Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Walmart shopping experience:
1. Compare - without doubt the biggest advantage that the Walmart offers shoppers today is the ability to compare thousands of Walmart at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Walmart? Wrong! If the Walmart is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Walmart then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Walmart? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Walmart and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Walmart wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Walmart then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Walmart site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Walmart, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Walmart, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
{{Infobox_Company| company_name = Wal-Mart Stores, Inc.| company_logo = | company_type =
Department store#Discount department store/
Public company ()| company_slogan = Save Money, Live Better.
Always Low Prices. Always.
Save More. Smile More. (U.S.)
WE SELL FOR LESS every day! (Canada)], Arkansas, United States (1962)],
Arkansas,
United States| key_people =
Sam Walton (1918–
1992),
EntrepreneurH. Lee Scott,
Chief executive officerS. Robson Walton, Chair (official)
Tom Schowe,
Chief financial officer| industry =
Retailing| num_employees = 1.9 million (2007)Biesada, Alex. " Wal-Mart Stores, Inc."
Hoover's. Retrieved on
October 13, 2006.]s,
supermarkets, and hypermarkets Optical,
Pharmacy, Portrait Studio]351.1 billion (
2007)]11.3 billion (
2007)] Public company, currently one of the world's largest corporations (by revenues) according to the 2007 Fortune 500.Staff Writer. " Fortune 500."
CNN/Fortune (magazine). April 16,
2007. Retrieved on July 15,
2007. It was founded by Sam Walton in 1962, Incorporation (business) on
October 31, 1969, and listed on the
New York Stock Exchange in
1972. It is the largest private employer in the world and world's fourth largest utility or commercial
employer, only trailing the
People's Liberation Army of People's Republic of China, the
National Health Service of the
United Kingdom and the Indian Railways. Wal-Mart is the largest
Grocery store Retailing in the
United States, with an estimated 20% of the retail grocery and consumables business, and the largest toy seller in the U.S., with an estimated 45% of the retail toy business, having surpassed Toys "R" Us in the late
1990s.
Wal-Mart operates in
Mexico as
Walmex, in the United Kingdom as
ASDA, and in
Japan as Seiyu Group Wholly owned operations are located in Argentina,
Brazil, Canada,
Puerto Rico, and the UK. Wal-Mart's investments outside North America have produced mixed results. In
2006, Wal-Mart sold its retail operations in South Korea and
Germany due to sustained losses and a highly competitive market.
Wal-Mart has been the target of
Criticism of Wal-Mart from some community groups, women's rights groups,
grassroots organizations, and
Trade unions. Specific criticisms include the company's extensive foreign product sourcing, low rates of employee health insurance, resistance to union representation, and alleged
sexism, among other things.
History
Sam Walton's retailing career began when he accepted a job offer at a JCPenney store in
Des Moines, Iowa on June 3,
1940 where he remained for 18 months. In 1945, he met with Butler Brothers, a regional
retailer that owned a chain of Five and dime called
Ben Franklin Stores. Butler Brothers offered him a Ben Franklin store in Newport, Arkansas.
Walton could not come to agreement on his lease renewal and could not find a new location in Newport; so he located a new variety store in
Bentonville, Arkansas which he would open as another Ben Franklin franchise, but called "Walton's Five and Dime." Walton achieved higher sales volume by selling products with slightly smaller markups than most competitors.Frank, T.A. " A Brief History of Wal-Mart."
The Washington Monthly. April 1, 2006. Retrieved on July 24, 2006.
On July 2
1962, Walton opened the first Wal-Mart store, Wal-Mart Discount City and within five years the company expanded to 24 stores across the state of Arkansas and reached $12.6 million in sales. In 1968, it opened its first stores outside Arkansas, in
Sikeston, Missouri and Claremore, Oklahoma." The Wal-Mart Timeline."
Wal-Mart (published on walmartfacts.com). Retrieved on
July 24,
2006.
The company was
incorporated as
Wal-Mart Stores, Inc. on
October 31, 1969, and in 1970 opened its home office in
Bentonville, Arkansas, and its first distribution center. There were now 38 stores operating with 1,500 employees and sales of $44.2 million. The company began trading stock at this time as a Public company on October 1,
1972, and was listed on the
New York Stock Exchange shortly thereafter. The first
stock split occurred in May 1971 at a market price of $47. By this time, Wal-Mart was operating in five U.S. state: Arkansas, Kansas,
Louisiana, Missouri and
Oklahoma, and entered Tennessee in 1973, and Kentucky and Mississippi in
1974. As it moved into
Texas in
1975, there were 125 stores with 7,500 employees, and total sales of $340.3 million.
