NACDS 2013 Annual Meeting

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Disclaimers The analyses and conclusions presented in this seminar represent the opinions of Kan- tar Retail. The views expressed do not necessarily reflect the views of the management of the retailer(s) under discussion.

This seminar is not endorsed or otherwise supported by the management of any of the companies covered during the course of the workshop or within the following slides. 2013 Participating Retailers

Ahold USA Medicine Shoppe International, Inc.

Alliance Boots Meijer, Inc.

The Bartell Drug Company Navarro Discount Pharmacies

BJ's Wholesale Club, Inc. 99 Cents Only StoresOMNICARE, INC.

CARE Pharmacies Cooperative, Inc. Pharmaca Integrative Pharmacy

Chain Drug Consortium, LLC Rexall Pharma Plus

Costco Wholesale dba Costco Pharmacies Rite Aid Corporation

CVS Caremark Corporation Roundy’s Supermarkets, Inc.

Dollar General Corp. Safeway Inc. drugstore.com Sam’s Club

Family Dollar Stores Sav-On Drugs

Farmacia Guadalajara S.A. de C.V. Schnuck Markets, Inc.

Farmatodo, C.A. Sears Holdings Corporation

Fruth Pharmacy 7-Eleven, Inc.

Genoa Healthcare Holdings, LLC Shoppers Drug Mart Corporation

Good Neighbor Pharmacy SUPERVALU INC.

H-E-B Target

Hannaford Bros., Co. Thriftway/Zitomer Drug

Health Mart Thrifty White Pharmacy

Hi-School Pharmacy Services LLC Topco Associates LLC

Hy-Vee Inc. Ulta Beauty

Implozia Pharmacy Network Wakefern Food Corp./ShopRite

Kerr Drug, Inc. Wal-Mart Stores, Inc.

Kinney Drugs, Inc. Walgreen Co.

Lewis Drugs, Inc. Walgreens Boots Alliance Development GmbH

London Drugs Limited Wegmans Food Markets, Inc.

source: NACDS Retail Trends

Are you talking to your accounts about these? Do you have a strategy? ƒƒRetailers are investing in store refurbishment, relocation, and acquisitions: Store portfolios- formats to address multiple shoppers rather than one store answering all needs ƒƒRetailers are investing in multichannel: Apps, websites, QR codes, mobile ƒƒHeightened focus on merchandising tactics: Creating and having relevant assortments; designing stores for shoppers rather than operations- enhanced use of elements like lighting, shelving, signage; segmentation of stores, shoppers ƒƒLoyalty program developments to increase shopper engagement ƒƒHealth and Wellness plays an important role throughout the merchandising and store development process: Assortment implications, opportunities, multichannel opportunies Having a Successful Conference

Saturday Must Attend Events Attire • “Meet the Retailer” program Attire for all NACDS events is resort • Strategic Exchange Appointments casual- except for the NACDS Luncheon, dinner, • Inaugural Attendees Orientation and entertainment. Attire for the NACDS lunch- • Opening Celebration eon on Monday is dressy daywear for ladies and Sunday Must Attend Events business for men. Attire for the Board of Direc- • Business Program I tors reception and dinner on Tuesday is cocktail • Strategic Exchange Appointments for ladies and business for men. Monday Must Attend Events • NACDS Chain Members & PAC Breakfast (Chain members, PAC tickets holders, invited guests only) • Strategic Exchange Appointments • NACDS Luncheon (spouses/companions, a ticketed event) Tuesday Must Attend Events • Business Program II • Strategic Exchange Appointments • Board of Directors Reception & Dinner • Board of Directors Awards & Entertainment

source: NACDS Having a Successful Conference

ƒƒStart early soliciting appointments – as much as three months in advance ƒƒDevelop a convincing proposition for each company as to why they will benefit from a meeting with you ƒƒEstablish an individually specific agenda for each meeting ƒƒMake sure you have done your homework on the retailer - Check out their website and learn as much as you can about them ƒƒDevelop a “one pager” summarizing the important points about your company, your key products, your point of difference, and any performance matrices that set you apart from the competition ƒƒConsider dropping an advance thank you for a planned meeting to remind the person of the appointment or an after-meeting thank you to recap what was accomplished ƒƒTake notes and follow-up after the meeting – this may be your most critical success factor

source: NACDS source: NACDS Participating Drug Retailers Alliance Boots

Key Initiatives ƒƒIn Aug 2012: Walgreens acquired 45% stake in Alliance Boots. Merger has created the largest global pharmacy led H&B retailer as well as the largest pharmaceutical wholesaler ƒƒTargeted procurement synergies amounting to $1 billion by 2016 (up from $100-150 million in 2012) ƒƒPotential investments towards geo-expansion in continental Europe & emerging markets ƒƒBest practice sharing from Walgreens around managing large scale supply chain and pharmacy cost optimization ƒƒExpansion of its wholesale business through acquisitions in Europe and partnerships/joint ventures in Asia and Middle East Key Players ƒƒStefano Pessina- Executive Chairman ƒƒOrnella Barra- Chief Executive, Pharmaceutical Wholesale Division ƒƒAlex Gourlay- Chief Executive, Health & Beauty Division ƒƒGeorge Fairweather- Group Finance Director ƒƒGregory Wasson- President and Chief Executive Officer, Walgreens ƒƒRobert Zimmerman- Senior Vice President & Chief Executive Officer, Walgreens ƒƒWade Miquelon- Executive Vice President & Chief Financial Officer, Walgreens

Stengths Weaknesses ƒƒIncreased negotiating power (procurement ƒƒPerceived as a costlier (premium priced) brand as savings) as a result of the merger compared to Superdrug ƒƒNo.1 H&B retailer in the UK aided by: ƒƒOver promotional–complicated/ complex ƒƒPharmacy-led business- high margin, footfalls ƒƒJaded marketing ƒƒMulti-format footprint ƒƒStore design – cramped ƒƒStrong brand perception – private label ƒƒWeak online business ƒƒSynergies driven through wholesale and business manufacturing divisions- vertical integration ƒƒLoyalty card (Advantage card)

Opportunities Threats ƒƒAvailability of more funds that can be channelled ƒƒIncreasing competition from grocers within towards international expansion beauty space ƒƒBest practice sharing from Walgreens especially ƒƒDeclining average revenue per prescription (due around managing supply chain, big format stores, to lower reimbursement prices on generic drugs) and pharmacy cost optimisation can erode growth & margin ƒƒFood business ƒƒLoyalty card challenged by the launch of Super ƒƒServices such as in-store surgeries drug ,Tesco, H&B range ƒƒManufacturing exports to international retailers ƒƒCrowded UK market - Limited ability to expand (such as Target, Carrefour, etc.) core high margin pharmacy business due to legislative restrictions Alliance Boots

Sales & Store Forecasts Sales (current USD millions)

Ma rket Format Banner 2007 2012e 2017e Ireland Drug with prescriptions Alliance Boots 368.3 357.7 401.9 Italy Drug with prescriptions Alliance Boots 40.0 44.0 48.4 Netherlands Drug with prescriptions Alliance Boots 294.2 241.6 268.9 Norway Drug with prescriptions Alliance Boots 590.5 646.2 683.5 Russia Drug with prescriptions Alliance Boots 4.0 4.6 5.1 Thailand Drug with prescriptions Alliance Boots 94.1 149.4 186.8 UK Drug no prescriptions Boots 1,001.6 222.3 227.2 UK Drug with prescriptions Boots 10,635.5 7,152.7 7,634.7 UK Drug with prescriptions Your Local Boots Pharmacy 80.0 2,272.3 2,440.7 UK Online Retail boots.com 232.1 415.4 653.1 UK Other Category Specialist Boots Optician 367.1 514.3 625.9 UK Other Category Specialist D&A - 18.5 -

Store Forecasts

Ma rket Format Banner 2007 2012e 2017e Ireland Drug with prescriptions Alliance Boots 48 73 78 Italy Drug with prescriptions Alliance Boots 21 20 20 Netherlands Drug with prescriptions Alliance Boots 78 73 74 Norway Drug with prescriptions Alliance Boots 148 156 164 Russia Drug with prescriptions Alliance Boots 14 7 8 Thailand Drug with prescriptions Alliance Boots 141 218 264 UK Drug no prescriptions Boots 267 85 86 UK Drug with prescriptions Boots 2301 1410 1431 UK Drug with prescriptions Your Local Boots Pharmacy 50 990 1012 UK Other Category Specialist Boots Optician 142 576 655 UK Other Category Specialist D&A 50

Merchandising & Marketing

Analyzing card data In-store advan- drives loyalty and tage card readers frequency through promote prod- price promotions on ucts with reward products linked to loyalty points individual shoppers Bartell Drugs

Key Initiatives ƒƒNew, customer-friendly website introduced ƒƒConvenient in-store health care awareness programs and services ƒƒState of the art in-store and online digital services ƒƒCommitment to community ƒƒEnvironmental leadership Key Players ƒƒGeorge D. Bartell - Chairman and CEO ƒƒJean Bartell Barber - Vice-Chairman and CFO Retailer At-A-Glance ƒƒDate Founded: 1890 ƒƒNumber of stores/Operating area: 58 stores located in Washington (King, Snohomish and Pierce counties) ƒƒOwnership: Privately owned & operated by the Bartell family of Seattle. George D. Bartell, Chairman and CEO; Jean Bartell Barber, Vice-Chairman and CFO. ƒƒEmployees: 1,700 Employee Associates, all located in the Puget Sound region. ƒƒNotable: The company has only had three presidents, all members of the Bartell family, spanning three centuries of operation. ƒƒWebsite: Bartell Drugs introduced a completely redesigned website in January 2012. The easy-to-navigate site offers health & wellness resources, express prescription refills, digital photo orders, current sale and coupon offers, social media sharing and community involvement and store locator assistance. Sales & Store Forecasts

Sales in USD, 07 - '12E 12E - '17E 2007 2012E 2017E millions CAGR CAGR

TOTAL USA 368 423.02 473.48 2.83% 2.28%

07 - '12E 12E - '17E # of Stores 2007 2012E 2017E CAGR CAGR TOTAL Bartell Drugs USA 56 58 61 0.70% 1.01% Merchandising & Marketing CVS

Key Initiatives ƒƒDifferentiating Front Store: Personalization featuring ExtraCare; myCVS store clustering; differentiating private brands; converting existing customers ƒƒDriving Pharmacy Growth Through: WeCARE workflow and patient care excellence including pharmacist interventions to drive adherence and optimizing value of generics ƒƒGrowing Store Base & Building Growth Culture: Expand footprint, stores own sales to shift accountability for sales to the stores Key Players ƒƒLarry Merlo- President and CEO, CVS Caremark ƒƒDavid M. Denton- Executive VP and CFO, CVS Caremark ƒƒMark Cosby- Executive VP, CVS Caremark, President, CVS/Pharmacy ƒƒPer Lofberg- Executive VP, CVS Caremark, President, Caremark Pharmacy Services ƒƒTroyen Brennan, MD, MPH- Executive VP and Chief Medical Officer

Stengths Weaknesses ƒƒExtraCare loyalty card program ƒƒVariance in store base ƒƒConsumer-centric ƒƒInconsistent execution ƒƒOpen to new ideas and experimentation ƒƒMindshare shift – Caremark ƒƒFormat innovation ƒƒSilo’d organization ƒƒAcquisition and integration are core capabilities ƒƒLess convenient real estate tha Walgreens ƒƒStrong healthcare services portfolio: Caremark, ƒƒHigh mix of sales from pharmacy MinuteClinic ƒƒShare losses at acquired ƒƒOnline services and offerings ƒƒ Debt leverage

