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Time to Get Phygital to Drive Your Brand at Dollar General Time to stop “anniversarying” your Dollar General plan! On the fast growth track, Dollar General’s rapidly evolving – with digitally-savvy consumers, exciting tech stack and retail media upgrades, and new partnerships like Meta and Instacart. Market Performance Group Omni Commerce Acceleration VP Heather Campaign sat down with Bryan Gildenberg to talk about what it takes to drive omni commerce success at Dollar General -- and why marketers need to “Get Phygital” in their approach to consumer promotions, digital marketing, and P&L management. Building unified experiences is fast becoming table stakes here – those that connect the dots fastest across media, data, supply chains, supply and demand forecasting, and more win! For more insights on how MPG can help accelerate your omni commerce business in the value channel, reach out to Heather Campain at heather.campain@mpgllc.com Winning at Dollar General with the Right Data Approach & Focus How can data analytics and a category focus get you the win in the Value Channel? Market Performance Group Category Manager Lynne Stewart shared her insights with Bryan Gildenberg at a recent MPG expert panel event for suppliers on driving omni commerce success at Dollar General – now one of the country’s fastest-growing retailers. Lynne dives into the channel’s unique aspects, including: Analyzing performance through the buyer’s lens Why taking a different view to velocities will give you the true picture The right Dollar General customer segmentation approach Leaning into DGMN data and the rural shopper white space Why a category-building focus is critical in a limited SKU environment Interested in knowing more about how robust data and category approaches can help drive your business? Reach out to Lynne at lynne.stewart@mpgllc.com Insights on How to Accelerate Profitable Growth A vast number of retail doors. A limited SKU environment. A differentiated value proposition. And a unique consumer. Is the juice worth the squeeze for marketers looking to grow with Dollar General? Absolutely! Get the inside track from MPG President and former Dollar General Chief Merchant Jason Reiser on how to accelerate profitable growth in this specialized channel. Jason shares with Bryan Gildenberg his insights on: What you need to know about this customer’s behaviors Strategies to keep pricing right and stay profitable Watchouts, including the biggest mistake brands make For a conversation on what you can do to accelerate your business in the Value channel, drop a note below or reach out to Jason at Jason.reiser@mpgllc.com

Former J&J Executive Brings Significant Costco Expertise to New Role We are excited to announce that we continue to enhance our Club capabilities, naming former Johnson & Johnson (now Kenvue) Sales Executive Carla Pettigrew as Senior Director of Sales, effective immediately. Carla brings extensive leadership experience to the role, having driven significant sales growth and penetration for multiple businesses at Costco and the Warehouse Club channel for 20+ years. In her new position, Carla will lead MPG’s Costco Team, reporting to Jason Reiser, President, MPG Sales Strategy & Services. Her focus will include the development of strategic sales and marketing solutions in the Costco and Club channels that deliver profitable growth and positive P&L impact to MPG clients. MPG’s team of highly experienced retailer and manufacturer operators helps brands win at Costco through end-to-end capabilities, from click to cart. “We are excited to have Carla lead our MPG Team in this competitive channel. We have a keen focus on Costco, one of the most important retailers in the U.S., and we know that Carla’s deep relationships and strategic expertise will help our brand partners take the best path forward to deliver sustainable, profitable growth in Club,” says Reiser. “Her appointment is just the latest example of our commitment to support our clients with the top talent, service, client intimacy, and industry influence needed to ensure success in the rapidly evolving omnicommerce marketplace.” Carla has a long track record in developing strong relationships and smart strategic plans with retail partners. She knows what it takes to win at Costco, having led successful go-to-market and business development strategies for numerous brands in a broad range of categories, consistently exceeding annual sales goals. She is also skilled in identifying market opportunities for incremental product distribution, promotion, unique and differentiated products and packaging, new items, and value enhancement to drive sales and revenue growth.