Wal-Mart continued to grow rapidly during the 1980s, and by its
Anniversary in 1987, there were 1,198 stores with sales of $15.9 billion and 200,000 associates. This year also marked the completion of the company's
satellite network, a $24 million investment, linking all operating units of the company with their Bentonville Office via two-way voice, data, and one-way video communication. At the time, this was the largest private satellite network, and allowed the corporate office to track inventory, sales, and send instant communication to their stores.Ranade, Sudhanshu. " Satellite adds speed to Wal-Mart."
The Hindu Business Line. July 17,
2005. Retrieved on
July 24,
2006. Company founder Sam Walton stepped down as CEO the following year, and was replaced by [David Glass.Longo, Donald. " Wal-Mart hands CEO crown to Glass - David Glass."
Discount Store News (available via FindArticles). February 15,
1988. Retrieved on
July 24,
2006. Walton remained on as Chairman of the Corporate
Board of Directors, and the company also restructured their senior management positions, elevating a cadre of executives to positions of greater responsibility.
Also in 1988, the first
Wal-Mart Supercenter opened in Washington, Missouri.Staff Writer. " Wal-Mart tests similar hypermarkets - Hypermart USA, Wal-Mart SuperCenter."
Discount Store News. March 28,
1988. Retrieved on
April 19,
2007. Wal-Mart expanded their superstore concept during the 1990s, and shortly thereafter surpassed Toys "R" Us in toy sales.Byrnes, Nanette; Eidam, Michael. " Toys 'R' Us: Beaten At Its Own Game."
Business Week. March 29,
2004. Retrieved on
July 25,
2006. The company also opened overseas stores during this period, entering the
South American market in 1995 with stores in Argentina and Brazil, and purchasing ASDA in the
United Kingdom for $10 billion in 1999.Buerkle, Tom. " $10 Billion Gamble In U.K. Doubles Its International Business: Wal-Mart Takes Big Leap Into Europe."
International Herald Tribune. June 15, 1999. Retrieved on
April 19,
2007. In 1998, Wal-Mart entered the grocery business, introducing their Wal-Mart Neighborhood Market concept with three stores in Arkansas." Neighborhood Markets."
Wal-Mart (website). Retrieved on April 19, 2007. By 2005, estimates indicate that the company controlled approximately 20% of the retail grocery and consumables business.Ortiz, John. " Can Kroger slow Wal-Mart?"
Deseret Morning News. October 26,
2005. Retrieved on
July 25, 2006.
By 2000, as H. Lee Scott was named President and CEO of the company, Wal-Mart's sales increased to $165 billion." 2000 Annual Report: Net Sales."
Wal-Mart. Retrieved on
April 19, 2007. In 2002, Wal-Mart was listed for the first time on the
Fortune 500 list of the world's largest corporations, with revenues of $219.8 billion and profits of $6.7 billion. The company was subsequently listed at #1 for every year after 2002 except for 2006.Staff Writer. " Fortune 500."
CNN/Fortune (magazine). April 17, 2006. Retrieved on July 15,
2007.
In 2005, Wal-Mart had $312.4 billion in sales, more than 6,200 facilities around the world, including 3,800 stores in the
United States and 2,800 international units, and employing more than 1.6 million associates worldwide. In fact, their U.S. presence had grown so rapidly that there were only small pockets of the country that remained further than 60 miles away from the nearest Wal-Mart. Also in 2005, focusing on becoming more ecologically-friendly, the company designed two new experimental stores, one in
McKinney, Texas and the other in Aurora, Colorado, featuring wind turbines, photovoltaic solar panels, biofuel-capable boilers, water-cooled refrigerators, and xeriscape gardens.Berner, Robert. " Can Wal-Mart Wear a White Hat?"
BusinessWeek. September 22, 2005. Retrieved on
July 24,
2006.
In March 2006, Wal-Mart sought to attempt to appeal to a more affluent demographic, with the opening of a new supercenter in Plano, Texas, and is intended to compete against stores that some view as more upscale and appealing, such as Target Corporation.Koenig, David. " Wal-Mart Targeting Upscale Shoppers."
ABC News. March 22,
2006. Retrieved on
July 25, 2006. The new store features wooden floors, wider aisles, a
sushi bar, a coffee/sandwich shop (with free Wi-Fi
Internet access), and higher-end items such as
microbrew beer, expensive
wines, and high-end electronics. The exterior sports the less-common hunter green background behind the Wal-Mart letters instead of the trademark blue.
On September 12,
2007, after 19 years, Wal-Mart introduced new
advertising with the
slogan, "
Save Money Live Better," instead of "
Always Low Prices, Always". It commissioned
Global Insight for the
ads and the report stated that as of 2006, the retailer saves United States families $2,500 yearly (up 7.3% from $2,329 , 2004). The new
research found that the
reduction in price levels due to Wal-Mart resulted to
savings for
consumers of $287 billion in 2006, which is $957 / person or $2,500 / household.Staff Writer. " Wal-Mart Rolling Out New Company Slogan."
Reuters via the
New York Times. September 12,
2007. Retrieved on September 26,
2007.
