Walmart at Goldman Sachs Conference Notes

Brett Biggs – EVP and CFO

Jet team is a big benefit for Walmart

“The second piece of that is the team. Marc Lore and the team have done great things with Jet; they did great things with Quidsi prior to that. And so the ability to take what that team knows, their industry knowledge and what they do and helping us continue to grow Jet but also is certainly a big benefit for Walmart. ”

We thought it was worth $3B

“the first thing we want to do as a Company is ensure that we are a healthy business long term. And we wanted to allocate capital in a way that ensures that that happens, understanding the realities of short-term and mid-term expectations. But the valuation, which is part about the different strings of value of the Company, we took all that in consideration, the value of Jet, the team, the ability to accelerate our own business, our own ecommerce business and taking that ecommerce business and continuing to do what we do well which is find that intersection between what we do in the stores, what we do at the ecommerce, there is a lot of value in that to us and helping accelerate that.”

Online grocery has been beneficiary of multi-channel

“Online grocery has been interesting. Our customers, we have gotten great feedback from customers on online grocery and it’s because if you think about Walmart, our customer, 90% of the U.S. population lives within 10 miles of one of our stores. So, it is an element of convenience to be able to come to one of our stores and pick up your groceries, not necessarily get the kids out of the car, if you don’t want to stop and pick it up versus waiting at home to get something delivered.”

Wish I had a crystal ball on food deflation

“Yes, I will start with the last part. I wish I had a crystal ball as to where we are with food deflation. It’s been in categories, some categories been around quite a while, meat and dairy specifically, been around quite a while. So, I’d hate to try to predict where that will go. Again, when you look at our assortment, we’ll have probably different opportunities than maybe some other retailers in that with GM and with food, you see different periods of time where you may have inflation in one category, deflation in other category. Food has been fairly significant and we call that out in our earnings releases, but it does give us I think a little better opportunity of how to work with that. ”

Haven’t seen a meaningful change in the consumer

“We haven’t seen a meaningful change in the consumer. I think the consumer generally is okay. There’s things that are working in his favor. whether it’s interest rates, fuel prices, unemployment rate, although that’s pretty favorable for the consumer, I think there’s still probably little bit of hesitancy and that stems even back from ‘09 and ‘10 when people remember a tougher time and that’s why you’re seeing the savings rate go up, you’re seeing people paying down debt. You continue to see a little bit of that. I wish I could predict what fuel prices would be six months from now and how the consumer might react to that. But we haven’t seen that dramatic of a change really in the past, and we’d assume that’s probably kind of where we’ll go in the future.”