“A few years back, when I was with Dollar General in the Chief Merchant seat, Fortune saw us as “a crafty mix of 7-Eleven-like convenience and Walmart-like low prices.” Yeah, but…that description doesn’t begin to do justice to the strong value-and-convenience proposition of the value channel – a proposition that’s put Dollar General and Dollar Tree/Family Dollar among the country’s fastest-growing retailers, with over 35,000 US stores and plans for more. What incredible reach! It should make every smart marketer pause and think hard about how to accelerate in this channel. Not only that, the Dollar class of trade is making strong inroads into Grocery. If I asked you to guess the fastest-growing US food retailers by share of household spend, what would you say? Walmart? Amazon? Nope. It’s our friends in Dollar. They’re seeing increased wallet share and more monthly visits than Grocery and Mass this year. So why don’t CPG marketers always view Dollar as a strategic, highly lucrative channel? Maybe it’s because of its unique challenges and opportunities. Like a vast number of doors. A limited SKU environment. Differentiated value proposition. Don’t be scared off. You can profitably create products, drive awareness, and convert more customers in this channel. All while keeping your shopper cost-to-serve down. How? Take a cue from some former merchants and current suppliers who recently shared their experience and insights at our recent omnicommerce excellence event for CPG leaders: Look through their core consumer’s lens. Cash-strapped with household income of less than $40,000, she’s been hit hard by inflation. Decreased SNAP benefits have cut nearly $100 in monthly grocery spending. She’s focused on essentials, foregoing discretionary goods like housewares and apparel. It’s absolutely critical that she sees high value in your product, or it will fail here. Know her motivations. Her shopping behaviors. Her paycheck cycle. And her evolving needs. Don’t just simply reapply strategies used in Grocery or Mass. It often takes customization of price pack architecture or other innovation to get to a more accessible price point for this shopper. Remember, these consumers are looking for low-priced essentials and will trade down in pack size to reduce weekly spending. Take a retailer category manager’s mindset and use robust data for storytelling that effectively positions and differentiates your product. Understand new opportunities like multi-tier value pricing, a mix of national brands and private label, and expanded refrigerated offerings. Where do you fit? Make sure you’re carefully analyzing all available market research to have the insights needed to know how your brand can best perform in this space -- with the right assortment, innovation and price. Take customized approaches to single-price point, multi-price point, and close-out retailers. When possible, use local demographics to inform specific store assortments and product mixes. Focus on P&L management. With limited SKU shelf and buying practices that generally don’t include bulk orders, dollar stores have a lot of buying muscle. To meet the challenge, think like a true joint business partner, collaborating on what’s needed for long-term profitability and growth for both parties. Explore new product category ideas that increase trip frequency and basket size. Partner to optimize supply chain and inventory management across thousands of doors. Don’t forget those higher-income Dollar shoppers who were pleased to discover quality brands at low prices during the pandemic. How can you work with your retail partner to promote stickiness and retention? Keep your eye on Digital Commerce, still in its early years here, but retailers are expanding their media networks to enable brand partners to better engage their consumers. My final tip: Ensure your team has strong channel-specific consumer, merchandising and supply chain expertise to ensure a strong partnership with retailers and strong returns on your investment in the channel. A CPG company recently reached out since they were suffering major profitability challenges in the channel. They’d tried numerous fixes and were resigned to walking away. We were able to dig deep to identify significant operating efficiencies and right-size their pricing, creating custom SKUs with high value for this shopper. The result? Their P&L dramatically improved in just six months. I may be biased given my experiences, but trust me, the Dollar channel will only continue to get stronger as it matures. It’s time to give it the strategic respect it deserves. Think, how can your team better use it in the future to reach your consumer and accelerate profitable growth? To join a future MPG “Driving OmniCommerce Retail Success” event for insights, contact: Pam Gaik at pam.gaik@mpgllc.com