Opportunities Threats ƒƒIncrease use of loyalty card data ƒƒDirect competition with Walgreens ƒƒStore clustering initiative ƒƒIntensifying competitive pressure from alternative ƒƒConvenient health and beauty destination pharmacy formats (mass, grocery) ƒƒLeverage MinuteClinic ƒƒGrowth of small box formats. ƒƒGrowth of Pharmacy Services Segment ƒƒChanging the fill-in, top-up trip and further increase the need for differentiated destination ƒƒIncreased market share gains from Express branding Scripts/Walgreens dispute ƒƒRegulatory and economic conditions ƒƒHealthcare reform ƒƒAcquisition of Drogaria Onofre CVS

Sales & Store Forecasts

'07 - '12E '12E - '17E Retail Sales (USD Billions) 2007 2012E 2017E CAGR CAGR CVS 44.92 63.1 81.59 7.03% 5.27% Longs - 0.49 0.58 - 3.43% Pharmacare 0.14 0.21 0.39 8.45% 13.18% TOTAL DRUGSTORE 45.07 63.8 82.55 7.20% 5.29% cvs.com 0.16 0.35 0.79 16.95% 17.68% TOTAL CVS USA 45.23 64.14 83.35 7.24% 5.38%

'07 - '17E '07 - '17E Banner 2007 2012E 2017E CAGR CAGR CVS 6,245 7,435 8,122 3.5% 1.8% Longs - 50 55 - 1.9% Pharmacare 56 31 31 -11.2% 0.0% TOTAL US Stores 6,301 7,516 8,208 3.6% 1.8%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top 25 Retailers Shopped during Past Four Weeks by Monthly CVS/Pharmacy Shoppers

Total 883 CVS/Pharmacy 100% Staples 26% Amazon.com 58% Dollar General 26% Walmart Supercenter 53% Michaels 25% Target GM 41% Barnes & Noble 25% Kohl’s 40% eBay.com 25% The Home Depot 38% Netflix 23% Walgreens 38% Kmart/Big Kmart 23% Macy’s 35% Hallmark 23% Dollar Tree 34% Sears 22% Lowe’s 32% Costco 22% JCPenney 32% Trader Joe’s 22% Best Buy 32% Rite Aid 21% Bed Bath & Beyond 29% Old Navy 20% Source: Kantar Retail ShopperScape, Nov 2012 Kinney Drugs

Corporate Info Kinney Drugs is a leading pharmacy across New York State and Vermont. ƒƒKinney Drugs Value Card loyalty savings program ƒƒKinney Cares prescription savings plan Kinney Drugs is a leading pharmacy across New York State and Vermont. ƒƒCommitment to community ƒƒEnvironmental leadership

Key Players ƒƒJames Spencer- COO Kinney Drug Store Division ƒƒOwen W. Halloran, R.Ph.- SVP of Pharmacy ƒƒMichael Duteau, R.Ph.- VP of Pharmacy Procurement Operations ƒƒBridget-ann Hart, R.Ph.- President, Kinney ƒƒJeffrey A. Rorick- VP Information Services, CIO Healthcare Services ƒƒJohn Dyer- General Manager Healthcare Services ƒƒWayne C. Jone- VP of MIS ƒƒJames R. Wuest- VP of Marketing ƒƒStephen P. McCoy- EVP, C.F.O ƒƒRich McNulty- VP of Human Resources ƒƒDavid C. McClure- VP of Real Estate ƒƒRick Cognetti, Jr.- VP of Marketing and ƒƒCraig Painter- C.E.O and Chairman of the Board Merchandising ƒƒDavid Warner- President of ProAct ƒƒLew Kimball- VP of Corporate Asset Protection

Sales & Store Forecasts

Sales in millions 07 - '12E 12E - '17E 2007 2012E 2017E of US Dollar CAGR CAGR Kinney 653.23 821.82 1,011.58 4.7% 4.2%

07 - '12E 12E - '17E # of Stores 2007 2012E 2017E CAGR CAGR Kinney 91 94 104 0.7% 2.0%

Merchandising & Marketing

Kinney Drugs Value Card loyalty savings program Kinney Cares prescription savings plan Pharmaca

Key Initiatives ƒƒPrescription Services ƒƒProfessional Staff ƒƒProfessional Grade Supplements- i.e., Metagenics and Pure Encapsulation ƒƒNatural Beauty- i.e., high-quality brands available like Jurlique, Jane Iredale, Dr. Hauschka and many other Compact for Safe Cosmetics signers ƒƒOver-the-Counter MedicationsSustainable Philosophy- We believe that personal health is connected to environmental health. We ensure our stores are environmentally friendly by buying wind power offsets, installing recycled carpet and offering organic and sustainably harvested products. Key Players ƒƒMark Panzer- President and Chief Executive Officer ƒƒMichael Kruteck- Chief Financial Officer ƒƒLaura Coblentz- Vice President of Marketing and Innovation ƒƒStu Gratz- Vice President of Pharmacy Operations ƒƒDavid Janowicz- Vice President of Merchandising ƒƒDon Summerfield- Vice President of Integrative Medicine ƒƒAllison Janda- Vice President of Retail Store Operations Sales & Store Forecasts

Sales in millions of US '07 - '12E '12E - '17E 2007 2012E 2017E Dollar CAGR CAGR Pharmaca 72.08 104.59 132.62 7.7% 4.9% TOTAL USA 72.08 104.59 132.62 7.7% 4.9%

07 - '12E 12E - '17E # of Stores 2007 2012E 2017E CAGR CAGR Pharmaca 22 24 28 1.8% 3.1% TOTAL USA 22 24 28 1.8% 3.1%

Merchandising & Marketing Rexall

Key Initiatives ƒƒPrescription Services ƒƒProfessional Staff ƒƒProfessional Grade Supplements- i.e., Metagenics and Pure Encapsulation ƒƒNatural Beauty- i.e., high-quality brands available like Jurlique, Jane Iredale, Dr. Hauschka and many other Compact for Safe Cosmetics signers ƒƒOver-the-Counter MedicationsSustainable Philosophy- We believe that personal health is connected to environmental health. We ensure our stores are environmentally friendly by buying wind power offsets, installing recycled carpet and offering organic and sustainably harvested products. Key Players ƒƒMark Panzer- President and Chief Executive Officer ƒƒMichael Kruteck- Chief Financial Officer ƒƒLaura Coblentz- Vice President of Marketing and Innovation ƒƒStu Gratz- Vice President of Pharmacy Operations ƒƒDavid Janowicz- Vice President of Merchandising ƒƒDon Summerfield- Vice President of Integrative Medicine ƒƒAllison Janda- Vice President of Retail Store Operations

Stengths Weaknesses ƒƒExperience in the market ƒƒVaried store conditions ƒƒMail-order pharmacy ƒƒOver-indexing on elderly shoppers ƒƒKatz’s ProPharm ƒƒOver-reliance on the pharmacy first proposition ƒƒTrusted, community-oriented provider ƒƒUnder-development of higher margin and trip ƒƒRexall private label driving categories (beauty, food) ƒƒLacking loyalty card, underdeveloped customer data program Opportunities Threats ƒƒExpand private label ƒƒRegulation – margin pressure ƒƒFurther expand health services, role of the ƒƒIncreased competition from outside of channel pharmacist (e.g., Walmart, Loblaw, Target) ƒƒReal estate acquisitions – broaden domestic ƒƒLoss of relevance with younger shoppers presence ƒƒeCommerce ƒƒAdvance customer insights ƒƒServing aging Boomers Rexall

Sales & Store Forecasts

Sales (CND) Sales (CND Billions) CAGR Continent\Country Retailer Banner (2007 - (2012E- 2007 2012E 2017E 2012E) 2017E)

North America\Canada Katz Group (The) Drug Trading $1.65 n/a n/a

North America\Canada Katz Group (The) Medicine Shoppe $0.12 n/a n/a

North America\Canada Katz Group (The) Pharmx Rexall $2.06 $2.97 $3.81 7.6% 5.1%

Store counts Stores CAGR Continent\Country Retailer Banner (2007 - (2012E- 2007 2012E 2017E 2012E) 2017E)

North America\Canada Katz Group (The) Drug Trading 645 - - n/a n/a

North America\Canada Katz Group (The) Medicine Shoppe 128 - - n/a n/a

North America\Canada Katz Group (The) Pharmx Rexall 670 900 1000 6.1% 2.1%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Past 4-Week Rexall/IDA/ Grocery/HBA Pharma Plus Shopper Penetration Total 10% Male 9%

Gender Female 10% 18-34 yrs 8% 35-54 yrs 9% Age 55+ yrs 12% <$35k 7% $35k-$79k 9%

Income $80k+ 14% Single 11% Married 12% Status Marital ƒƒFeaturing Air Miles Cash on end-cap Other 6% ƒƒRexall marketing its “Save $2” on Rx co-pay on Ontario ƒƒNew Be. better private label brand Source: TNS ƒƒCompare and save with private label shelf tag Canada. Read as: of the male respondents, 9% shopped at Rexall/ IDA/PharmaPlus in the past 4 weeks Rite Aid Key Initiatives ƒƒGrowth of Wellness+ ƒƒInvesting in best-performing stores ƒƒContinuing to find inefficiencies ƒƒExpanding health care offering ƒƒImprove customer service

Key Players ƒƒJohn T. Standley- Chairman, President and CEO ƒƒDavid Kelly- SVP, Store Development ƒƒKen Martindale- Senior EVP & COO ƒƒJohn Learish- SVP, Marketing ƒƒFrank Vitrano- Senior EVP, CFO & CAO ƒƒWilson A Lester, Jr- SVP, Supply Chain ƒƒTony Montini- EVP, Merchandising ƒƒDaniel Miller- SVP, Pharmacy Operations ƒƒRobert I. Thompson- EVP, Pharmacy ƒƒJon Olson- SVP, Merchandising ƒƒRobert (Bob) K. Thompson- EVP, Store Operations ƒƒBill Bergin- Group Vice President, Category ƒƒChristopher Hall- SVP, Pharmacy Services Management ƒƒSusan Henderson- SVP & Chief Communications ƒƒErnie Richardsen- Group Vice President, Officer Pharmaceutical Purchasing and Clinical Services

Stengths Weaknesses ƒƒNumber three chain, leading East Coast presence ƒƒLess convenient real-estate ƒƒSeasoned mgmt team ƒƒLack #1 or #2 share in many markets ƒƒRelationships with customers, Rx focus ƒƒSales productivity (FE & Rx) ƒƒHealth condition marketing platforms ƒƒWeaker credit profile ƒƒCollaborative vendor relationships ƒƒInconsistent operational execution ƒƒStrategic partnerships with GNC, McKesson, ƒƒUnderdeveloped healthcare strategy, pricing and Lindora etc. promotional strategy ƒƒWellness store format ƒƒWellness+ Loyalty program Opportunities Threats ƒƒUp-side opportunity to close sales and ƒƒExposure to economic, industry and competitive profitability gap with peers pressures ƒƒMarket share gains from the Express Scripts/ ƒƒPressure on Rx margins Walgreens split ƒƒMore direct and intense competition ƒƒMix of male and ethnic shoppers ƒƒFailure to grow store base ƒƒWellness+ Loyalty Program ƒƒStaffing – both front-end and pharmacy ƒƒRetain shoppers gained during the Walgreens/ ƒƒFailure to meet customer expectations Express Script dispute ƒƒLow Rx volumes (further erosion) ƒƒWellness store remodels ƒƒMobile and Ecommerce expansion Rite Aid Sales & Store Forecasts

Sales in billions '07 - '12E '12E - '17E 2007 2012E 2017E of US Dollar CAGR CAGR Rite Aid 26.44 25.18 26.4 -0.97% 0.95%