Subsidiaries
Wal-Mart's operations are comprised primarily in three retailing subsidiaries. Wal-Mart Stores Division U.S.,
Sam's Club (second biggest to Costco), and Wal-Mart International. Wal-Mart does business under nine different retail formats: Big-box store, supermarkets,
general merchandise stores, bodegas (small markets), cash and carry stores, Warehouse clubs,
apparel stores, soft
discount stores and restaurants.
Wal-Mart Stores Division U.S.
, USA. Unlike smaller Wal-Mart stores, most Wal-Mart Supercenters feature double entrances and a few triple entrances (Main, Food, and Garden Center).., a suburb of the St. Louis, Missouri area.The
Wal-Mart Stores Division U.S. is Wal-Mart's largest business subsidiary, accounting for 67.2% of fiscal 2006 net sales. This segment consists of three traditional retail formats:
department stores,
hypermarkets, and
supermarkets, all of which are located in the
United States, as well as Wal-Mart's online retailer,
walmart.com. Walmart.com was listed in the Top 500 largest e-retailers Guide by Internet Retailer in 2007. This list also incorporated other retailers such as Target Corporation, Apple Inc., and PartStore.com. PartStore.com Listed Among Internet Retailer's Top 500. Published by Forbes, May 23, 2007. Accessed on June 25, 2007. Additionally, in February 6,
2007, the company launched a "beta" version of their new movie download service,
mediadownloads.walmart.com, which sells 3,000 films and television episodes from all major studios and television networks.Staff Writer. " Wal-Mart Launches Online Movie Download Service."
Fox News. February 6,
2007. Retrieved on
February 14, 2007.
Wal-Mart Stores operates retail department stores selling a range of non-grocery products, though emphasis is now focused on the supercenters, which include more grocery items.
Wal-Mart Discount Stores
Wal-Mart Discount Stores are a chain of
discount department stores that range in size from 100,000 square feet (5,000 m²) to 224,000 square feet (21,000 m²) with an average size of approximately 102,000 square feet (9,500 m²). They carry some
general merchandise products and a selection of
grocery. Many of these stores also feature a garden center, a
pharmacy, Tire & motor oil Express, optical center, Photographic processing,
portrait studio, and a
fast food outlet. Some also have gasoline stations.
The first Wal-Mart store in Rogers, Arkansas, has been remodeled and expanded, becoming a 24-hour Wal-Mart Supercenter. A similar Wal-Mart concept,
Discount City, opened in Rogers a year earlier, but all of these stores were later closed or converted into Discount Stores.
As of
May 31,
2007, there were 1,040 Wal-Mart Discount Stores in the
United States. The busiest Wal-Mart in the world is in Rapid City, South Dakota." Corporate Profile."
Wal-Mart. Retrieved on
July 26, 2006.
Wal-Mart Supercenter
Wal-Mart Supercenters are a chain of hypermarkets that range in size from 98,000 square feet (9,000 m²) to 261,000 square feet (24,000 m²) with an average size of approximately 197,000 square feet (17,000 m²). They carry everything a Wal-Mart Discount Store does, as well as a full-line supermarket (including meat and
poultry,
baked goods, delicatessen, frozen foods, dairy products,
garden produce and fresh seafood). Many Wal-Mart Supercenters also feature a garden center, a pet shop, a pharmacy, a Tire & Lube Express, optical center, one-hour photo processing lab, portrait studio, and numerous alcove shops such as a cellular phone store, hair and nail salons, a video rental store, a family fun center, a branch of a local bank, and possibly a
fast food outlet. Some locations also sell gasoline, either through
Murphy Oil Corporation, whose Wal-Mart stations are branded as "Murphy USA",
Sunoco, Inc., as "Optima", or
Tesoro, who uses the "Mirastar" banner on theirs.
The first Supercenter opened in 1988 in Washington, Missouri; a similar Wal-Mart concept,
Hypermart USA, opened in Garland, Texas, a year earlier, but all of those stores were later closed or converted into Supercenters. As of May 31,
2007, there were 2,326 Wal-Mart Supercenters in the
United States.
Wal-Mart Neighborhood Market
Wal-Mart Neighborhood Markets are a chain of supermarkets that average about 42,000 square feet (3,900 m²). They offer a variety of products (including a full-line of groceries, pharmaceuticals, health and beauty aids, photo developing services, and a limited selection of
general merchandise).
The first Neighborhood Market opened in 1998 in
Bentonville, Arkansas. As of May 31,
2007, there were 118 Neighborhood Markets in the United States.
Sam's Club
Wal-Mart operates
Sam's Club, a chain of warehouse clubs that sells groceries and
general merchandise, often in large quantities or volume. Sam's Club stores are "membership" stores and customers can subscribe to a paid, annual membership. However, the stores are open to non-members and non-members can make purchases either by purchasing a day or annual membership or paying a surcharge based on the price of the purchase. Some locations also sell
gasoline. The first Sam's Club opened in 1983 in Midwest City, Oklahoma.