By Colleen Mahoney, Sr. Media Manager, MPG OmniCommerce Instacart, a leading player that turned grocery shopping on its head in the pre-pandemic world, continues to gain popularity with CPG brands today. As one of the largest omnichannel eCommerce platforms out there, it’s partnering with over 5,500 brands – brands that are looking to connect directly at point of purchase – with a highly engaged user base of 600,000 shoppers. Yet many brands still ask, “Does it really need to be part of my retail media and marketing mix? Why invest ad dollars into Instacart, when our items are listed for free through our retailer partners?” Here’s why. Brands have a first-mover advantage on the Instacart platform. It’s a race to win your space in a new shopper’s basket before your competition -- because we know that by a customer's 10th order, 25% of all conversions on Instacart are from the 'your items' aisle made up of products a customer has purchased in the past. And at the same time, 20-30% of the basket comes from browsing recommendations – another clear opportunity for brands to capture consideration and trial on the platform. Amplifying your brand's visibility on Instacart through paid advertising tactics allows you to do just that. So YES! You want to see if incorporating Instacart into a multi-channel marketing approach makes sense for your brand. We know from our work with clients that the platform can be both effective and cost-effective, letting you tap into one advertising network to connect directly with shoppers across multiple retailers. Costs will vary depending on your brand’s goals, target audiences, and competitive set. For example, new products may need a more robust budget than established brands to push for reach. But Instacart does have the power to drive strong incremental lift and category growth – IF you have the right omnichannel strategy. So how do you win the Instacart Digital Shelf? First -- Recognize that a one-size-fits-all strategy doesn’t work here. Be sure to tailor your approach to promoting your products in a way that takes full advantage of Instacart’s platform offerings at each stage of the marketing funnel. Understand that Sponsored Search is the foundation. This pay-per-click live auction model allows you to bid on relevant, high-converting keywords to ensure your products appear at the top of search results, allowing you to secure premier placements on the digital shelf as you would aim for in the brick-and-mortar aisles. Make sure you understand how to maximize this tactic, which can be monitored and optimized in real-time or result in wasted spend if not managed properly. Then consider Featured Display. Feature your products or portfolio in search results, specific aisles or categories, or during check-out. This increases your visibility to potential customers throughout their entire shopping journey. Display ads also allow for audience targeting, remarketing, loyalty-building and more! Also think about Shoppable Video Display, an ad placement now available on-site right alongside instant ad-to-cart item functionality. Shoppable video is a great way to further amplify your brand awareness and product benefits with short, engaging video ads. And of course, don’t forget other core advertising opportunities, like Instacart-centric coupons and promotions, if promoting consideration and trial is at the forefront of your goals. Finally, ensure that your KPIs are the right ones. These can be very different depending on if your focus is on the new shopper or returning shopper. When it comes to winning on this digital shelf, the gold lies in getting into a new shopper’s online basket before your competition. A cohesive marketing strategy on the platform will help you get there. If you’d like to connect and talk about how to take your brand’s Instacart game to the next level, get in touch! For more insights, reach out to Colleen at colleen.mahoney@mpgllc.com. As a leading end-to-end, strategy & services omnichannel commerce agency, MPG is passionate about sharing best practices and charting the best PATH FORWARD for brands in the fast-changing omnichannel environment. Contact us to learn more >

“Innovate by starting with the customer and working backward.” That’s what Jeff Bezos says. Who wouldn’t agree? From new products to packaging to consumer experiences, you’ve got to walk in your customer’s shoes. Dig deep to understand what they really want and need. How they think. Why they act. Essentially, design thinking. Given today’s super-charged, omnicommerce environment, it’s no wonder that design thinking has become a major focus for forward-thinking organizations. In a marketplace where the bar of entry has never been lower, competition is fierce, with ankle-biters around every corner. Smart innovation is critical to staying competitive – critical to fueling increased share, revenue and customer satisfaction. But many companies are struggling with how to use design thinking in a way that quickly gets them to the finish line, moving new offerings out the door to success at shelf. Some face challenges of internal fiefdoms. Others are stymied by overly complex processes used by no one. Still others have taken the credo, “Innovation is everyone’s responsibility,” too literally, without the right tools in place to lead them to best bets. We’ve all been to numerous ideation workshops over the years, no? Great energy. Lots of brightly-colored Post-It Notes. Fast and furious writing on whiteboards. Ideas, ideas, ideas! And yet, without the right process, very little that sticks. Is “design thinking” more than just a