TOTAL USA 26.44 25.18 26.4 -0.97% 0.95% '07 - '12E '12E - '17E # of Stores 2007 2012E 2017E CAGR CAGR Rite Aid 5,059 4,609 4,525 -1.85% -0.37% TOTAL USA 5,059 4,609 4,525 -1.85% -0.37%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Rite Aid Shopper Cross-Shopping in Drug Channel (Q3 2012)

CVS/pharmacy 45%*

Walgreens 40%

Read as: 45% of Rite Aid shoppers also shop at CVS Top 5 Retailers Outside Drug Channel Cross- Shopped by Rite Aid Shoppers (Q3 2012) Walmart/Walmart Supercenter 64%*

Amazon.com 56%

Target/SuperTarget 50%

The Home Depot 39%

Dollar Tree 37% Read as: 64% of Rite Aid shoppers also shop at Walmart

Source: Kantar Retail ShopperScape®, July-September 2012 Shoppers Drug Mart Key Initiatives ƒƒPharmacy ƒƒFront End ƒƒSeniors ƒƒBeauty ƒƒConsolidation/Expansions ƒƒCategory Mgmt ƒƒLong-term care/Specialty ƒƒPromotion Optimization / Optimum ƒƒServices- Scope of practice ƒƒNew Services

Key Players ƒƒDomenic Pilla- President & Chief Executive Officer ƒƒPaul Damiani- Executive Vice-President, Operations ƒƒDorian Lo- Executive Vice-President, Pharmacy and Healthcare ƒƒBradley Lukow- Executive Vice-President & Chief Financial Officer ƒƒMichael Motz- Chief Merchandising Officer ƒƒMary-Alice VuicicChief Administrative Officer & Executive Vice-President, Human Resources ƒƒFrank Pedinelli- Senior Vice-President, Legal Affairs & General Counsel

Stengths Weaknesses ƒƒStrong brand, loyal shopper base ƒƒValue perception on consumables ƒƒBroad store presence, convenience trip ƒƒSupply chain and backroom problems on high ƒƒPrivate label strength velocity SKUs, out-of-stocks ƒƒOptimum loyalty card program ƒƒHigh mix of sales from pharmacy ƒƒAuthority in high-end beauty, wellness ƒƒInconsistent store execution ƒƒMerchandising, in-store aesthetics Opportunities Threats ƒƒGeographic store growth (i.e. QC, BC) ƒƒReliance on Pharmacist operators in franchise ƒƒWithin channel competitors struggling – model may limit flexibility acquisition opportunity ƒƒRising competition (i.e., Walmart, Loblaw, Target) ƒƒFurther diversify formats – Simply Pharmacy, ƒƒAdded margin pressure from government Home Health Care, etc. regulations, drug reform ƒƒExpand services – financial products, the role of ƒƒOver-indexing on private label vs. national brands the Pharmacist at the expense of the basket, trip ƒƒServing the aging population ƒƒEconomic uncertainty, cautious consumers ƒƒEcommerce development, particularly for beauty Shoppers Drug Mart

Sales & Store Forecasts Sales Sales (CND Billions) CAGR Country Retailer Banner (2007 - (2012E- 2007 2012E 2017E 2012E) 2017E) Canada Drugstore no prescriptions Shoppers Home Health Care $0.48 $0.49 $0.52 0.3% 1.3%

Canada Drugstore with prescriptions Paragon Pharmacy $0.07 $0.08 n/a 3.4%

Canada Drugstore with prescriptions Pharmaprix $0.98 $1.42 $1.74 7.9% 4.1%

Canada Drugstore with prescriptions Shoppers Drug Mart $7.02 $8.39 $10.30 3.6% 4.2%

Canada Drugstore with prescriptions Shoppers Simply Pharmacy $0.44 $0.61 n/a 7.0%

Canada Health & Beauty Specialist Murale - $0.05 $0.05 n/a 2.4% Stores

Stores CAGR Country Retailer Banner (2007 - (2012E- 2007 2012E 2017E 2012E) 2017E)

Canada Drugstore no prescriptions Shoppers Home Health Care 64 62 62 -0.6% 0.0%

Canada Drugstore with prescriptions Paragon Pharmacy - 19 19 n/a 0.0%

Canada Drugstore with prescriptions Pharmaprix 129 180 202 6.9% 2.3%

Canada Drugstore with prescriptions Shoppers Drug Mart 928 1060 1106 2.7% 0.9%

Canada Drugstore with prescriptions Shoppers Simply Pharmacy - 55 74 n/a 6.1%

Canada Health & Beauty Specialist Murale - 6 6 n/a 0.0%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Past 4-Week Shoppers Grocery/HBA Drug Mart / Shopper Penetration PHARMAPR IX Total 43% Male 40% Female 45% Gender 18-35 yrs 40% 35-54 yrs 43%

Age 55 yrs 43% <%35k 33% $35k-$79k 43%

Income $80k+ 51% Single 39% Married 46%

Marital Status Other 41% Thrifty White Pharmacy

Corportate Info + Services Employee owned pharmacy operating in Montana, North Dakota, Minnesota, Wisconsin, and Iowa Mission Statement:Long term assets: ƒƒOur customer ƒƒOur employee owners “We will operate in an ƒƒWe will provide for the health care needs of our customers through: environment where our ƒƒProfessional pharmacy services employees can learn, ƒƒQuality products grow, and prosper” ƒƒUnique and innovative practices ƒƒ Services ƒƒMed Synch synchronizes prescription refill service ƒƒHealthy Pack Rx organizes all scripts into individual packets labeled with all medications, date and time to be taken ƒƒReady Refill auto prescription refill service ƒƒMedication Therapy Management ƒƒPet medications ƒƒPhoto printing ƒƒShopper rewards card ƒƒPrescription savings club

Sales & Store Forecasts

Sales in millions of '07 - '12E '12E - '17E 2007 2012E 2017E US Dollar CAGR CAGR Thrifty White 302.85 383.47 418.39 4.8% 1.8% TOTAL USA 302.85 383.47 418.39 4.8% 1.8% '07 - '12E '12E - '17E # of Stores 2007 2012E 2017E CAGR CAGR Thrifty White 68 83 87 4.1% 1.0% TOTAL USA 68 83 87 4.1% 1.0% Ulta

Key Initiatives ƒƒGrowth StrategyAccelerate pace of new store expansion – 1,200 store plan for the U.S. ƒƒExpanded square footage by 16% in 2011 ƒƒ2011 comps of 10.9% ƒƒContinue to expand offering with new products, services and brands ƒƒEnhance loyalty program ƒƒ9 million active members ƒƒULTAmate Rewards is the new program being rolled out ƒƒTailored one-on-one initiatives to customers ƒƒBroaden marketing reach ƒƒIncrease focus on ULTA.com to support multichannel Key Players ƒƒChuck Rubin- President and Chief Executive Officer ƒƒScott Settersten- Chief Financial Officer & Assistant Secretary ƒƒRobert S. Guttman- Senior Vice President, General Counsel & Secretary ƒƒJanet TaakeSenior- Vice President, Merchandising ƒƒCynthia PayneSenior- Vice President, Store Operations ƒƒ Vincent A. Scarfone- Senior Vice President, Human Resources ƒƒJeffrey Severts- Senior Vice President, Marketing Sales & Store Forecasts

07 - '12E 12E - '17E Sales in millions of US Dollar Banner 2007 2012E 2017E CAGR CAGR

Health and Beauty Specialist Ulta 908.2 2102.3 3975.4 18.3% 13.6% Mail Order Ulta 1.7 2.0 2.2 2.9% 2.6% Online Retail ulta.com 2.2 8.4 29.0 29.2% 29.2% TOTAL USA 912.14 2,112.66 4,006.60 18.29% 13.66%

07 - '12E 12E - '17E # of Stores Banner 2007 2012E 2017E CAGR CAGR

Health and Beauty Specialist Ulta 249 539 884 16.7% 10.4% TOTAL USA 249 539 884 16.7% 10.4% Walgreens Key Initiatives ƒƒDelivering the Well Experience- Converting stores to the Well Experience, expanding flagship and food oasis stores, growing other mediums like mobile and online, expanding Balance Rewards ƒƒTransforming Community Pharmacy- Expanding the role of pharmacists in healthcare, growing clinic services ƒƒCreating an Unprecedented Global Platform- Leveraging Alliance Boots partnership, capitalizing on growing generic market and demand for health & wellbeing product Key Players ƒƒSona Chawla- President, E-Commerce ƒƒBryan Pugh- VP Well Experience Deployment, Merchandising team lead since Magnacca’s departure ƒƒGraham Atkinson- SVP, Chief Customer Experience Officer, Leads Balance Rewards ƒƒWade Miquelon- EVP, CFO, President, International, Leads Value Creation Services and International Division, On Alliance Boots board of directors ƒƒRobert Zimmerman- SVP of International & International Chief Administration Officer, Leads Global Mergers & Acquisitions “synergy team,” On Alliance Boots board of directors ƒƒStefano Pessina- Executive Chairman of Alliance Boots, Serves on Walgreens board of directors

Stengths Weaknesses ƒƒBest-in-class real estate and systems ƒƒLimited price or competitive differentiation ƒƒMost convenient locations in U.S. ƒƒIn-store experience ƒƒDominant market share and iconic brand ƒƒLimited tools, data, and processes for obtaining ƒƒTrusted pharmacy shopper insights ƒƒIndustry-leading sales & asset productivity ƒƒSKU intensive, low inventory turn front-end assortment ƒƒOperational excellence ƒƒRx as proportion of sales (low margin) ƒƒHealthy cash and balance sheet position ƒƒStrong credit rating Opportunities Threats ƒƒAging of the population, growing demand for ƒƒSlowing economy healthcare products and services ƒƒIncreasing unemployment ƒƒRealignment of costs, cultures, and capabilities ƒƒDeclining script trends and utilization ƒƒFormat updates: Well Experience, food oasis, ƒƒSmall box hybrid formats flagship ƒƒMore direct competition from CVS ƒƒGrowth of E-Commerce ƒƒPressure on pharmacy reimbursement rates and ƒƒMulti-channel retailing with mobile apps and Web pricing model (AMP/AWP) Pickup ƒƒShortage of qualified stores managers, ƒƒExpansion into adjacent sectors of pharmacy and pharmacists, and nurse practitioners healthcare (specialty Rx) ƒƒLoss of Express Scripts business Walgreens Sales & Store Forecasts

07 - '12E 12E - '17E Sales in millions of US Dollar 2007 2012E 2017E CAGR CAGR TOTAL Puerto Rico 1,390.00 2,023.58 2,794.96 7.8% 6.7%

US Drugstore with prescriptions 50,065.23 64,444.00 79,878.14 5.2% 4.4% Online Retail - 955.79 1,791.67 - 13.4% TOTAL USA 50,065.23 65,399.79 81,669.80 5.5% 4.5%

07 - '12E 12E - '17E # of Stores 2007 2012E 2017E CAGR CAGR TOTAL Puerto Rico 63 113 123 12.4% 1.7% TOTAL USA 5,809 7,821 8,840 6.1% 2.5%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data Participating Grocery Retailers Ahold USA

Key Initiatives ƒƒ Continue to grow market share by executing targeted initiatives by division ƒƒ Focused on enhancing price image by monitoring key value items, executing targeted price investments, and having a multi-variable pricing and promotions engine. ƒƒ Investing in private label portfolio ƒƒ Continue to refresh stores to improve the shopping experience. ƒƒ Growth of its Peapod, online business. Key Players ƒƒJames McCann- Ahold USA COO ƒƒDon Sussman- New York Metro President ƒƒRick Herring- Giant Carlisle President ƒƒAnthony Hucker- Giant Landover President ƒƒJoe Kelly- New England President