According to Wal-Mart's 2006 Annual Report, Sam's Club accounted for approximately 12.7% of fiscal 2006 sales. Competitors of Wal-Mart's Sam's Club division are
Costco, and the smaller
BJ's Wholesale Club chain operating mainly in the eastern US.
As of May 31,
2007, there were 584 Sam's Clubs in the United States.
Wal-Mart International
., China.Wal-Mart's international operations comprise 2,701 stores in 14 countries outside the United States." Wal-Mart Announces Sale of German Business."
Wal-Mart. July 28,
2006. Retrieved on August 15, 2006. According to Wal-Mart's 2006 Annual Report, International accounted for approximately 20.1% of fiscal 2006 sales. Wholly owned operations are located in Argentina,
Brazil, Canada,
Puerto Rico and the United Kingdom (UK). With 1.8 million employees worldwide, the company is the largest private employer in the US and Mexico, and one of the largest private employers in Canada.."
Wal-Mart. Retrieved on August 12,
2006.
Wal-Mart has operated in Canada since their acquisition of the Woolco division of
F. W. Woolworth Company." Company Profile."
Wal-Mart Canada. Retrieved on September 12,
2006. Today, they operate 278 locations employing 70,000 Canadians, with a local home office in Mississauga, Ontario. On
November 8,
2006, Wal-Mart Canada's first three Supercentres opened in Ancaster, Ontario, London, Ontario, and Aurora, Ontario. As of January 31,
2007, there were six Wal-Mart Supercentres in Canada. As of
November 30,
2006, there were six Sam's Clubs
Canada (all in
Ontario:
London, Ontario, Richmond Hill, Ontario, Vaughan, Ontario, Cambridge, Ontario, Pickering, Ontario, and Toronto, Ontario). In December 2006, conversion of a Wal-Mart Discount Store into a Wal-Mart Supercentre has begun in Lethbridge, Alberta, making it the 7th in Canada and the first in Western Canada.
Sales in the fiscal year 2006 for Wal-Mart's UK subsidiary, ASDA (an abbreviation of
ASquith and
DAiries), were 42.7% of the International segment sales. In contrast to Wal-Mart's US operations, ASDA was originally and remains primarily a grocery chain, but it has a stronger focus on non-foods than most UK supermarket chains (a notable exception is
Tesco, UK's largest grocery & Non-food retailer). At the end of fiscal year 2006, there were 236 ASDA stores, 10 George stores, 5 ASDA Living and 43 ASDA small stores.
In addition to its wholly-owned international operations, Wal-Mart has joint ventures in
China and several majority owned subsidiaries. Wal-Mart's majority owned subsidiary in
Mexico is Walmex. In Japan, Wal-Mart owns approximately 53% of
Seiyu Group" Wal-Mart Reports Third Quarter Sales and Earnings."
Wal-Mart. November 14, 2006. Retrieved on
November 14, 2006. Additionally, Wal-Mart owns 51% of the Central American Retail Holding Company (CARHCO) formed from more than 360 supermarkets and other store formats, operating in 5 Central American countries:
Guatemala,
El Salvador,
Honduras,
Nicaragua and Costa Rica." Wal-Mart SEC Form 10-K."
United States Securities and Exchange Commission. January 31,
2006. Retrieved on July 26, 2006.
In 2004, Wal-Mart bought the Bompreço supermarket chain, composed of 116 stores. Bompreço is the major supermarket chain in Northeastern
Brazil. In late 2005, Wal-Mart took control of the Brazilian operations of Sonae Distribution Group through its new subsidiary, WMS Supermercados do Brasil, thus acquiring control of the Nacional and Mercadorama supermarket chains, the leaders in Rio Grande do Sul and Paraná states. None of those operations were rebranded. As of August 2006, Wal-Mart operates 71 Bompreço stores, 27 Hiper-Bompreço stores, 15 Balaio stores and 3 Hiper-Magazines (all originally part of Bompreço). It also runs 19 Wal-Mart Supercenters, 13 Sam's Club stores and 2 Todo Dia stores. With the acquisition of Bompreço and Sonae, Wal-Mart is currently the third largest supermarket chain in Brazil, behind Carrefour and
Companhia Brasileira de Distribuição.
In July 2006, Wal-Mart announced its withdrawal of operations from
Germany because of sustained losses in the highly-competitive German market. The stores were sold to the German company
METRO AG.Staff Writer. " Wal-Mart abandons German venture."