buzzword? Can it really deliver? Yes, when done right. Research shows design-led companies can better respond to the turns of today’s dynamic environment and so see improved performance as a result. In fact, companies with an innovative culture are five times more likely to be successful than those without one. What makes for a successful path forward? First, don’t make it overly complicated. Yes, a disciplined process is needed, but it must be a usable tool. If it’s not simple, I guarantee it won’t be used. Then, explore positioning and innovation opportunities through six lenses: Consumer, Competition, Cultural Context, Science/Technology Environment, Retail Environment, and Brand Equity or Assets. Next, zone in on the top brand positioning territories, drawing inspiration from six trend areas: Control, Simplicity, Transparency, Customization, Engagement (Entertainment and Technical), and Shared Values. Throughout, ask, What opportunity gaps exist? How are potential consumers discovering and choosing products in this category? What’s the current brand perception among consumers, retailers and influencers? Are there close-in science or technology developments that may impact? To set the stage for successful innovation through smart design thinking: Don’t make assumptions about your target consumers! It's important to dig into not only their needs, but also their satisfactions, dissatisfactions, and feelings about competitive products to develop relevant positioning, an innovation pipeline and claim opportunities. Go through all your “stuff” (we all have “stuff,” don’t we?) – all of the data you can get your hands on, with an eye toward translating consumer and shopper insights into product and brand ideas. Make sure you’re also leveraging a keen understanding of the key dynamics of your particular category. The goal: Unearthing the rich, meaningful insights that are buried within. Re-think “new.” Being new to a consumer segment or a retail outlet can be “new”; every idea doesn’t need to be a disruptive revolution. Avoid being inauthentic. Don’t chase the “shiny penny” because it’s doing well NOW; have the courage to say no to an innovation if it doesn’t fit your brand. I like how Steve Jobs put it, “I’m as proud of many of the things we haven’t done as the things we have done. Innovation is saying no to a thousand things.” Avoid unconscious bias. Experience matters, but don’t stack your team only with “experts” in a specific category who’ve “seen it all”. Outside perspective offers necessary objectivity and takes you outside of your organization’s capabilities and beliefs. Create harmony between R&D, marketing and Sales. Every discipline has a valuable perspective, so involve all early and often. (And loop in legal/regulatory before you go too far down a path potentially leading to nowhere.) Ensure that your team includes specialists in consumer insights and brand strategy, with real-world insights that can help you answer: Who you can be (brand positioning), how you can organize (brand architecture), and where you can go with new product and claims innovation. Remember, creating “issue value” is often the driver for successful innovation. Sometimes, people don’t know why they need a product, but once made aware, they’re hooked. Set up for speed. Once the idea is identified, be prepared to run at lightning speed. In today’s crowded marketplace, parental heritage is no longer enough for a new offering to succeed. As Bezos said, innovate by starting with the customer and working backward. Smart design thinking can get you there. Think this could accelerate your innovation pipeline?

With 600+ Retail Media Networks today, each operating in a walled garden, many brands are finding it touch to determine where to put their money for best ROI. How can you evaluate performance across RMN partners? Which KPIs are most meaningful? What should we use to connect the dots between ad exposure and sales? Join IAB‘s Jeff Bustos, Andy Murray of BigQuest, MPG Omnicommerce Acceleration Lead Heather Campain, and Confluencer Commerce CEO Bryan Gildenberg as they share the latest thinking on what really counts today in retail media. Among the topics they’ll discuss: Are we getting closer to a standardized approach? How can we best evaluate performance across #RMN partners? What should we be using to connect the dots between #ad exposure and #sales? What should be the role of ROAS? How does incrementality help differentiate the effectiveness of an RMN? What’s needed from #brands, networks, agencies and adtech to better manage this complex ecosystem? As a leading end-to-end, strategy & services omnichannel commerce agency, MPG is passionate about sharing best practices and charting the best PATH FORWARD for brands in the fast-changing omnichannel environment. Contact us to learn more >

