Walmart Watch Measuring promotional shifts in the circulars

Walmart Watch Measuring promotional shifts in the circulars of the world’s largest retailer August 2015 Confidential; © 2015 Efficient Collaborative Retail Marketing Discover. Measure. Act. 1

This month’s drops by the numbers Walmart’s circulars in August 2015 showcased the retailer’s offerings as shoppers planned fall seasonal activities and checked off Back to School shopping lists. Metric Page Count 8/14 Drop 8/28 Drop 24 24 Feature Count 139 146 Rollback Share 25% 18% New Items 4 7 Key Events Back to School, Clean up Savings Game Time, Grilling Sale 19% 8% Private Brand Share Confidential; © 2015 Efficient Collaborative Retail Marketing Walmart-US - Cleveland, OH - 8/14/2015 Circular - Page 1 (Front) Walmart-US - Cleveland, OH - 8/28/2015 Circular - Page 1 (Front) Discover. Measure. Act. 2

BTS emphasis prevalent in 8/14 drop The 8/14 drop continued the trend seen in July of emphasizing Back to School, with offerings including school supplies, cleaning solutions, and lunch foods. Confidential; © 2015 Efficient Collaborative Retail Marketing Discover. Measure. Act. 3

Fall transition emphasized in the 8/28 drop The 8/28 drop focused on the transition into fall with offerings in camping/grilling supplies and football merchandise. This circular also included several ‘Back to College’ pages and the first promotions of the holiday season with layaway details announced. Confidential; © 2015 Efficient Collaborative Retail Marketing Discover. Measure. Act. 4

Feature Counts Continue Y/Y Declines While August’s feature counts still lagged compared to previous years, the 285 promoted items August nearly doubled the 145 seen in June and July. This bump was primarily the result of a second circular drop, while only one was released in recent months. Feature Count by Calendar Month 3500 3000 2500 2000 1500 1000 500 0 Jan Feb Mar Apr May 2013 Confidential; © 2015 Efficient Collaborative Retail Marketing Jun 2014 Jul Aug Sep Oct Nov Dec 2015 Discover. Measure. Act. 5

General Merchandise takes strong share in August 2015 August saw a reversal of the 2015 trend of shifting promotions from General Merchandise to Grocery items. The 58% of the circular dedicated to General Merchandise was the strongest monthly showing of the year, while the 20% grocery share was the lowest. Department Share of Promotions August 2015 August 2014 YTD 2015 YTD 2014 0% 10% 20% 30% General Merchandise Confidential; © 2015 Efficient Collaborative Retail Marketing 40% Grocery 50% 60% HBC Discover. Measure. Act. 70% 80% 90% 100% Non-Food Grocery 6

Private Brand strong in Housewares, Apparel Private Brand continued the July spike of Walmart store brand promotions, driven again by Housewares and Apparel. Private Brand Share of Promotions 14% 12% 10% 8% 6% 4% 2% 0% Jan Feb Mar Apr May Jun 2014 Confidential; © 2015 Efficient Collaborative Retail Marketing Jul Aug Walmart-US - Cleveland, OH - 8/14/2015 Circular - Page 14 (Middle) 2015 Discover. Measure. Act. 7

Rollback activity pulls back from July spike While rollbacks weren’t as prevalent as the abnormally high spike in July, the 21% of promotions with a rollback callout remained elevated compared to the rest of the year. Share of Promotions with Featuring Rollback 40% 35% 30% 25% 20% 15% 10% 5% 0% Jan Feb Mar Apr 2013 Confidential; © 2015 Efficient Collaborative Retail Marketing 2014 May Jun Jul Aug 2015 Discover. Measure. Act. 8

New items at Walmart this month The new items released in August were primarily seen in the toys and electronics departments, with offerings that support the beginnings of the holiday and football seasons. Confidential; © 2015 Efficient Collaborative Retail Marketing Discover. Measure. Act. 9

Contact Us Lead Business Intelligence Analyst Tanie Andraos (440) 498 -0500 ext. 1161 tandraos@ecrmdata. com These materials were prepared specifically for use by the receiving party only. The materials, and the information they contain, are confidential and proprietary to Efficient Collaborative Retail Marketing Company, Inc. (ECRM) and any related companies, and may not be reproduced, published or otherwise disclosed to others without express authorization from ECRM. Confidential; © 2015 Efficient Collaborative Retail Marketing Discover. Measure. Act. 10