 Kantar Retail Figure 3 Unique Monthly Visitors to Walmart.com, Target.com, and Amazon.com Source: Compete, Kantar Retail analysis 3

© Copyright 2013 Kantar Retail Implications for Walmart’s Suppliers Considerations for alignment Source: Kantar Retail analysis Walmart’s PositionSupplier Implication Walmart is broadening its audience focus to reach more affluent shoppers and drive traffic Further align with “live better,” alongside EDLP Consider greater emphasis of higher-tier items and value-sizes in your portfolio, while articulating your distinct position vs. Sam’s Club Explore aligning with new fulfillment options and digital solutions to further distinguish appeals Inventory performance is pressured, as the retailer works to build its local relevance Use point-of-sale data and shopper feedback to articulate the case for under-performing SKUs Balance pitch of their shopper aims and returns Multi-channel efforts are accelerating, as Walmart invests to aid sales growth in- store and online Articulate your plan to reach shoppers through its mobile app at the shelf, iteratively trying solutions Expect that leverage of social media insights to hone shopper appeals will be of rising importance Neighborhood Market’s strong performance continues, while its also furthering its rollout Recognize the rising need to develop a distinct strategy and resources to reach this unique audience