First, there was the “great resignation;” then came “quiet quitting.” And now we’re seeing the “quiet hiring” and “fractional hiring” trends build momentum as companies continue to struggle to fill critical talent gaps, and scale up or down as needed to meet changing business needs in a dynamic marketplace. The good news is that the labor market is strong. Very strong. In May alone, U.S. employers added 339,000 jobs. And the employee “quit rate”? That’s back down to pre-pandemic levels. Great, right? Yes, But maybe a little misleading. We also have 10 million+ job openings! Plus, it’s taking longer to hire – an average of 11 weeks to get the right candidate. And over a third of HR leaders say their recruiting strategies fall short when it comes to finding the skills they need. Not surprising, in a world where skills have a shelf life of less than two years. At the same time, as companies continue to beef up their employee retention efforts, they’re extending the duration of parental leaves – a good thing. But that’s also driving increased, intermittent talent gaps. On top of that, some organizations (yours?) are starting to put the brakes on headcount. What’s most disturbing to me? What we’re doing to our employees – our most important assets. I just saw a new report this week showing continuing high burnout rates among professionals in this country. Now a third to nearly half the workforce! With mounting business pressures, heavier-than-ever workloads and staff shortages, something’s got to give. We can’t keep stretching our high performers so thin. You can be sure their productivity is being affected. And their loyalty. They won’t hesitate to soon start looking for greener pastures. How, then, can we fill the gaps to keep the business on track without overwhelming our employees? And how can we achieve the work/life balance today’s employees are seeking - no, demanding? To beat the current talent challenge takes a one-two punch, in my view. First, we need to look at upskilling in critical areas. There’s no question this will be a win-win. Upskilling can support your team’s career growth while making your organization agile and future-ready. We’re seeing upskilling strategies work for many of our fastest-growing clients. And importantly, they’re coupling this approach with a second strategy – one that focuses on interim talent to take the pressure off and keep the business thriving. Over the many years we’ve supported clients in this area through our FleXforce® group, we’ve never seen higher demand for interim talent. In fact, temporary business management roles are up close to 20% from two years ago, according to the Bureau of Labor Statistics. This has been an especially effective strategy for clients who needed to keep go-to-market plans on track while key functional leads were out on extended leave. Also, in areas like Digital, where there is constant evolution, bringing in experienced interim talent has been a great way to not fall behind during critical times. And I’ve seen a number of start-ups punch above their weight, having had good success using “fractional hiring” to get the expertise they needed at the higher executive levels – contracting for a fraction of their time without breaking the bank with a full headcount. One watch-out to keep in mind: When hiring on an interim basis, make sure your candidates have the exact experience you need. And plenty of it. Someone with at least 15 years of operational experience. Someone prepared to onboard rapidly and jump in with both feet, so opportunities aren’t missed. There will always be market conditions that make upskilling and interim talent strategies right for a business, whether building a brand, generating an innovation pipeline, or creating a go-to-market strategy. But especially now, the marketplace needs strong, qualified and flexible talent. If there’s one thing we learned during the pandemic, it’s the importance of employing new and creative talent strategies to ensure our organizations can turn on a dime to maintain business continuity and meet the latest challenges of the day. So I ask, are you ready to add a new one-two punch into your talent strategy repertoire to keep your team off the ropes and take your business to new levels?

In this MPG Wrap Up, Bryan Gildenberg talks with MPG omnichannel leader Heather Campain to get her takeaways on the evolution of retail media measurement, and the need for end-to-end planning in the ever-evolving omnichannel marketplace. Subscribe to our YouTube channel for the latest from Market Performance Group.

A tough Q1 for Dollar Tree. Headlining today’s earnings call: Profits fell short of expectations. Full-year outlook was lowered -- given increased shrink, plus a shift to lower-margin consumables as consumers scaled back on discretionary spending. For a quick summary and our takeaways, take a peek at the MPG Dollar Tree Q1 2023 Earnings Recap. What’s next? How will these value channel shifts affect your strategy? Reach out to Courtney O’Grady for more insights that can help your business meet the challenges of today’s inflationary environment. KEY TAKEAWAYS Q1 earnings fell short of expectations, with quarterly profits coming in lower than expected Essentials & consumables continue to be key categories for Dollar Tree Inc., as consumers scale back on discretionary spending Full-year outlook has been reduced as a result of increased shrink, and a shift in the product mix to include more consumables, which carry a lower margin COMPARABLE STORE SALES COMPOSITION Traffic & Average Ticket Consumables & Discretionary CATEGORY MIX Category% of Net Sales OPERATING INCOME MARGIN Basis Point Change Year-over-Year COMPARABLE STORE SALES COMPOSITION Traffic & Average Ticket Consumables & Discretionary CATEGORY MIX Category% of Net Sales OPERATING INCOME MARGIN Basis Point Change Year-over-Year ADDITIONAL ARTICLES ''Dollar Tree missed Wall Street's earnings per share estimates but beat on revenue'' ''Dollar Tree stock sinks after missing on profit expectations'' ''Dollar Tree on Thursday trimmed its full-year profit forecast after missing quarterly profit estimates'' ''Shrink and a sales shift to lower-margin consumables pressure profits at Dollar Tree''