Stengths Weaknesses ƒƒStrong brand recognition ƒƒHigh fixed cost investment per store (requires ƒƒStrong real estate in valuable markets very high ROI) ƒƒShare leader in core markets ƒƒPoor performance and market share in peripheral markets ƒƒHigh store productivity level ƒƒLack of clear differentiator ƒƒStrong management skills ƒƒPrivate label brands need continued development ƒƒIncreasingly competitive prices ƒƒBalanced growth strategy at corporate level ƒƒUse of in-store technology Opportunities Threats ƒƒContinued expansion of Peapod ƒƒGrowing presence of low-price competitors (i.e., ƒƒPartnership with EYC to build out shoppers Walmart) insights program ƒƒTraditional and new channel competition (limited- ƒƒGreater use of in-store technology assortment, warehouse clubs) ƒƒCenter store innovation programs ƒƒOther retailers’ greater focus on health and wellness. Ahold USA

Sales & Store Forecasts

Sales in millions of US Dollar 07 - '12E 12 - '17E Country Format Banner 2007 2012E 2017E CAGR CAGR USA Convenience Giant to Go - 11 30 - - USA Online Grocery Peapod 329 503 751 8.9% 8.3% USA Supermarket Giant Food 3,802.62 5,144.00 6,431.00 6.2% 4.6% USA Supermarket Giant MD 4,854.64 5,554.00 6,147.00 2.7% 2.0% USA Supermarket Martins Foodstores (VA) 504.38 1,045.00 1,118.00 15.7% 1.4% USA Supermarket Stop & Shop 11,474.32 13,664.69 16,085.64 3.6% 3.3% USA TOTAL Supermarket 20,635.96 25,407.69 29,781.64 4.2% 3.2% TOTAL USA 20,964.96 25,921.69 30,562.64 4.3% 3.3% # of Stores 07 - '12E 12 - '17E Country Format Banner 2007 2012E 2017E CAGR CAGR USA Convenience Giant to Go - 3 8 - - USA Online Grocery Peapod 0 0 0 USA Supermarket Giant Food 120 148 155 4.3% 0.9% USA Supermarket Giant MD 171 177 184 0.7% 0.8% USA Supermarket Martins Foodstores (VA) 25 52 52 15.8% 0.0% USA Supermarket Stop & Shop 389 404 418 0.8% 0.7% USA TOTAL Supermarket 705 781 809 2.1% 0.7% TOTAL USA 705 784 817 2.1% 0.8%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top 25 Retailers Shopped during Past 4 Weeks Monthly Ahold* Shoppers Total 3737 Ahold* 100% CVS/pharmacy 60% Amazon.com 55% Walmart/Walmart Supercenter 54% Target/SuperTarget 50% The Home Depot 38% Kohl's 37% Staples 34% Macy's 34% Liquor/Wine Stores 30% Low e's 29% Walgreens 29% Best Buy 28% Barnes & Noble 27% JCPenney 27% Rite Aid 26% Dollar Tree 26% Bed Bath & Beyond 25% BJ's Wholesale Club 24% Hallmark 23% eBay.com 22% Trader Joe's 21% Michaels 20% Other traditional supermarket/grocery store retailer not listed here (e.g., Basha's, Tops) 20% Costco 20% ShopRite 19%

*includes Stop & Shop, Giant Foods Source: Kantar Retail ShopperScape® Nov 2011 - Jan 2013 HEB

Key Initiatives ƒƒDevelop sophisticated marketing capabilities and a clearly defined brand. ƒƒCapitalizing on emerging health & wellness trends within the grocery channel. ƒƒContinue to push its value position through its “Compare our Prices to Anyone” campaign. ƒƒRelying more on customer loyalty in the face of increased competition. Focusing on tailoring stores and product assortment by market. Key Players ƒƒCharles Butt- CEO ƒƒMartin Otto- CFO ƒƒCraig Boyan- President & COO ƒƒScott McClelland- President, Houston/Central Market Division ƒƒSuzanne Wade- President, San Antonio Food & Drug Division

Stengths Weaknesses ƒƒStrong market share in Texas ƒƒConsumer insight strategy under-developed at ƒƒMarket expertise operational levels ƒƒStrong customer loyalty/brand recognition ƒƒCapital constrained (not public) ƒƒStrong presence in Hispanic segment ƒƒLess transparency of company’s performance and operations ƒƒInternational presence (stores in Mexico) ƒƒMost stores in Texas– risk not spread out if Texas ƒƒPrivately owned faces downturn ƒƒWillingness to experiment with new formats ƒƒCulture of innovation Opportunities Threats ƒƒFormat expansion (Central Market, Plus!, Joe V) ƒƒHigh levels of competition from highly skilled ƒƒIncreased penetration of Mexican market retailers ƒƒAdditional expansion within Texas ƒƒChallenged to move from ethnic expertise to local expertise (e.g., in Mexico) ƒƒIncreasing price optimization capabilities HEB

Sales & Store Forecasts

Sales in millions of US Dollar 07 - '12E '07 - '17E Country Format Banner 2007 2012E 2017E CAGR CAGR

USA Soft Discount Ltd Asst Grcy Joe Vs Smart Shop - 51.48 147.72 - - USA Supermarket Central Market 376.39 406.5 560.5 1.6% 6.6% USA Supermarket H-E-B 11,461.86 15,694.27 20,417.50 6.5% 5.4% USA Supermarket HEB Hybrid 66 310.4 362.9 36.3% 3.2% USA Supermarket HEB Plus 468 1,315.90 1,957.30 23.0% 8.3% USA Supermarket Mi Tienda 14.94 39.9 57.5 21.7% 7.6% USA Supermarket Pantry 255.52 - - - - USA TOTAL Supermarket 12,642.72 17,766.97 23,355.70 7.0% 5.6% TOTAL USA 12,642.72 17,818.46 23,503.42 7.1% 5.7% # of Stores 07 - '12E 12 - '17E Country Format Banner 2007 2012E 2017E CAGR CAGR

USA Soft Discount Ltd Asst Grcy Joe Vs Smart Shop - 6 12 - - USA Supermarket Central Market 8 9 11 2.4% 4.1% USA Supermarket H-E-B 253 266 282 1.0% 1.2% USA Supermarket HEB Hybrid 3 7 7 18.5% 0.0% USA Supermarket HEB Plus 15 32 47 16.4% 8.0% USA Supermarket Mi Tienda 1 2 2 14.9% 0.0% USA Supermarket Pantry 9 - - - - USA TOTAL Supermarket 289 316 349 1.8% 2.0% TOTAL USA 289 322 361 2.2% 2.3%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top 25 Retailers Shopped during Past 4 Weeks Monthly HEB* Shoppers Total 2014 HEB* 100% Walmart/Walmart Supercenter 77% Amazon.com 50% Walgreens 49% Target/SuperTarget 47% The Home Depot 38% CVS/pharmacy 34% Low e's 33% Dollar General 33% JCPenney 31% Kohl's 29% Best Buy 27% Sam's Club 27% Dollar Tree 26% Mac y 's 26% Family Dollar 24% Valero/Diamond Shamrock 24% Barnes & Noble 23% eBay.com 23% Office Depot 21% Bed Bath & Beyond 21% PetSmart 21% Netflix 20% Kroger/Kroger Marketplace/Kroger Fresh Fare 19% Sears 18% Shell 18%

*includes HEB,HEB Plus, Central Market Source: Kantar Retail ShopperScape® Nov 2011 - Jan 2013 Hy-Vee

Key Initiatives ƒƒFocus on its capital improvement plan which includes developing stores in new markets and renovating stores in existing locations. ƒƒReassert itself in certain categories in order to modernize and better fit its customer lifestyles. ƒƒPrivate label will play a larger role in marketing its value proposition. ƒƒContinue to grow its digital footprint by enhancing in-store technologies as well as grow its social media presence. ƒƒIncrease its health focus by participating in the “Healthiest State Initiative,” while providing services and programs that promote healthy living/healthy lifestyles. Key Players ƒƒJon Wendel- EVP West Division ƒƒRandall Edeker- Chairman & CEO ƒƒTom Watson-EVP East Division ƒƒMike Skokan- CFO ƒƒJay Marshall- President of Marketing & Merch ƒƒRon Taylor- EVP North Division

Sales & Store Forecasts

07 - '12E 12 - '17E Sales in millions of US Dollar Banner 2007 2012E 2017E CAGR CAGR Drugstore with prescriptions Hy Vee 228.8 325.34 373.88 7.3% 2.8% Supermarket Hy Vee 5,371.20 7,031.28 8,381.78 5.5% 3.6% TOTAL USA 5,600.00 7,356.62 8,755.66 5.6% 3.5% 07 - '12E 12 - '17E # of Stores Banner 2007 2012E 2017E CAGR CAGR Drugstore with prescriptions Hy Vee 35 45 47 5.2% 0.9% Supermarket Hy Vee 197 218 230 2.0% 1.1% TOTAL USA 232 263 277 2.5% 1.0%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top 25 Retailers Shopped during Past 4 Weeks

Monthly HyVee Shoppers Total 2402 Hy -V ee 100% Walmart/Walmart Supercenter 79% Target/SuperTarget 51% Amazon.com 50% Walgreens 49% Kohl's 41% JCPenney 36% Menard's 33% Dollar General 33% A LDI 27% Sam's Club 27% Best Buy 25% Kmart/Big Kmart 25% Dollar Tree 25% eBay.com 24% Low e's 23% QuikTrip 21% Barnes & Noble 21% The Home Depot 20% Hallmark 20% CVS/pharmacy 19% Netflix 16% Sears 16% Ace Hardw are 16% Personal Care/Beauty Retailers (e.g., Bath & Body Works, Sephora, The 15% Body Shop) Staples 15%

Source: Kantar Retail ShopperScape® Nov 2011 - Jan 2013 Meijer

Key Initiatives ƒƒLeveraging digital and online tools that allow Meijer to offer targeted deals and create a personalized shopping experience. ƒƒContinue to develop strategies that help promote Meijer’s commitment to offering healthy living solutions for its shoppers. ƒƒGrow its footprint in existing and new markets. ƒƒContinue to experiment with social media to push marketing messages.

