1. How to Compete & Thrive in a Walmart World KEY ITEM PROMOTION “Picking Walmart’s P.O.C.K.E.T.S” SESSION #3

2. What YOU think about most of the time... Is what you become! Sam Walton’s Secret:

3. I do not choose to be a common man !!! Sam Walton’s Secret:

4. “What is the key to Sam Walton’s strategy for selecting products and services for Walmart’s Stores?” Merchant Strategy Question:

5. “Sam Walton used an outside-in approach to gather product ideas.” Answer:

6. Outside / In 1. Study competitors copy BP 2. Ask supplier partners 3. Collect ideas from employees 4. Ideas are free, “steal shamelessly”

7. Why Outside / In Innovation Versus Imitation

8. Saturday Morning Meetings Product Presentations by the Buyers

9. Customer Centered Focus Every WalMart Employee is expected to think like a Retail Merchant

10. Merchant Mentality via VPI Volume Producing Item

11. Vendor Partnership Information Sharing Trust Based Partnerships Automated Replenishment

12. Vendorville No 3 rd Party Brokers Meetings at WalMart HQ 1000+ Suppliers

13. 3 KINDS OF WALMART SUPPLIERS

14. Walmart’s Buyers Negotiate on behalf of Customers No Gift Policy Demand “The WalMart Price” Vendors must improve efficiency Demand In-Stock Execution

15. Hurricane Katrina “Walmart’s trucks arrived in New Orleans days before the United States Federal Government!”

16. Weather Technology Snow Storms Hurricanes

17. Store Wars “The battle for the Carts and Minds of Consumers”

18. Store Wars Between: Retailers Horizontally Walmart & Vendors Vertically The Weapon - Private Label

19. Store Wars Between: Scan Based Trading “Pay Per Scan”

20. “One Stop Shopping” In-Store “Non-emergency Care” Clinics Pharmacy Design Optical Center Hair Salon Auto Repair Groceries General Merchandise Financial Services

21. Retail Marketing “5 P’s” Product Price Place Promotion People

22. Retail Marketing Segmentation Strategy Hispanic Asians Empty Nesters / Baby Boomers Affluent Suburban Rural

23. Merchandising Execution The Wheelbarrow

24. Merchant Ideas For You Use an Outside / In approach Copy best practices of others Allow people to be merchants Never forget: The customer is the boss

25. How to Compete & Thrive in a Walmart World EXPENSES “Picking Walmart’s P.O.C.K.E.T.S” SESSION #3

26. Expenses “How important is expense control to Walmart’s overall retailing strategy?” Sam Walton

27. Answer: “The success of Walmart’s Every Day Low Price (EDLP) strategy is made possible by driving costs out at every step of the supply chain.”

28. Expenses “Every time Walmart spends a dollar foolishly, it comes out of our customers' pockets.” Sam Walton

29. “Walmart executives, managers and employees are cautious when it comes to spending money!” “Being cheap is valued at Walmart”

30. “Walmart’s relentless pursuit of low prices is as much a result of controlling expenses as it is a result of their buyer’s ability to buy at low prices.” “They pass expense savings along to their customers”

31. Walmart’s People Greeters Theft control specialists

32. Expense Control Office Supplies & Profit Sharing Paper usage Overtime Budget No Headcount Increases Relocation Executive Travel Technology – Temperature of Stores

33. The Sam Walton Way “Expense Control Standards” “Get employees to manage expenses like they were personally writing the check”

34. Leading Expense Control “Sam Walton was absolutely fanatical about controlling expenses”

35. Expense Control Lessons The Walmart Way As volume rises – expenses go down Lead by your own example Focus on the small things Culturally integrate cost control Measure, review and reward

36. Expense Control Ideas For You  Lead by your own example  Asked staff to spend like they were writing the check  Offer incentives for meeting expense goals?

37. Questions ????????? Join My LinkedIn Group www.michaelbergdahl.net

38. How to Compete & Thrive in a Walmart World KIP / EXPENSES “Picking Walmart’s P.O.C.K.E.T.S” SESSION #3