Dollar General Q1 results came in softer than expected, as Dollar General’s core consumers continue to cut back on discretionary spending. The company plans to scale back on new store openings and pOpshelf expansion. Check out MPG’s Dollar General Q1 2023 Earnings Recap for a quick summary and our takeaways. As the value channel continues to be impacted, how should you adjust your strategies? Reach out to Courtney O’Grady for more insights that can help in today’s inflationary environment. KEY TAKEAWAYS Q1 results came in softer than expected Consumables drove to the same store sales growth this quarter, as consumers continue to cut back on discretionary spending As a result of Q1 earnings, Dollar General is planning to scale back on new store openings for 2023 Q1 HIGHLIGHTS MARGIN CHALLENGES While margin saw a positive increase driven by higher inventory markups & lessened transit costs, it was offset by increased shrink, markdowns, damaged inventory & increased consumable sales POPSHELF EXPANSION Popshelf, which caters to higher-income, suburban consumers, may not open as many stores as planned in 2023 due to the slowing of discretionary spending CONSUMER SPENDING HABITS While DG's core consumer continues to cut back on discretionary spending, higher-income consumers are trading down, but not enough to drive them to dollar retailers “We are controlling what we can control and have made significant progress improving our execution on multiple fronts, including out supply chain recovery efforts and enhancements to the customer experience with our previously announced investment in incremental labor hours. In addition, we executed more than 800 real estate projects, including new store openings in our larger footprint Dollar General formats, which continue to outperform our expectations, and drive higher sales productivity compared to our traditional stores.” - Jeff Owen, CEO ADDITIONAL ARTICLES Dollar General slashed its full year outlook after missing Wall Street’s estimates on the top and bottom lines Even dollar stores are hurting as consumers get more cautious Dollar General prunes annual outlook as shoppers curb spending; shares slide Dollar General: No Longer Downturn-Proof

“Change before you have to,” former GE CEO Jack Welch always urged. Sound advice. I don’t have to tell you we’re in the midst of some seismic shifts that will drastically change the way we do business over the next decade. It’s already clear we need to shake up much of our current way of operating. Now. We’re very rapidly moving from a “mass” to “micro” retail mindset. And it’s all about the base – a radically different consumer base, that is. It’s a significantly more diverse base, as Deloitte tells us; while 75% of Baby Boomers were white, that percentage drops to about 50% with Gen Z. They’re also consumers who throw convention by the wayside, they’re delaying marriage, home ownership and children, and embracing work-from-home. They research before buying, and their social values often impact purchase. Not only that, where they buy is completely different. No wonder that while every major retailer at this year’s NACDS Annual was talking Omni, it means different things to different retailers and their consumers. Yet they’re all seeing ever-increasing levels of on-demand personalization. So, lots of new opportunities to market to microsegments of the market (and of course, significant new challenges on the supply side). Some things to think about: Hyper-personalization. We know personalized content’s an important driver for brand consideration and repurchase intent. As first-party data analytics and AI advance over the next few years, consider: Should I be using geotargeting and microsegmentation to tap into new growth opportunities? Is my organization prepared -- from both a technology and skillset perspective -- to take advantage of new opportunities for customized product recommendations, personalized email marketing and advertising? This type of communication also needs to be genuine and authentic, or risk being rejected. If not, it’s time to look at P&L to shift investments into technology and upskilling while developing a crisp strategic message. “Life is a journey to be experienced,” something this generation takes to heart. We all need to keep upping our game to provide compelling brand experiences. Look at how appropriate investments in Online, Augmented Reality and Virtual Reality technology may further increase engagement and value in the future. At Brick and Mortar, keep an eye on evolving in-store experiential advancements, like advanced