Key Players ƒƒHank Meijer- Co-Chairman & CEO ƒƒMark Murray- Co-CEO ƒƒJim Walsh- CFO ƒƒJ.K. Symancyk- President ƒƒJanet Emerson- EVP of Retail Operations

Stengths Weaknesses ƒƒPrivately owned-longer term vision compared to ƒƒPrivate ownership constrains capital availability publicly owned retailers ƒƒSmaller company wields less leverage in global ƒƒStrong brand recognition and loyal customer base sourcing than larger competitors like Walmart ƒƒStrong track record of successful food operations ƒƒPrimary markets’ economies vulnerable to ƒƒPrime real estate locations declining base of manufacturing jobs, including the US automakers ƒƒStrong supply chain ƒƒMeijer has a defined EDLP strategy, but has ƒƒWill negotiate hard to get the right product at the multiple messages which may confuse shoppers right price ƒƒPrice leadership and strong value perception

Opportunities Threats ƒƒExperimentation with destination departments ƒƒCompetitive environment: Walmart, Costco, ƒƒFurther improve price perception in the market Kroger ƒƒFormat experimentation and innovation ƒƒShopability: Not as convenient to navigate ƒƒDevelop health and wellness theme ƒƒUndiversified business model ƒƒSenior management interaction with other best- ƒƒOperates unionized markets in-class privately owned grocers ƒƒLosing share of wallet due to changing economic ƒƒ Shopper data mining conditions and trends away from stock up trips ƒƒKnown as a promotional supercenter which conflicts with edlp strategy. Meijer

Sales & Store Forecasts

Sales in millions of US Dollar 07 - '12E 12 - '17E Country Format Banner 2007 2012E 2017E CAGR CAGR USA Online Grocery meijer.com 2.8 52.37 111.72 79.6% 16.4% USA Supercenter Meijer 13,560.00 15,824.00 18,383.10 3.1% 3.0% TOTAL USA 13,562.80 15,876.37 18,494.82 3.2% 3.1% # of Stores 07 - '12E 12 - '17E Country Format Banner 2007 2012E 2017E CAGR CAGR USA Online Grocery meijer.com 0 0 0 - - USA Supercenter Meijer 181 198 202 1.8% 0.4% TOTAL USA 181 198 202 1.8% 0.4%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top 25 Retailers Shopped during Past 4 Weeks Monthly Meijer Shoppers Total 2402 Meijer 100% Walmart/Walmart Supercenter 62% Amazon.com 52% Kroger/KrogerKohl's 49% Marketplace/Kroger Fresh 49% Walgreens 45% Target/SuperTarget 45% JCPenney 36% Dollar Tree 33% Low e's 32% Best Buy 31% The Home Depot 31% CVS/pharmacy 30% Speedw ay 29% Sam's Club 29% Dollar General 28% A LDI 27% Macy's 27% eBay.com 26% Menard's 26% Kmart/Big Kmart 25% Bed Bath & Beyond 24% Barnes & Noble 24% Hallmark 24% Staples 22% Family Dollar 22%

Source: Kantar Retail ShopperScape® Nov 2011 - Jan 2013 Safeway

Key Initiatives ƒƒDevelop a wellness platform aimed to grow ID sales and build Safeway’s brand. ƒƒExpanding its fuel, loyalty program to enhance its value proposition. ƒƒContinue to enhance its just for U digital saving platform to increase shopper loyalty. ƒƒRe-inventing the Lifestyle format by adding new innovative, merchandising initiatives on top of newly designed marketing and promotions.

Key Players ƒƒSteve Burd- Chairman & CEO (retiring May 2013-successor unknown) ƒƒRobert Edwards- President ƒƒPeter Bocian- EVP &CFO ƒƒDiane Dietz- EVP Chief Marketing Officer

Stengths Weaknesses ƒƒSignificant market share in major markets ƒƒProfitability issues ƒƒReal estate (locations) and high percentage of ƒƒMargins remain high stores are Lifestyle format ƒƒDeclines in traffic counts and basket size ƒƒStrong Corporate Brands program ƒƒNo clear strategic response to current sales ƒƒFinancially minded challenges ƒƒBlackhawk Network ƒƒFixed cost structure is high ƒƒSocial media/digital marketing competencies ƒƒCentralized merchandising strategy ƒƒUse of social media and digital marketing ƒƒExpansion markets under-perform relative to chain ƒƒPricing Image Opportunities Threats ƒƒContinued development of Optura• Price ƒƒCompetition from Walmart, Costco, Target, optimization Kroger, and more regional operators ƒƒAlternative growth engines (Blackhawk, Safeway ƒƒCompetitors’ shopper insight programs Health) ƒƒQuestionable long-term commitment to value- ƒƒThird-party distribution of private label items conscious shoppers ƒƒPrivate label development that aligns with ƒƒLabor disputes/talent retention shopper trends ƒƒContinued high price perception amongst ƒƒContinued expansion of online/digital platforms shoppers and growing online sales ƒƒContinued expansion in health initiatives Safeway

Sales & Store Forecasts

Sales in millions of US Dollar 07 - '12E 12 - '17E Banner 2007 2012E 2017E CAGR CAGR Safeway Canada 5,253.44 5,411.92 5,699.31 0.6% 1.0% TOTAL Canada 5,253.44 5,411.92 5,699.31 0.6% 1.0% safeway.com 79.76 562.65 2,738.97 47.8% 37.2% Great Alaska Tobacco Company 16.78 17.98 18.84 1.4% 0.9% Oaken Keg 58.27 7.96 8.31 -32.8% 0.9% TOTAL Other Category Specialist 75.05 25.93 27.15 -19.1% 0.9% Carrs 348.26 374.85 393.97 1.5% 1.0% Dominicks 2,258.41 1,814.62 1,450.67 -4.3% -4.4% Eagle 166.87 174.28 183.17 0.9% 1.0% Genuardi 1,106.47 - - - - Pak n Save 207.18 223.34 239.17 1.5% 1.4% Pavilions 680.06 701.99 696.34 0.6% -0.2% Randalls Food Markets 1,326.02 1,232.49 1,194.68 -1.5% -0.6% Safeway 22,960.52 23,635.51 24,507.69 0.6% 0.7% The Market - 28.37 31.35 - 2.0% To m Thumb 1,616.70 1,707.87 1,765.17 1.1% 0.7% Vons 5,471.45 5,332.21 5,491.65 -0.5% 0.6% TOTAL Supermarket 36,141.94 35,225.53 35,953.84 -0.5% 0.4% TOTAL USA 36,296.75 35,814.11 38,719.96 -0.3% 1.6% # of Stores 07 - '12E 12 - '17E Banner 2007 2012E 2017E CAGR CAGR Safeway Canada 222 222 219 0.0% -0.3% TOTAL Canada 222 222 219 0.0% -0.3% Great Alaska Tobacco Company 7 7 7 0.0% 0.0% Oaken Keg 8 1 1 -34.0% 0.0% TOTAL Other Category Specialist 15 8 8 -11.8% 0.0% Carrs 13 13 13 0.0% 0.0% Dominicks 82 64 53 -4.8% -3.7% Eagle 7 7 7 0.0% 0.0% Genuardi 42 - - - - Pak n Save 11 11 11 0.0% 0.0% Pavilions 30 31 29 0.7% -1.3% Randalls Food Markets 49 44 42 -2.1% -0.9% Safeway 943 919 917 -0.5% 0.0% The Market - 2 2 - 0.0% To m Thumb 63 66 65 0.9% -0.3% Vons 265 246 243 -1.5% -0.2% TOTAL Supermarket 1,505 1,403 1,382 -1.4% -0.3% TOTAL USA 1,520 1,411 1,390 -1.5% -0.3% Safeway

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top 25 Retailers Shopped during Past 4 Weeks Monthly Safeway* Shoppers Total 6273 Safew ay* 100% Amazon.com 56% Target/SuperTarget 54% Walmart/Walmart Supercenter 53% Cos tc o 42% Walgreens 41% The Home Depot 39% CVS/pharmacy 38% Kohl's 32% Mac y 's 32% Trader Joe's 31% JCPenney 29% Dollar Tree 29% Best Buy 27% Low e's 25% Bed Bath & Beyond 24% eBay.com 24% Barnes & Noble 24% Staples 23% Michaels 23% Albertsons 22% Rite Aid 22% Vons 21% Netflix 20% PetSmart 19% 7-Eleven 19%

*includes Safeway, Randalls, Dominick's, Tom Thumb, Vons Source: Kantar Retail ShopperScape® Nov 2011 - Jan 2013 Schnucks

Key Initiatives ƒƒExpansion via new store growth and single store acquisition ƒƒOffering value added services, i.e., cooking school, special order service, fuel rewards, recipe ideas, etc. ƒƒOffering full pharmacy services such as online refills, generic drugs, health screenings, immunizations ƒƒIn May 2012 it opened its first full-service standalone pharmacy on the site of the St. John’s Hospital in Springfield, Illinois ƒƒ“Piece of Mind Quality” initiative that highlights above standard food safety and quality guidelines pertaining to perishable categories ƒƒDevelopment and launch of Culinaria, hybrid urban grocery store combining an upscale experience and high end assortment with Schnucks pharmacy and HBA offer Key Players ƒƒScott C. Schnuck: Chairman of the Board and CEO ƒƒTodd R. Schnuck: President and COO ƒƒMark J. Schnuck: VP Shopping Center Development ƒƒEdwin H. Schnuck: Co-Founder ƒƒAnna Donovan Schnuck: Co-Founder ƒƒDavid Bell: CFO

Sales & Store Forecasts

Sales in millions 07 - '12E 12E - '17E 2007 2012E 2017E of US Dollar CAGR CAGR schnucks.com 32.26 59.55 122.94 13.04% 15.60% Hilander - 143.64 247.73 - 12% Logli 258.1 267.39 280.75 0.71% 0.98% Schnucks 2,043.11 2,198.85 2,056.35 1.48% -1.33% TOTAL Supermarket 2,301.21 2,609.88 2,584.83 2.55% -0.19% TOTAL USA 2,333.47 2,669.43 2,707.77 2.73% 0.29% 07 - '12E 12E - '17E # of Stores 2007 2012E 2017E CAGR CAGR Hilander - 6 8 - 6% Logli 5 5 5 0.00% 0.00% Schnucks 99 98 86 -0.20% -2.58% TOTAL USA 104 109 99 0.94% -1.91% SuperValu

Key Initiatives On 10 January 2013, Supervalu announced that it had entered an agreement to sell five of its traditional retail banners to Cerberus affiliate AB Acquisition LLC for approximately USD 3.3 billion. Additionally, a Cerberus- led investor consortium called Symphony Investors will conduct a tender offer on up to 30% of Supervalu’s outstanding common stock. Details are below: Sale of Retail Banners ƒƒThe retail banners to be sold to AB Acquisition LLC include Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market along with associated Osco and Sav-On in store pharmacies. ƒƒThe Albertsons banner will be recombined with existing Cerberus owned Albertsons LLC. ƒƒThese five banners, covering 877 stores, will comprise the New Albertsons, Inc. (NAI) entity. ƒƒTotal size of the transaction is approximately 3.2 billion ƒƒThe transaction is expected to close the week of March 18, 2013 Sale of Retail Banners ƒƒUpon completion of the sale, Supervalu will consist of its Independent Businesses segment, Save-A-Lot, and the Cub, Farm Fresh, Shoppers, Shop ‘n Save, and Hornbacher’s banners. ƒƒThe new Supervalu is expected to generate revenues of approximately USD 17 billion. Key Players ƒƒSam K. Duncan- Chief Executive Officer and President ƒƒMichael Moore- Executive Vice President, Chief Marketing Officer ƒƒJanel S. Haugarth- President Independent Business and Business Optimization ƒƒSantiago Roces- President and Chief Executive Officer Save-A-Lot ƒƒSherry M. Smith- Executive Vice President, Chief Financial Officer ƒƒ Kevin Holt- President, Supervalu Retail

Stengths Weaknesses ƒƒNational supply chain capabilities ƒƒLong standing financial constraints ƒƒKnowledge of distribution and logistics ƒƒPoor price/value message ƒƒLocal market relevance ƒƒRetail store systems integration ƒƒRelatively stronger performance at Save-A-Lot ƒƒHQ and divisional misalignment and Independent Businesses segment ƒƒCriticism of senior management ƒƒGreater store level autonomy ƒƒPoor cash flow Opportunities Threats ƒƒNew technology & analytic tools for store ƒƒDebt level remains high managers ƒƒStrong competition (in and outside of channel) ƒƒGrowing private label sophistication expanding in key markets ƒƒOngoing “value transformation” efforts ƒƒInconsistent management across all levels of ƒƒActionable insights from Project THOR initiative operations ƒƒRealigned senior management structure ƒƒContinuing difficulties with execution ƒƒDivestiture of assets should free up company to ƒƒDisruptive management changes adversely impact internal culture focus on core business units SuperValu