BBC News. July 28,
2006. Retrieved on July 31, 2006. The sale was completed in Wal-Mart's fiscal third quarter.
In November 2006, Wal-Mart announced a joint venture with Bharti Enterprises to open "hundreds" of retail stores in India. Since foreign corporations are not allowed to enter the retail sector in India directly, Wal-Mart is expected to operate through franchises and handle the wholesale end of the venture. A. Giridharadas, S. Rai, " Wal-Mart to Open Hundreds of Stores in India",
The New York Times." November 27, 2006. Retrieved on November 27, 2006. The partnership will involve two joint ventures. While Bharti would be managing the front-end that involves opening retail outlets, Wal-Mart would take care of the back-end such as cold chains and logistics. However, on August 6, 2007, the two companies announced they will be starting about 10 to 15 wholesale cash-and-carry stores, each sized 50,000-100,000 square feet and employ about 5,000 people.{{cite news| url = http://www.andhranews.net/Business/2007/August/6-Mart-Bharti-sign-wholesale-cash-10798.asp| title = Wal-Mart, Bharti sign wholesale cash-and-carry deal-->
Private label brands
Today, approximately 40% of products sold in Wal-Mart are private label
store brands, or products offered by Wal-Mart and produced through subsidy contracts awarded to the lowest bidder.Stanley, John. " Brands versus Private Labels."
About.com. 2001-2002. Retrieved on
April 20, 2007. Wal-Mart began offering private label brands in 1991 with the launch of
Sam's Choice, a brand of drinks produced by Cott Beverages exclusively for Wal-Mart. Sam's Choice quickly became popular, and by 1993, was cited as #3 on the list of top beverage brands in the United States.Staff Writer. " Sam's Choice climbs beverage brand list - Wal-Mart's Sam's American Choice beverage brand."
Discount Store News. October 4, 1993. Retrieved on April 20, 2007. Other Wal-Mart brands include Great Value and Equate in the US and
ASDA Smart Price in the United Kingdom. A 2006 study recently found that, "While clearly other results in this study point to the success of other retailers, we are struck by the magnitude of mind-share Wal-Mart appears to hold in shoppers' minds when it comes to awareness of private label brands and retailers."Reyes, Sonia. " Study: Wal-Mart Private Brands Are Catching On."
Brandweek. August 21, 2006. Retrieved on August 23,
2006.
Corporate affairs
Wal-Mart's business model is based on selling a wide variety of general merchandise and marketing, at "always low prices." The company refers to its employees as "associates." All Wal-Mart stores in the US and Canada also have designated "greeters", whose general role is to welcome shoppers at the store entrance, and play a role in loss prevention.Mikkelson, Barbara. " Code Adam."
Snopes. December 31,
1998. Retrieved on August 3,
2006.
Unlike many other retailers, Wal-Mart does not charge a slotting fee to suppliers for their products to appear in the store.Nelson, Emily. " Too Many Choices --- Nine Kinds of Kleenex Tissue, Eggo Waffles in 16 Flavors: Blame Brand Managers."
Wall Street Journal. April 20,
2001. Retrieved on August 1, 2006. Alternatively, they focus on selling more popular products and often pressure store managers to drop unpopular products in favor of more popular ones, as well as manufacturers to supply more popular products. More than 70% of the goods sold in Wal-Mart are manufactured in
China.Jingjing, Jiang. " Wal-Mart's China inventory to hit US$18b this year."
China Daily. November 29,
2004. Retrieved on October 3, 2007.Gogoi, Pallavi. " Wal-Mart's China Card."
Business Week. July 26,
2005. Retrieved on October 3, 2007.
On
September 14,
2006, the company announced that it would be phasing out its
layaway program, citing declining use and increased costs.Staff Writer. " Wal-Mart Will Phase Out Layaway Program."
Wal-Mart. September 14,
2006. Retrieved on
October 8,
2006. Layaway was offered until
November 19, 2006, with merchandise pickup by
December 8, 2006. They plan to focus on alternative payment options, such as increased use of 6 and 12 month zero interest financing. The layaway location in most stores is now used for Wal-Mart's Site-To-Store feature.
Financial
In 2006, Wal-Mart ranked at number 67 of the 100 largest corporations in terms of profitability (profits divided by total revenue), behind retailers Home Depot, Dell and
Target Corporation, and ahead of Costco and Kroger.Staff Writer. " Fortune Global 500."
CNN/Fortune (magazine). July 24,
2006. Retrieved on July 25,
2006. For the fiscal year ending
January 31,
2006, Wal-Mart reported net income of $12.178 billion on $344.992 billion of sales revenue (3.5%
profit margin)." Wal-Mart Reports Record Fourth Quarter Sales and Earnings."
Wal-Mart. February 21, 2006. Retrieved on July 25,
2006. For the fiscal year ending
January 31,
2006, Wal-Mart's international operations accounted for approximately 20.1% of total sales.."."
Wal-Mart. 2006. Retrieved on
July 26,
2006. As of
Oct 11, 2007, net sales for the 35-week period ending Oct 5, 2007 was $241.8 billion, up 8.7% from the previous year's results." September Sales."
