Walmart Inc. Common Stock Piper Sandler 5th Annual Growth Frontiers Conference

Thank you. Thanks for having me.

Yeah. I am going to address a small cozy room, so I will address all of you together. When I think about our growth, there is no one particular thing that we changed. It is the fruition of everything we have been doing for the past few years. When we look at Marketplace or any commerce business, we look at the right assortment, at the right price, at the right speed, that discoverable. What we are investing in is focused on, rather than vanity metrics, like what are the right SKUs people are looking for in a particular market, in a particular month. Enabling sellers to price it right, so building tools and capabilities where they can set low bar and high bar and compete with others. Third part of it becomes speed, which is critical. Think about same-day promises, next-day promises.

Part of my business is also to run Walmart Fulfillment Services, where we have our next-gen FCs that we invest in. We place sellers' inventory there. So in place, that inventory, that converts a 50% high conversion rate overall. When you add ads on top, that creates a discovery mechanism. When that whole pipeline fires up, you see basically conversion happen to a whole different level. That's what we're noticing is the growth coming in from getting all those pipelines connected together and our investments paying off.

Well, I feel like getting a candy store sometimes. It's first innings right now.

Yeah. We're getting our assortment, price, speed, and discovery together as such.

When you look at our assortment, working back with customers, we still have gaps in assortment. As we're getting more assortment, we're focused on getting the right assortment, placing them in the right nodes, so same-day, next-day delivery becomes critical to promise. Putting them in stores, which we'll talk about in a second as well. That gap actually is really exciting because we're filling those gaps, getting the right brands, the right sellers, the right D2C companies that can buy it. Getting K-Beauty, for example, that's right now sitting in back of the stores or FCs, and my wife taught me a lot about those brands, which I forgot, but I think Medicube and others that we get on board. We've seen that materialize really fast.

It's helping us connect with new customers. I'll give you an example. We got Nespresso. I think Dave talked about this recently. 40% of people who bought that from us never bought coffee from us before. We've seen our existing customers capitalize on this assortment that was never available, and we're seeing new customers come in for the new assortment that we're getting. We're seeing high penetration of higher income households that are buying. My wife buys never knew. We have our CMO, William White, who did the "Soon by You" campaign. I think that was like a master stroke.

My wife didn't know that we carried La Roche-Posay. So now she knows, and she's buying it from there. Never bought it before from Walmart. We've seen that trend happen more and more as we increase more assortment. The second part of this, when you think about growth is also international. My role changed to look at global marketplaces, which includes Canada and Mexico. Canadians and Mexicans want the same thing, right assortment, right price, right speed, that discoverable. We're starting to have the same playbook, leveraging, and that basically accelerates those markets. We open up walmart.com for Canadians and Mexicans to buy U.S. assortment from our sellers now. That's open. The last third part of that kind of equation becomes connecting to broader Walmart.

One of the best advantages that I've had building marketplaces that Walmart had invested in these foundation blocks for decades. We have one of the best supply chains ever in the world because we brought in goods from China and Vietnam. Now we can extend that platform to our sellers without significant investment. We're piggybacking on the backbone that really exists. Connecting the dots between those and the stores is another factor for growth. Still the first innings. Okay.