Walmart Inc at Goldman Sachs Global Retailing Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kate McShane - Goldman Sachs - Analyst : So maybe to start, it would help, I think, to learn a little bit more about your background and what your current role is at Walmart?

Question: Kate McShane - Goldman Sachs - Analyst : That's great. Just given the marketplace that Walmart has changed a lot over the last few years, can you maybe walk us through a quick history of evolution of marketplace and where we are today?

Question: Kate McShane - Goldman Sachs - Analyst : So when you look across the industry, what are some of the key changes you've seen in the retail marketplaces over time? What is Walmart doing to differentiate itself amongst the other marketplaces? And how do you position yourself as a preferred partner to help navigate this?

Question: Kate McShane - Goldman Sachs - Analyst :

Question: Kate McShane - Goldman Sachs - Analyst : So when you think about marketplace and how quick it's growing, I think there was 30% growth each of the last four quarters, can you talk about what you prioritize in terms of your strategic initiatives? And what are the bigger drivers of that 30% growth right now?

Question: Kate McShane - Goldman Sachs - Analyst : And within that, I think it's pretty clear the value that you're providing for the sellers, what the sellers are doing for your customers? Is it wrong to ask or to think about the process by which you get sellers? Is that a still very important? And additionally, the 1P versus 3P experience for the shopper. I think in other examples, maybe you've noticed a difference. How are you making that a little bit more uniform? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 3:00PM, WMT.N - Walmart Inc at Goldman Sachs Global Retailing Conference

Question: Kate McShane - Goldman Sachs - Analyst : You mentioned the Marketplace seller Summit last week and there. For those of you that haven't seen it, there's a press release on walmart.com. It's a laundry list. It's a very intense list of things that you are introducing and some of which you talked to before. But how are you thinking about category expansion in general when it comes to Walmart marketplace. How much is maybe too much? How much is too little? How do you know when is the right time to roll some of these initiatives out?

Question: Kate McShane - Goldman Sachs - Analyst : And you mentioned before the interplay of marketplace with other businesses. And there are probably some sellers who can't or won't sell in marketplace until you're able to maybe handle their fulfillment. So can you maybe walk us through the relationship between Walmart Marketplace and Walmart fulfillment services? And then even the interplay for some of the other businesses like Walmart Connect.

Question: Kate McShane - Goldman Sachs - Analyst : And when it does come to fulfillment. Can you walk us through the build-out, including local multichannel and then even cross-border fulfillment. Is there still a build-out phase of this?

Question: Kate McShane - Goldman Sachs - Analyst : And then when it comes to the value proposition, how are you using Marketplace to reinforce Walmart's value proposition and everyday low prices through this broader assortment?

Question: Kate McShane - Goldman Sachs - Analyst : And how are you supporting marketplace from a marketing perspective? How are you letting your customers know that this is something you're offering? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 3:00PM, WMT.N - Walmart Inc at Goldman Sachs Global Retailing Conference

Question: Kate McShane - Goldman Sachs - Analyst : I think one of the most intriguing parts of marketplace when it comes to investor consideration is just what is contributing to the top line but also how we should think about it from a margin standpoint. So I wondered if you could talk to that a little bit.

Question: Kate McShane - Goldman Sachs - Analyst : And as a percentage of overall e-commerce, I mean, even with the growth that we've seen the last couple of quarters, I think e-commerce is still driven primarily by 1P. So what does the evolution of Marketplace ultimately look like in terms of its contribution to e-commerce in the future? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 3:00PM, WMT.N - Walmart Inc at Goldman Sachs Global Retailing Conference

Question: Kate McShane - Goldman Sachs - Analyst : Okay. And then when it comes to Walmart as a company working to grow operating income faster than sales, how does marketplace play a role in that?

Question: Kate McShane - Goldman Sachs - Analyst : Can you just talk a little bit about some of the risks that you're managing with regards to this as it sounds like everything is moving in the right direction. You're seeing this double-digit very strong growth. But what risks do you have to manage in the process?

Question: Kate McShane - Goldman Sachs - Analyst : And then for our last question, one thing that you mentioned was we've talked about all of kind of the interconnectedness between Fulfillment and Connect and there is even within the store, which you mentioned before. So I think we've seen digital signage in the store able to showcase items that people can get on marketplace through a QR code, for example. How are you envisioning that evolution of the store assortment with marketplace?

Question: Kate McShane - Goldman Sachs - Analyst : Great. Thank you so much for being with us today. We learned so much. Thank you.