interactive displays that may eventually be hyper-customized for loyalty customers. Ensure you’re fully utilizing the thing in everyone’s pocket, their smartphone! The age of AI is here. (Maybe you heard?) At every meeting, every trade show, AI inevitably comes up. It’s already changing retail and will continue to do so. Smart omni leaders are taking the time now to evaluate its future implications, from inventory management and supply chain operations, to pricing, to consumer loyalty and messaging. Don’t delay; this disruptor is already taking hold very fast! Supply 2.0. Manufacturers must be agile enough to deliver on the continually emerging, diverse needs of the new base. Legacy systems and processes just won’t be able to deliver. It’s time to see how you need to operate differently. Ensure you have real-time data for improved demand forecasting, with end-to-end transparency and risk monitoring to avoid shortages and overstocks, and ensure business continuity. Think about how you can “localize” your supply chain and deliver quickly. Retailers like Walmart, Albertsons and Best Buy are already transforming a percentage of their retail space into micro-fulfillment centers to fill online orders, as well as offering curbside pick-up. Expect this trend to continue. Do you have the advanced data needed to work efficiently in this complex distribution model? Take Revenue Growth Management (RGM) to the next level. Next-gen RGM strategies based on occasion and consumer need, supported by advanced analytics, will be critical. Take a long-term approach to pricing, promotion, price pack architecture, trade terms, distribution, and your new product pipeline. We help our clients to assess: Does our process have the agility and flexibility needed to respond quickly to external changes? Do our strategies present long-term margin opportunities? In the end, it’s all about the base and refocusing technology, data, analytics, supply and talent strategies to support their diverse and dynamic needs and wants. It’s more important than ever to “look around the corner” and strategize from a position of strength. I guess you could try to play it safe until it all shakes out, but that story probably doesn’t end well. Plan to stay ahead of the curve and change before you’re forced, to remain relevant and thrive in the future.

Walmart continues to win in grocery – seeing additional grocery market share gains this quarter and drawing in higher-income consumers looking to escape the rising costs of food. Ecommerce sales growth was also a bright spot. With our ears to the ground and eyes on the prize as always, we’ve recapped Walmart's Q1 Earnings Report for you here in this interactive and shareable format. Need a more in-depth idea of what's next for Walmart and beyond? Get in touch with Todd Matherly for more insights. MPG is here to be your No. 1 retail resource for all the challenges your team is facing. KEY TAKEAWAYS Q1 2024 total revenue was $152.3 billion, up 7.6% eCommerce growth was strong, (+27%) with pick-up/delivery and advertising driving growth The Walmart Connect advertising business continues to bring in impressive numbers, with 40% growth in Q1 24 Walmart continues to gain market share in grocery, including consumers from higher-income households EARNINGS AT A GLANCE Total revenue reached $152.3 billion with strength across all operating segments Negatively affected by $0.2billion for currency fluctuations eCommerce net sales up 26%, globally led by omnichannel, including pickup and delivery Strong growth in membership income, globally Other income negatively affected by a decline in sustainability income Comp sales +7.4% with strength in grocery and health & wellness, offset by softness in general merchandise Monthly comp sales growth moderated as the quarter progressed. Strength in food categories, private brand sales, and higher average ticket and store transactions Strong market share gains in grocery, including higher-income households Strong growth for eCommerce in store-fulfilled pickup and delivery as well as nearly 40% growth in advertising Q4 CATEGORY HIGHLIGHTS GROCERY Food sales continue to be strong as a result of increased market share. Food saw a low double-digit increase in inflation in Q1, up mid-20’s on a two-yr stack HEALTH & WELLNESS Pharmacy sales continue to be strong, driven by increased prescription counts, strong immunization, & a higher mix of branded & generic drug offerings GENERAL MERCH Sales continue to be soft in dis­cretionary categories, however automotive and seasonal cate­gories remained strong “We had a strong quarter. Comp sales were strong globally with eCommerce up 26%. We leveraged expenses, expanded operating margin, and grew profit ahead of sales. And a big thank you to our associates, who continue to step up and deliver for customers and members whenever and however they want to be served.” - Doug McMillan, CEO & President ADDITIONAL ARTICLES Walmart raises full-year guidance, as earnings beat on boost from grocery and online businesses Walmart Earnings Top Forecast With Grocery Sales Driving Gains; Stock Jumps Inflation-weary shoppers flock to Walmart Walmart stock rises on Q1 earnings beat, raised full-year forecast