Sales & Store Forecasts

The New Albertsons

The Remaining Supervalu

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Percent of U.S. Households Shopped Supervalu1: 12% Top 5 Retailers Outside Supermarket Channel Cross-Shopped by Supervalu1 Shoppers (Q3 2012) Walmart/Walmart Supercenter 61%* Amazon.com 54% Target/SuperTarget 53% Walgreens 49% CVS/pharmacy 42% *Read as: 61% of Supervalu1 shoppers also shop at Walmart Supervalu1 Shopper Cross-Shopping in Supermarket Channel (Q3 2012) Safeway2 34%* Kroger3 26% Trader Joe’s 24% Whole Foods 18% *Read as: 34% of Supervalu1 shoppers also shop at a Safeway banner 1Includes Acme, Albertsons, Jewel, and Shaw’s banners 2Includes Dominick’s, Randalls, Safeway, Tom Thumb , and Vons banners 3Includes Dillons, Fry’s, King Soopers, Kroger, QFC, Ralphs, and Smith’s banners Wakefern (PriceRite + ShopRite) Key Initiatives Wakefern is committed to providing entrepreneurs and independent retailers with the necessary tools to succeed in a competitive market. This goal is especially vital to the independent grocer today as it becomes increasingly difficult to compete with multi-national chains. Wakefern’s core values - integrity, innovation and teamwork - provide a strong foundation upon which the company has built its business. Key Players ƒƒDavid Figurelli- President, ShopRite ƒƒJoseph Colalillo- Chairman and CEO Supermarkets, Inc. ƒƒJoseph Sheridan- President and COO ƒƒChris Lane- SVP, Non-Perishables ƒƒDouglas Wille- CFO ƒƒBill Mayo- SVP, Perishables ƒƒNeil Duffy- President, PriceRite Stengths Weaknesses ƒƒOwnership model allows for a high level of ƒƒOwnership model means in-store conditions can autonomy at the store vary widely by location ƒƒVery price competitive ƒƒLimited opportunities for partnering ƒƒStores have low operating expenses ƒƒPromotional programs tend to be basic ƒƒHigh velocity ƒƒExecution can be an issue ƒƒStrong brand clarity ƒƒCoordination can be a challenge ƒƒDivestiture of assets by competitors Opportunities Threats ƒƒGlut of commercial real estate makes for ƒƒShopper base exposed to economic downturn favorable expansion environment ƒƒCompetition from multiple channels ƒƒTailoring assortment to local shopper base ƒƒOperates in a crowded market ƒƒContinued development of co-branding efforts ƒƒOther value oriented, ethnic oriented retailers (e.g. Kashi)

ƒƒDivestiture of assets by competitors Top 25 Food Retailers Shopped During Past 4 Weeks by Monthly ShopRite Shoppers Merchandising, Marketing. & Monthly ShopRite Shoppers Kantar Retail ShopperScape® Total 2,908 ShopRite 100% CVS/pharmacy 53% Target GM 47% Walgreens 34% Walmart Supercenter 34% Walmart 30% Rite Aid 30% Stop & Shop 30% Dollar Tree 29% BJ's Wholesale Club 25% Kmart/Big Kmart 22% Costco 22% Waw a 22% Trader Joe's 19% 7-Eleven 18% Family Dollar 18% Pathmark 17% Dollar General 17% Whole Foods Market 15% A&P 13% A LDI 13% Sam's Club 12% A c me 11% Big Lots 10% Wegmans 10% Giant Foods 7% Source: Kantar Retail ShopperScape® Oct 2011 – Dec 2012 Wegmans Key Initiatives ƒƒEmphasize green and local initiatives by maintaining energy efficient stores and selling organic and eco- friendly products. ƒƒFocus on value image by clearly communicating edlp and consistent prices to shoppers. ƒƒOffer unique and exciting shopping experience through a European Open-Air Market format, SWAS concepts, wide-variety product mix, etc. ƒƒHeightened-levels of customer and in-store services. ƒƒStore growth opportunities in newly-entered and under developed markets. Key Players ƒƒDanny Wegman- CEO ƒƒColleen Wegman- President

Stengths Weaknesses ƒƒStrong local brand and loyal shoppers ƒƒStores not efficient to shop- huge footprint, hard ƒƒPeople: empowered, well-trained staff to get in and out quickly ƒƒExcellent customer service ƒƒSlow overall navigation ƒƒEDLP pricing strategy ƒƒMarginalized center store categories ƒƒOperating margin ~7.5% ƒƒHigh prices on prepared gourmet foods ƒƒTechnology: supply chain, Web ƒƒHigh volume per store: sales per square foot 50% higher than industry average ƒƒEmphasis on innovation Opportunities Threats ƒƒRoll out new ideas and test results to other stores ƒƒNumber of SKUs ƒƒExpand culinary education program ƒƒPrice competition from Walmart ƒƒEnhance wine and beer offering, educate ƒƒHigh-end prepared food competition from Whole shoppers about wine and food pairings Foods ƒƒData-driven shopper insight strategy ƒƒMacroeconomic uncertainty: EDLP relies on price stability Wegmans

Sales & Store Forecasts

Wakefern Sales (in USD millions) by Banner 07 - '12E 12E - '17E Banner 2012E 2013E 2014E 2015E 2016E 2017E CAGR CAGR PriceRite $ 1,230 $ 1,326 $ 1,407 $ 1,507 $ 1,604 $ 1,714 16.5% 6.9% ShopRite $12,370 $13,121 $13,842 $14,542 $15,200 $15,883 5.9% 5.1% shoprite.com $ 56 $ 80 $ 108 $ 140 $ 175 $ 216 36.7% 30.8% TOTAL $13,656 $14,527 $15,357 $16,189 $16,979 $17,813 6.70% 5.46%

Wakefern Stores by Banner 07 - '12E 12E - '17E Banner 2012E 2013E 2014E 2015E 2016E 2017E CAGR CAGR PriceRite 48 51 53 56 58 61 9.9% 4.9% ShopRite 252 256 261 267 271 275 3.9% 1.8% TOTAL 300 307 314 323 329 336 4.7% 2.3%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Shopped Retailer in the Past 4 Weeks Wegmans Total 1,620 Wegmans 100% Walmart 66% Amazon.com 57% Target 56% CVS/pharmacy 46% Rite Aid 32% Dollar Tree 32% Ahold 31% Walgreens 29% ALDI 24% Dollar General 24% BJ's Wholesale Club 24% Kmart/Big Kmart 22% Sam's Club 20% Costco 18% ShopRite 18% Family Dollar 18% Trader Joe's 17% 7-Eleven 16% Big Lots 15% Whole Foods Market 13% Safeway 11% Delhaize 8% Save-A-Lot 7% Supervalu 7% Shell 6% Source: Kantar Retail ShopperScape® October 2011 - December 2012 Participating Discount Retailers Dollar General Key Initiatives ƒƒCategory management ƒƒBeer & wine ƒƒPhase 5 expansion ƒƒPrivate label expansion ƒƒCooler additions ƒƒZone pricing ƒƒTobacco ƒƒOut-of-stock reduction

Key Players ƒƒRichard W. Dreiling- Chief Executive Officer and Chairman of the Board ƒƒDavid M. Tehle- Executive Vice President and Chief Financial Officer ƒƒJohn W. Flanigan- Executive Vice President, Global Supply Chain ƒƒSusan S. Lanigan- Executive Vice President, General Counsel ƒƒBob Ravener- Executive Vice President and Chief People Officer ƒƒGregory A. Sparks- Executive Vice President, Store Operations ƒƒTodd Vasos- Executive Vice President, Division President and Chief Merchandising Officer Stengths Weaknesses ƒƒClear and easy to understand value proposition ƒƒRapid expansion puts pressure on supply chain ƒƒConsistent traffic and basket growth via strategic ƒƒNeeds to build out capabilities around perishables focus on consumables (particularly edible distribution grocery) ƒƒLean in store labor model makes execution of ƒƒAssortment concentrated on high velocity, need programs a challenge based items ƒƒStill viewed as “emerging” by many suppliers ƒƒSolution selling coupled with low levels of resource investment ƒƒLow capital investment required for store base expansion ƒƒE-commerce and social media platform Opportunities Threats ƒƒGrowing attention from middle and higher income ƒƒFamily Dollar is starting to gain speed as a real shoppers alternative ƒƒGrocery-centric DG Market format has potential ƒƒIncreased competition from Walmart via its to make DG a primary outlet for shoppers Neighborhood Market format ƒƒExpansion into new markets ƒƒGrowing inventory levels could disrupt supply ƒƒPrivate label getting increasingly sophisticated chain ƒƒSenior management’s contracts up for renewal soon Dollar General Sales & Store Forecasts Dollar General Sales (USD millions) by Banner 07 - '12E 12E - '17E Banner 2012E 2013E 2014E 2015E 2016E 2017E CAGR CAGR Dollar General $15,858 $17,277 $18,657 $20,033 $21,421 $22,849 11.2% 7.6% Dollar General Market $ 450 $ 659 $ 938 $ 1,257 $ 1,612 $ 2,005 21.7% 34.8% Dollar General Plus $ 168 $ 311 $ 497 $ 643 $ 813 $ 1,009 N/A 43.2% dollargeneral.com $ 90 $ 162 $ 235 $ 317 $ 396 $ 456 N/A 38.3% TOTAL $16,565 $18,408 $20,327 $22,250 $24,244 $26,319 11.8% 9.7%

Dollar General Stores by Banner 07 - '12E 12E - '17E Banner 2012E 2013E 2014E 2015E 2016E 2017E CAGR CAGR Dollar General 10,283 10,683 11,003 11,288 11,563 11,828 4.8% 2.8% Dollar General Market 109 159 214 274 339 409 13.8% 30.3% Dollar General Plus 125 165 210 260 315 375 N/A 24.6% TOTAL 10,517 11,007 11,427 11,822 12,217 12,612 5.1% 3.7%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Small Format Value Dollar All Shoppers Retailers General 12,069 4,328 1,812 Annual Household Income <$25K 26% 35% 37% $25K - $49.9K 25% 29% 32% $50K - $74.9K 18% 16% 15% $75K - $99.9K 11% 9% 7% $100K+ 20% 12% 9% Note: Dark highlighted cells indicate a significantly greater percentage vs. all shoppers Aug-12 Sep-12

Total 587 614 Job security of employed HH members Much better/somewhat better off 25% 27% No change from last year 53% 53% Somewhat worse/much worse off 22% 21% HH income level Much better/somewhat better off 28% 31% No change from last year 43% 40% Somewhat worse/much worse off 28% 29% Source: Kantar Retail ShopperScape®, Q3 (Jul-Sept2012); Aug-Sept 2012 Family Dollar

Key Initiatives Family Dollar defines its growth strategy around the following elements: Build customer loyalty and experience: ƒƒImplementing a comprehensive store remodel program, a modified item assortment, and improved talent management Develop diverse, high-performing teams: ƒƒProductivity improvement, new labor management tools, and enhanced training programs Deliver profitable sales growth: ƒƒNew stores in existing markets as well as entering new markets such as California; growing private label penetration Drive continuous improvement: ƒƒInvesting in new merchandising practices, core store processes, price optimization capabilities, shopper insights, and category management Key Players ƒƒBarry Sullivan- EVP – Store Operations ƒƒHoward R. Levine- Chairman of the Board CEO ƒƒKevin Boyanowski - SVP - Global Sourcing ƒƒMichael K. Bloom- President and COO ƒƒBryan P. Causey- SVP – Logistics ƒƒPaul G. White- EVP – Chief Merchandising Officer ƒƒTammy L. DeBoer- SVP- Food ƒƒMary A. Winston- EVP – Chief Financial Officer ƒƒHolly Shaskey-Platek- SVP– Merchandising ƒƒCharles S. Gibson, Jr.- EVP – Supply Chain ƒƒJohn J. Scanlon- SVP - Hardlines