Wal-Mart. Oct 11, 2007. Retrieved on Oct 13,
2007.
Governance
Wal-Mart is governed by a fifteen-member
Board of Directors, which is elected annually by
shareholders. S. Robson Walton, the eldest son of founder Sam Walton, serves as Chairman of the Board, and
Lee Scott, the Chief Executive Officer, serves on the board as well. Other members of the board include
Aída Álvarez, James Breyer, M. Michele Burns,
James Cash, Jr., Roger Corbett, Douglas N. Daft,
David D. Glass, Roland A. Hernandez, Allen I. Questrom, Jack C. Shewmaker, Jim Walton, Christopher J. Williams, and Linda S. Wolf." Wal-Mart's Board of Directors."
Wal-Mart. Retrieved on October 13, 2007.
Notable former members of the board include Hillary Clinton (1985-1992)Harkavy, Ward. " Wal-Mart's First Lady."
The Village Voice. May 24, 2000. Retrieved on August 3, 2006. and Tom Coughlin (Wal-Mart) (2003-2004), who also served as Vice Chairman. Clinton left the board prior to the
United States presidential election, 1992, and Coughlin left the board in December, 2005 after pleading guilty to wire fraud and tax evasion for stealing hundreds of thousands of dollars from Wal-Mart.Boulden, Jennifer. " Wal-Mart Former Vice Chairman Coughlin Admits Fraud."
Bloomberg L.P.. January 31, 2006. Retrieved on
August 3, 2006. On
August 11, 2006, he was sentenced to 27 months of home confinement, five years of probation, and ordered to pay United States Dollar411,000 in restitution.Staff Writer. " Former Wal-Mart exec sentenced."
CNN. August 11, 2006. Retrieved on August 11,
2006.
Competition
In North America, Wal-Mart's primary competition includes
department stores like Kmart,
Target Corporation,
ShopKo, Meijer, or Canada's
Zellers,
Winners (store), or Giant Tiger. Wal-Mart's move into the grocery business in the late 1990s has also positioned it against major supermarket chains in both the
United States and Canada. Several smaller retailers, primarily dollar stores, such as Family Dollar and Dollar General, have been able to find a small niche market and compete successfully against Wal-Mart for home consumer sales.Stilgoe, John. Wal-Mart giant can be tamed
The Boston Globe, 2003-11-23. Accessed 2006-01-11. In 2004, Wal-Mart responded by testing their own dollar store concept, a subsection of some stores known as "Pennies-n-Cents."Berner, Robert. " Out-Discounting The Discounter."
Business Week. May 10,
2004.
Wal-Mart has faced competition in foreign markets. For example, in Germany, it had captured just 2% of German food sales following its entry into the market in 1997 and had remained "a secondary player" compared to competitor
Aldi which boasts 19% share of the German market.Ewing, Jack." Wal-Mart: Struggling In Germany."
BusinessWeek. April 11,
2005. Retrieved on July 27,
2006.In July 2006, Wal-Mart announced its withdrawal from Germany. Its stores are to be sold to German company METRO AGIn May 2006, Wal-Mart withdrew from the South Korean market when it agreed to sell all 16 of its South Korean outlets to
Shinsegae, a local retailer, for $882 million who are as of late 2006 re-branding the country's Wal-Marts as E-mart. Wal-Mart had originally entered the South Korea market in 1998.Sang-Hun, Choe. " Wal-Mart Selling Stores and Leaving South Korea."
International Herald Tribune. May 23, 2006. Retrieved on July 27, 2006. In the UK, Wal-Mart's ASDA subsidiary is the second largest chain after
Tesco.Fairlamb, David with Laura Cohn " A Bumpy Ride in Europe."
BusinessWeek. October 6,
2003. Retrieved on
July 27,
2006. Specifically, ASDA is a distant second to Tesco in the UK grocery market, and as of 2006 the gap is widening, based on market share figures published by
TNS Worldpanel.
Wal-Mart has struggled to export its brand elsewhere as it rigidly tried to reproduce its model overseas. In China, Wal-Mart hopes to find success by adapting and doing things the Chinese way. For example, early on Wal-Mart offended Chinese consumers by trying to sell packaged fish and meat. Chinese consumers insist food be freshly harvested, or even killed in front of them. Wal-Mart began displaying the meat uncovered, installed fish tanks and live animals for food and sales increased greatly.
In addition, under heavy pressure from the Communist Chinese government, Wal-Mart has accepted a form of organized labor in China. Chinese labor unions do not negotiate contracts but simply pay dues to the communist government "to secure the social order." Moreover, Chinese consumers may be more open to Americana than shoppers in Europe.http://www.msnbc.msn.com/id/15364026/site/newsweek/page/0/
Customer base
Each week, approximately 100 million customers, or one-third of the US population, visits Wal-Mart's US stores.Zimmerman, Ann; Hudson, Kris. " Managing Wal-Mart."
