Keeping Up With The Waltons; 2026 Annual Meeting Takeaways (Part I of II)

Research evidence excerpt

Keeping Up With The Waltons; 2026 Annual Meeting Takeaways (Part I of II)

June 5, 2026

(=) Digital Shelf Labels (DSL) Roll Out Completed by October 2026. The team expects to finish their digital shelf label

rollout to their stores by early 4Q26. There is still work to do to improve execution in some areas of the Supercenter,

like the end caps (testing new DSL formats here) and working on issues with bottom shelves in stores. But this should

drive material cost savings over time and make WMT nimbler in adjusting to price changes.

(+/-) CPG Price Increases Created Gap for WMT to Launch Better Goods. As CPGs have raised prices and private

label has remained relatively steady, the price gaps have widened, allowing BetterGoods to emerge as a competitor

(only 500 SKUs today but already on a $1bn run rate 2 years into launch, and did partially replace Sam's Choice).

(+) As Supply Chain Automation Initiatives Are Completed, Could There Be More Return of Capital? The supply

chain automation initiatives have been underway for more than 5 years, as the team has worked to bring products

directly from the truck to the shelf. With more than 60% of the supply chain automated, WMT could return even more

excess FCF to shareholders over time. While this isn't our base case, because WMT always invests with a LT mindset

(given Walton Family Ownership), this is something that investors should consider. With excess FCF, we think they

will prioritize reinvesting in the business through remodels and possibly new formats that allow WMT to expand into

different trade areas.

(+/=) Walmart Leaning into Share of Stomach Growth With Restaurant Delivery Announcement. The team

announced today that its Spark network of drivers would begin delivering orders from Subway restaurants in Walmart's