Stengths Weaknesses ƒƒClear and easy to understand value proposition ƒƒRapid expansion pressures supply chain ƒƒConsistent traffic and basket growth via strategic ƒƒLean in store labor model makes execution of focus on consumables (particularly in HBA) programs a challenge ƒƒAssortment concentrated on high velocity, need ƒƒStill viewed as “emerging” by many suppliers based items coupled with low levels of resource investment ƒƒStrong perishables distribution network via ƒƒConsumables growth is dilutive to gross margin McLane partnership ƒƒLack of format diversity ƒƒNewly invigorated corporate culture via enthusiastic senior management Opportunities Threats ƒƒGrowing attention from middle and higher income ƒƒDollar General remains the channel leader shoppers ƒƒIncreased competition from other small box ƒƒExpansion into new markets retailers ƒƒPrivate label getting increasingly sophisticated ƒƒIncreased competition from Walmart via its ƒƒE-commerce platform Neighborhood Market format ƒƒContinued growth of expertise around seasonal ƒƒGrowing inventory levels could disrupt supply selling chain ƒƒMore sophisticated digital marketing efforts from others Family Dollar

Sales & Store Forecasts

Family Dollar Sales (USD Billion) by Banner 07 - '12E 12E - '17E Banner 2012E 2013E 2014E 2015E 2016E 2017E CAGR CAGR Family Dollar $ 9.3 $ 10.4 $ 11.6 $ 13.0 $ 14.4 $ 16.0 6.4% 11.4%

Family Dollar Stores by Banner 07 - '12E 12E - '17E Banner 2012E 2013E 2014E 2015E 2016E 2017E CAGR CAGR Family Dollar 7,442 7,852 8,267 8,685 9,093 9,504 3.0% 5.0%

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Q3 2012 Shopper All Primary Monthly Family Household Dollar Profile Shoppers Shoppers Age 18–24 5% 5% 25–34 17% 21% 35–44 18% 19% 45–54 21% 24% 55–64 18% 16% 65+ 20% 15% Household Income <$25K 26% 43% $25K–$49.9K 25% 30% $50K–$74.9K 18% 12% $75K–$99.9K 11% 7% $100K+ 20% 8% Presence of Own Children <18 in Household Yes 26% 32% No 74% 68%

Source: Kantar Retail ShopperScape®, July-September 2012 Participating Mass Retailers Target

Key Initiatives Key Players ƒƒPFresh ƒƒGregg Steinhafel- President & CEO ƒƒ5% Rewards ƒƒJohn Mulligan- EVP & CFO ƒƒTarget Canada ƒƒKathee Tesija- EVP Merchandising & Supply Chain ƒƒCityTarget ƒƒTony Fisher- President, Target Canada ƒƒMultichannel + mobile ƒƒJeff Jones- EVP & CMO

Stengths Weaknesses ƒƒStrong brand & reputation for innovation ƒƒVery narrow margin of error, small deviations ƒƒMarket positioning leader become expensive ƒƒStrong popular exclusive/PL brands ƒƒ Planning calendar can limit ability to make last minute changes ƒƒGood real estate ƒƒ Margin implications of growing food share, price ƒƒLoyal core consumer with higher disposable comping, & 5% Rewards income vs. competitors ƒƒ OOS more problematic with lean inventory ƒƒClean stores, wide aisles, very shopable management ƒƒStrongly coordinated social media campaign ƒƒ Multichannel integration is still very limited; no capabilities site-to-store yet ƒƒ Excellent reputation for charitable giving ƒƒ Shopper penetration continues to trend downward, signaling a shrinking base Opportunities Threats ƒƒCityTarget format as the base for next wave of US ƒƒManagement transitions may lead to uncertainty expansion in urban areas on strategic continuity ƒƒTarget Canada begins international expansion, ƒƒ Markdown risks with rotational goods, possibility other countries later particularly if the trend is “missed“ ƒƒNew segmentation processes & tools to optimize ƒƒ Focus on “best” guests narrows base and assortment increases exposure to economic effects ƒƒImproving shopper visit frequency via food, then ƒƒ Increasingly tight inventory potentially restrict pick up discretionary purchases sales and limit flexibility ƒƒCapturing Millennial shoppers via mobile tools, ƒƒ OOS may frustrate shoppers who may dismiss social media, & other digital vehicles PFresh’s fill-in value proposition ƒƒDeveloping greater multichannel integration ƒƒ Competitors are further along ideveloping site- to-store and e-commerce solutions Target

Sales & Store Forecasts

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top 25 Monthly Cross-Shopped Retailers

Walmart/Walmart Supercenter 50% Amazon.com 39% Walgreens 32% CVS/pharmacy 30% Kohl's 23% Trader Joe's/ALDI 22% Costco 22% Kroger¹ 21% Dollar Tree 20% The Home Depot 17% Safeway² 16% Sam's Club 16% Lowe's 15% eBay.com 13% Macy's 12% JCPenney 12% Dollar General 12% Rite Aid 11% SuperValu³ 11% Barnes & Noble 10% Bed Bath & Beyond 10% 7-Eleven 9% Best Buy 9% TJMaxx 9% Kmart/Big Kmart 9% 0% 10% 20% 30% 40% 50% 60% Walmart

Key Initiatives Execute Merchandising Strategy. drive productivity loop, redefine seamless access, market share-driven real estate strategy Net/net: Reinforcing the core, while advancing new growth opportunities (i.e., multi-channel, smaller box) Key Players ƒƒMike Duke - CEO, Walmart, Inc. ƒƒCharles M. Holley - CFO, Walmart, Inc. ƒƒDoug McMillon - CEO , Walmart International ƒƒWilliam Simon - Chief Executive, Walmart US ƒƒDuncan Mac Naughton - Chief Merchandising Officer, Walmart US ƒƒStephen Quinn - Chief Marketer, Walmart US ƒƒGisel Ruiz -Chief Operator, Walmart US ƒƒCindy Davis - EVP of Global Consumer Insights ƒƒNeil Ashe - President and CEO, Global eCommerce Stengths Weaknesses ƒƒScale and cash flow ƒƒHistorical over-reliance on new stores ƒƒInternational format portfolio and expertise ƒƒLong-term decline in general merchandise ƒƒRelatively high shopping trip frequency category sales ƒƒMarket development and logistics model ƒƒOver-reliance on the Supercenter’s one-stop, stock-up proposition, limits the retailer’s ability to ƒƒInformation technology serve other trip types effectively ƒƒSystematic localization ƒƒVulnerability to negative publicity ƒƒOrganization model: measurement, rule-based, ƒƒInconsistent store experience collaboration with lead suppliers, and succession management and knowledge transfer ƒƒPerception of its “fresh” grocery offering sometimes lags ƒƒExperienced management ƒƒAsset-intensiveness of international operations ƒƒInsights capabilities Opportunities Threats ƒƒDevelopment of the Walmart brand, penetration ƒƒSmarter competition on many fronts of higher-income shoppers ƒƒExpanding competitors, including dollar, Aldi ƒƒIncreased international growth ƒƒPressure on loyalists from economic uncertainty, ƒƒNeighborhood Market/ small box expansion and volatile gas prices and interest rates ƒƒUtilizing global format expertise across ƒƒNegative publicity and litigation / regulation ƒƒSustainability initiatives and influence ƒƒSourcing, developing, and retaining people ƒƒHealth care services, initiative expansions ƒƒ Loss of favor as the assortment and store ƒƒExpanding credibility with consumers to sell in experiences shift back-and-forth more categories, and building cross-category ƒƒLack of alignment between online and in-store shopping management, operations ƒƒWalmart.com and site-to-store integration ƒƒLoss of perceived price leadership ƒƒDevelop multi-channel platforms ƒƒOver-filling its mid- and high-share markets with ƒƒServing fill-in, quick trips Supercenters, unnecessarily cannibalizing sales Walmart

Sales & Store Forecasts Walmart US Retail Sales Sales (USD Billions) CAGR Continent\Country Retailer Banner (2007 - (2012E- 2007 2012E 2017E 2012E) 2017E) North America\Puerto Rico Walmart Amigo $0.60 $0.61 $0.62 0.5% 0.2% North America\Puerto Rico Walmart Walmart $0.42 $0.35 $0.37 -3.7% 0.8% North America\Puerto Rico Walmart Walmart Supercenter $0.50 $0.96 $1.36 14.0% 7.1% North America\USA Walmart Walmart Small Format n/a $0.10 $0.76 n/a 50.7% North America\USA Walmart Neighborhood Market $2.81 $4.74 $14.52 11.0% 25.1% North America\USA Walmart Supermercado de Walmart n/a $0.04 $0.04 n/a 1.1% North America\USA Walmart Walmart $46.72 $25.82 $12.31 -11.2% -13.8% North America\USA Walmart Walmart Supercenter $187.84 $235.62 $277.54 4.6% 3.3% North America\USA Walmart walmart.com $2.16 $5.14 $9.92 18.9% 14.1% ¹ Walmart Small Format Includes Marketside, Express, and On Campus Walmart US Store Count

Stores CAGR Continent\Country Retailer Banner (2007 - (2012E- 2007 2012E 2017E 2012E) 2017E) North America\Puerto Rico Walmart Amigo 31 26 25 -3.5% -0.8% North America\Puerto Rico Walmart Walmart 8 6 5 -5.6% -3.6% North America\Puerto Rico Walmart Walmart Supercenter 6 10 12 10.8% 3.7% North America\USA Walmart Walmart Small Format¹ - 15 98 n/a 45.6% North America\USA Walmart Neighborhood Market 132 247 687 13.4% 22.7% North America\USA Walmart Supermercado de Walmart - 2 2 n/a 0.0% North America\USA Walmart Walmart 971 545 254 -10.9% -14.2% North America\USA Walmart Walmart Supercenter 2,447 3,145 3,698 5.1% 3.3% ¹ Walmart Small Format Includes Marketside, Express, and On Campus

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top 25 Retailers Cross-Shopped by Walmart Shoppers (past four-week shoppers)

1 Amazon.com 48% 2 Target/SuperTarget 42% 3 Walgreens 39% 4 Dollar Tree 33% 5 CVS/pharmacy 32% 6 Kohl's 31% 7 Lowe's 31% 8 The Home Depot 31% 9 Dollar General 30% 10 JCPenney 30% 1 11 Kroger (all banners) 24% 12 Best Buy 23% 13 eBay.com 23% 14 Sam's Club 22% 15 Family Dollar 22% 16 Macy's 20% 17 Kmart/Big Kmart 20% 18 Barnes & Noble 19% 19 Bed Bath & Beyond 18% 20 Staples 18% 21 Sears 18% 22 Michaels 17% 23 PetSmart 17% 24 Big Lots 16% 25 Costco 15% 1Includes Dillon's, King Soopers, Kroger, QFC, Ralph's, and Smith's banners Source: Kantar Retail ShopperScape®, January-December 2012 Participating Club Retailers BJ’s Wholesale

Key Initiatives ƒƒCompeting more effectively with supermarkets through a more cost-effective, local and unique offer ƒƒBetter understanding and articulating BJ’s brand, while maintaining a box that is predominantly a house of brands ƒƒImproving membership acquisition and retention through an enhanced club experience and offer

Key Players ƒƒLaura Sen- President and CEO ƒƒRobert Eddy- EVP and CFO ƒƒCornel Catuna- EVP, Club Operations ƒƒChristina Neppl- EVP, Merchandising and Logistics