April 17,
2006. Retrieved on April 3, 2007. Wal-Mart customers place low prices as the most important reason for shopping at Wal-Mart, reflecting the "Low prices, always" message that Wal-Mart had from 1962 until 2006.Barbaro, Michael. " It’s Not Only About Price at Wal-Mart."
New York Times. March 2, 2007. Retrieved on
April 3,
2007. Wal-Mart's average US customer's income is below the national average, and analysts have recently estimated that more than one-fifth do not have a bank account, twice the national rate.Weston, Liz Pulliam. " The Basics: National Bank of Wal-Mart?"
MSN Money. Retrieved on April 3, 2007. A Wal-Mart financial report in 2006 also indicated that Wal-Mart customers are sensitive to higher utility costs and gas prices.Schumacher, Carol; Tureman, Pauline; Clark, Sarah. " Wal-Mart Reports Second Quarter Sales and Earnings."
Wal-Mart. August 15, 2006. Retrieved on
April 3,
2007. A poll prior to the
United States presidential election, 2004 indicated that 76% of voters who shopped at Wal-Mart once per week planned to vote for George W. Bush, while only 23% planned to vote for John Kerry." Zogby: Bush Job Approval—34%."
John Zogby. August 16, 2006. Retrieved on April 3,
2007. When measured against other similar retailers in the US, frequent Wal-Mart shoppers were rated the most politically conservative.Birchall, Jonathan; Yeager, Holly. "A purchase on psephology."
Financial Times. August 17,
2006. Page 9, US edition.
In 2006, Wal-Mart made steps to expand its US customer base, announcing a modification in its US stores from a, "one-size-fits-all," merchandising strategy to a custom-fitting merchandise assortment designed to, "reflect each of six demographic groups – African-Americans, the affluent, empty-nesters, Hispanics, suburbanites and rural residents."" Wal-Mart to drop one-size-fits-all approach."
CNBC. 2006. Retrieved on April 3,
2007. About six months later, the company went public with a variation on their customer profile: "Saving people money so they can live better lives." This reflects what Wal-Mart identifies as the three main groups that its 200 million customers are organized into: "brand aspirationals" (people with low incomes who are obsessed with names like KitchenAid), "price-sensitive affluents" (wealthier shoppers who love deals), and "value-price shoppers" (who like low prices and cannot afford much more). Wal-Mart has also made steps to appeal to more
Liberalism in the United States customers, for example, by rejecting the American Family Association's recommendations and carrying the DVD
Brokeback Mountain, a love story about two gay cowboys in Wyoming." Wal-Mart selling 'Brokeback' DVD despite anti-gay protest."
Canadian Broadcasting Corporation.
April 6,
2006. Retrieved on April 3,
2007.
Employee and labor relations
trade union, religious organizations,Sellers, Jeff M. " Women Against Wal-Mart."
Christianity Today. April 22,
2005. Retrieved July 31,
2006.Sellers, Jeff M. " Deliver Us from Wal-Mart?."
Christianity Today. April 22,
2005. Retrieved on
July 31, 2006. and environmental groupsKabel, Marcus. " Wal-Mart, Critics Slam Each Other on Web."
Washington Post. July 18, 2006. Retrieved on
July 31,
2006. have criticised Wal-Mart with regard to its policies and/or business practices. In particular, several labor unions blame Wal-Mart workers' unwillingness to j
{{Infobox_Company| company_name = Wal-Mart Stores, Inc.| company_logo = | company_type =
Department store#Discount department store/
Public company ()| company_slogan = Save Money, Live Better.
Always Low Prices. Always.
Save More. Smile More. (U.S.)
WE SELL FOR LESS every day! (Canada)],
Arkansas,
United States (1962)], Arkansas, United States| key_people =
Sam Walton (1918–1992),
EntrepreneurH. Lee Scott,
Chief executive officerS. Robson Walton, Chair (official)
Tom Schowe,
Chief financial officer| industry = Retailing| num_employees = 1.9 million (2007)Biesada, Alex. " Wal-Mart Stores, Inc."
Hoover's. Retrieved on
October 13, 2006.]s,
supermarkets, and hypermarkets Optical, Pharmacy, Portrait Studio]351.1 billion (2007)]11.3 billion (2007)]
Public company, currently one of the world's largest corporations (by revenues) according to the 2007 Fortune 500.Staff Writer. " Fortune 500."
CNN/Fortune (magazine). April 16, 2007. Retrieved on July 15, 2007. It was founded by
Sam Walton in
1962, Incorporation (business) on October 31, 1969, and listed on the New York Stock Exchange in 1972. It is the largest private employer in the world and world's fourth largest utility or commercial employer, only trailing the People's Liberation Army of People's Republic of China, the
National Health Service of the
United Kingdom and the
Indian Railways. Wal-Mart is the largest Grocery store Retailing in the United States, with an estimated 20% of the retail grocery and consumables business, and the largest toy seller in the U.S., with an estimated 45% of the retail toy business, having surpassed
Toys "R" Us in the late
1990s.