Stengths Weaknesses ƒƒConsumables-driven traffic and share ƒƒLow sales/club compared to Sam’s, Costco ƒƒStrong regional presence across East Coast, ƒƒReliance on consumable SKUs notably in New England ƒƒValue proposition and club experience less ƒƒConsumer focus as channel differentiator dynamic, defensible ƒƒLack of discount grocers in its markets ƒƒLack of discipline – deviation from club model ƒƒStrong promotional activity supports increased ƒƒPrivate label with less equity than competitors awareness ƒƒReal estate: Footprint challenges efficiencies

Opportunities Threats ƒƒTalent development ƒƒMember retention, first year and long-term ƒƒIncreasing leverage of membership margin ƒƒUS economy - Concentration of buildings in tough ƒƒOptimizing private label portfolio housing markets ƒƒOnline site growth, social media penetration ƒƒExtra SKUs, credit, and coupon costs ƒƒIncreased capital and scale via privatization ƒƒCompetition from local grocers, clubs ƒƒImproved financial flexibility supports moderate ƒƒBalancing financial model with strategies expansion, investment ƒƒLack of capital, scale relative to competitors ƒƒVendor partnering/insights, willingness to test ƒƒReliance upon merchandise margin BJ’s Wholesale

Sales & Store Forecasts

Banner Sales (USD, Billions)* 2011 2012E 2013E 2014E 2015E 2016E 2017E BJs 11.7 12.4 13.0 13.7 14.4 15.2 16.0 bjs.com 0.1 0.1 0.1 0.1 0.2 0.2 0.2

*US only, includes membership fee income

Number of Stores Banner 2011 2012E 2013E 2014E 2015E 2016E 2017E BJs 195 200 205 209 214 219 223 bjs.com 0 0 0 0 0 0 0

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top Retailers Shopped During Past 4 Weeks, Among Past 4-Week BJ's Shoppers

2012 Index Sample size 2822 Walmart / Walmart Supercenter 66% 93 Target / SuperTarget 53% 90 CVS/pharmacy 56% 109 The Home Depot 48% 98 Lowe's 39% 102 Kohl's 43% 112 Walgreens 39% 107 Best Buy 32% 90 JCPenney 32% 96 Staples 35% 105 Macy's 34% 104 Hallmark 34% 105 Amazon.com 56% 174 Bed Bath & Beyond 30% 92 Rite Aid 28% 96 Barnes & Noble 31% 108 Toys "R" Us 24% 93 eBay.com 26% 105 Michaels 25% 105 Stop & Shop 23% 98 Kmart/Big Kmart 25% 106 Dollar Tree 31% 180 Source: Kantar Retail ShopperScape®, January– December 2012 Costco

Key Initiatives ƒƒInternational expansion, especially in Asia and Australia and extending to new markets like France ƒƒLeveraging health and wellness, to appeal to its aging memberbase as well as its increasingly health conscious shoppers ƒƒMaximizing the club experience to better attract, engage and retain members ƒƒTurning more attention to Gen Y, especially ramping up digital strategy to maintain relevance with evolving member preferences, younger member appeals Key Players ƒƒCraig Jelinek- President and CEO ƒƒRichard Galanti- EVP and CFO ƒƒJames Murphy- EVP, International ƒƒDouglas Schutt-EVP, Merchandising

Stengths Weaknesses ƒƒManagement continuity ƒƒManagement continuity ƒƒAdherence to model ƒƒPace of decision-making ƒƒMember loyalty/trust and resilience ƒƒInformation value chain management ƒƒCommitment to members/employees ƒƒReliance on word of mouth ƒƒAmerican Express partnership ƒƒAdherence to model ƒƒResilience across business cycles ƒƒNext generation appeals and relevance ƒƒBrand equity, experience and private brand ƒƒConvenience in the traditional sense Opportunities Threats ƒƒCo- and multi-vendor branding ƒƒExposure to West Coast given concentration ƒƒNew markets, including online ƒƒIncreasing competition, especially from online ƒƒMargin enhancement via exclusives ƒƒChanging sales mix to more consumables ƒƒGoing green ƒƒVulnerability to gas, FX ƒƒBusiness focus ƒƒSam’s gaining brand strength ƒƒHispanic, Gen Y and more localized markets ƒƒEfficiency management ƒƒCollaboration on item innovation ƒƒGrowth of Kirkland Signature brand ƒƒRefinement of promotional activity ƒƒMemberbase potentially aging out of the box Costco

Sales & Store Forecasts

Sales (Billions)* Continent\Country 2011 2012E 2013E 2014E 2015E 2016E 2017E Asia\Japan 3.0 3.9 5.5 6.8 8.1 9.8 11.5 Asia\South Korea 0.6 0.7 0.8 1.0 1.1 1.2 1.4 Asia\Taiwan 1.2 1.4 1.7 1.9 2.3 2.5 3.0 Australasia\Australia 0.3 0.5 0.7 0.8 0.9 1.0 1.1 Europe\France - - - - 0.1 0.1 0.1 Europe\United Kingdom 2.4 2.5 2.6 2.8 3.0 3.1 3.4 North America\Canada 13.9 15.4 16.7 17.5 18.1 19.1 20.3 North America\Mexico 2.5 2.5 2.7 3.0 3.3 3.6 4.0 North America\Puerto Rico 0.7 0.7 0.8 0.8 1.0 1.1 1.2 North America\USA 64.2 71.0 77.2 83.7 90.7 98.0 106.0 *Includes membership fee income Number of Stores Continent\Country 2011 2012E 2013E 2014E 2015E 2016E 2017E Asia\Japan 9 13 16 18 19 21 22 Asia\South Korea 7 8 9 10 10 11 12 Asia\Taiwan 8 9 10 10 11 11 12 Australasia\Australia 3 3 4 5 5 6 6 Europe\France - - - - 1 1 1 Europe\United Kingdom 22 22 23 24 25 25 26 North America\Canada 82 82 85 87 90 92 95 North America\Mexico 32 32 33 34 36 37 39 North America\Puerto Rico 4 4 4 4 5 5 5 North America\USA 425 435 446 457 469 479 490

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top 25 Retailers Shopped during Past Four Weeks by Monthly Costco Shoppers

Monthly Costco Shoppers Total 524 Costco 100% Amazon.com 59% Walmart Supercenter 51% Target GM 50% The Home Depot 46% CVS/pharmacy 42% Kohl's 42% Walgreens 41% Macy's 38% Best Buy 37% Lowe's 34% JCPenney 33% Bed Bath & Beyond 33% Netflix 32% Trader Joe's 32% Dollar Tree 30% Michaels 29% Staples 27% eBay.com 26% Barnes & Noble 25% Sears 23% Safeway 22% SuperTarget 22% Hallmark 21% Toys "R" Us 21% Apple 21% Source: Kantar Retail ShopperScape®, November 2012 Sam’s Club

Key Initiatives ƒƒLeading in Digital, as the most tech- and digital-savvy of the clubs, Sam’s goal is get and stay ahead of the pack here ƒƒLeveraging health and wellness and services, to appeal to aging and health conscious shoppers while maximizing its member value proposition ƒƒBetter engaging members, across platforms and boundaries by increasingly integrating online and mobile with the box ƒƒMaximizing member insights, to better understand , attract, retain and appeal to club shoppers and prospective members Key Players ƒƒRosalind Brewer – President and CEO ƒƒCharles Redfield, EVP, Merchandising ƒƒTodd Harbaugh, EVP, Operations ƒƒJohn Boswell, SVP Marketing, Member Insights, and eCommerce ƒƒMichael Dastugue, SVP, CFO ƒƒDon Frieson, SVP, Replenishment and Planning

Stengths Weaknesses ƒƒInsights and analytics capabilities ƒƒLow membership renewal, growth rates ƒƒWalmart corporate oversight, resources ƒƒSales per club – asset productivity ƒƒDigital platforms and capabilities ƒƒSKU productivity performance ƒƒFresh leadership talent ƒƒConfusion due to historical pendulum swings ƒƒAligned mission, clear go-to-market strategy between business & individual member focus ƒƒVendor collaboration ƒƒInconsistency of format locations, in-club presence, and sales volumes across US ƒƒOpenness to testing and implementing novel marketing and merchandising approaches ƒƒUnderdeveloped private brand equity Opportunities Threats ƒƒPersonalized promotions via Instant Savings ƒƒPrice perception versus key club competitors ƒƒExpanded marketing efforts to build engagement, ƒƒCompetition from other channel retailers, such as especially via new media, H&W mass and online, esp. Amazon ƒƒSustainability as emotional connector and for ƒƒSignificant shopper overlap with Walmart added efficiencies ƒƒChannel blurring in club packs with Walmart ƒƒGrowing private label penetration ƒƒNewer senior leaders risk not foreseeing nuanced ƒƒFormat innovation to target specific subgroups challenges to implementing change ƒƒ“Gen Y” family formation = rising audience ƒƒGrowing private label penetration ƒƒStraying too far from the club model Sam’s Club

Sales & Store Forecasts

Sales (USD, Billions)* Continent\Country 2011 2012E 2013E 2014E 2015E 2016E 2017E

Asia\China 0.4 0.4 0.5 0.5 0.6 0.6 0.7

North America\Mexico 6.7 6.9 7.5 8.1 8.7 9.3 9.9

North America\Puerto Rico 1.1 1.2 1.2 1.3 1.4 1.5 1.6

North America\USA 52.2 54.9 57.9 61.2 64.8 68.6 72.6

South America\Brazil 1.2 1.2 1.2 1.3 1.3 1.4 1.4

*Includes membership fee income

Number of Stores Continent\Country 2011 2012E 2013E 2014E 2015E 2016E 2017E Asia\China 6 7 8 8 9 9 10 North America\Mexico 124 132 140 147 154 161 168 North America\Puerto Rico 11 11 11 12 12 12 13 North America\USA 599 608 620 631 641 650 659 South America\Brazil 27 28 29 30 31 32 33

Merchandising, Marketing. & Kantar Retail ShopperScape® Data

Top 25 Retailers Shopped during Past Four Weeks by Monthly Sam's Club Shoppers

Monthly Sam's Club Shoppers Total 521 Sam's Club 100% Walmart Supercenter 77% Amazon.com 53% Walgreens 44% The Home Depot 43% Lowe's 43% Kohl's 41% Dollar Tree 37% Target GM 36% Strong and JCPenney 34% growing CVS/pharmacy 33% Best Buy 31% emphasis on Dollar General 31% driving value Macy's 25% including and Kroger/Kroger Marketplace/Kroger Fresh Fare 24% extending Bed Bath & Beyond 23% Big Lots 23% beyond price Staples 23% eBay.com 22% Michaels 22% PetSmart 22% Netflix 21% Sears 21% Barnes & Noble 21% Kmart/Big Kmart 21% ALDI 20% Source: Kantar Retail ShopperScape®, October 2012 Authors + Contributors

Jessica Campbell / Drug Retailers Bryan Gildenbert Analyst Chief Knowledge Officer [email protected] / 617.912.2874 [email protected] / 617.912.2862

Mike Pagalia / Supermarket + Value Retailers Senior Analyst [email protected] / 617.912.2855 Alida Destrempe / Supermarket Retailers Analyst [email protected] / 614.355.4030 Sara Al-Tukhaim / Club Retailers Principal Analyst [email protected] / 617.912.2859 Robin Sherk / Walmart Director, Retail Insights [email protected] / 212.896.8191 Amy Koo / Target Senior Analyst Kantar Retail [email protected] / 617.912.2872 501 Boylston Street, Suite 6101 Rachel McGuire/ Shopper Data Senior Analyst Boston, MA 02116 [email protected] / 614.355.4036 www.kantarretail.com Kate Senzamici/ Shopper Data www.kantarretailiQ.com Analyst T 617 912 2828 [email protected] / 617.912.2866 F 630 245 5647

Sources: Kantar Retail analysis, KRiQ, Kantar Retail ShopperScape® NACDS, company reports + material