Wal-Mart operates in
Mexico as
Walmex, in the United Kingdom as
ASDA, and in
Japan as Seiyu Group Wholly owned operations are located in Argentina,
Brazil,
Canada,
Puerto Rico, and the UK. Wal-Mart's investments outside North America have produced mixed results. In
2006, Wal-Mart sold its retail operations in South Korea and
Germany due to sustained losses and a highly competitive market.
Wal-Mart has been the target of Criticism of Wal-Mart from some community groups,
women's rights groups,
grassroots organizations, and
Trade unions. Specific criticisms include the company's extensive foreign product sourcing, low rates of employee health insurance, resistance to union representation, and alleged sexism, among other things.
History
Sam Walton's retailing career began when he accepted a job offer at a JCPenney store in
Des Moines, Iowa on June 3, 1940 where he remained for 18 months. In 1945, he met with Butler Brothers, a regional retailer that owned a chain of
Five and dime called Ben Franklin Stores. Butler Brothers offered him a Ben Franklin store in
Newport, Arkansas.
Walton could not come to agreement on his lease renewal and could not find a new location in Newport; so he located a new variety store in Bentonville, Arkansas which he would open as another Ben Franklin franchise, but called "Walton's Five and Dime." Walton achieved higher sales volume by selling products with slightly smaller markups than most competitors.Frank, T.A. " A Brief History of Wal-Mart."
The Washington Monthly. April 1,
2006. Retrieved on
July 24, 2006.
On
July 2 1962, Walton opened the first Wal-Mart store, Wal-Mart Discount City and within five years the company expanded to 24 stores across the state of Arkansas and reached $12.6 million in sales. In 1968, it opened its first stores outside Arkansas, in Sikeston, Missouri and Claremore, Oklahoma." The Wal-Mart Timeline."
Wal-Mart (published on walmartfacts.com). Retrieved on
July 24, 2006.
The company was
incorporated as
Wal-Mart Stores, Inc. on October 31,
1969, and in
1970 opened its home office in Bentonville, Arkansas, and its first
distribution center. There were now 38 stores operating with 1,500 employees and sales of $44.2 million. The company began trading stock at this time as a
Public company on October 1,
1972, and was listed on the New York Stock Exchange shortly thereafter. The first stock split occurred in May 1971 at a market price of $47. By this time, Wal-Mart was operating in five U.S. state:
Arkansas, Kansas, Louisiana, Missouri and
Oklahoma, and entered
Tennessee in 1973, and Kentucky and Mississippi in 1974. As it moved into
Texas in
1975, there were 125 stores with 7,500 employees, and total sales of $340.3 million.
Wal-Mart continued to grow rapidly during the 1980s, and by its
Anniversary in 1987, there were 1,198 stores with sales of $15.9 billion and 200,000 associates. This year also marked the completion of the company's
satellite network, a $24 million investment, linking all operating units of the company with their Bentonville Office via two-way voice, data, and one-way video communication. At the time, this was the largest private satellite network, and allowed the corporate office to track inventory, sales, and send instant communication to their stores.Ranade, Sudhanshu. " Satellite adds speed to Wal-Mart."
The Hindu Business Line. July 17,
2005. Retrieved on
July 24,
2006. Company founder Sam Walton stepped down as CEO the following year, and was replaced by [David Glass.Longo, Donald. " Wal-Mart hands CEO crown to Glass - David Glass."
Discount Store News (available via FindArticles). February 15, 1988. Retrieved on July 24,
2006. Walton remained on as Chairman of the Corporate
Board of Directors, and the company also restructured their senior management positions, elevating a cadre of executives to positions of greater responsibility.
Also in 1988, the first
Wal-Mart Supercenter opened in Washington, Missouri.Staff Writer. " Wal-Mart tests similar hypermarkets - Hypermart USA, Wal-Mart SuperCenter."
Discount Store News. March 28,
1988. Retrieved on
April 19,
2007. Wal-Mart expanded their superstore concept during the 1990s, and shortly thereafter surpassed
Toys "R" Us in toy sales.Byrnes, Nanette; Eidam, Michael. " Toys 'R' Us: Beaten At Its Own Game."
Business Week. March 29, 2004. Retrieved on July 25, 2006. The company also opened overseas stores during this period, entering the
South American market in 1995 with stores in Argentina and Brazil, and purchasing
ASDA in the United Kingdom for $10 billion in 1999.Buerkle, Tom. " $10 Billion Gamble In U.K. Doubles Its International Business: Wal-Mart Takes Big Leap Into Europe."
International Herald Tribune. June 15,
1999. Retrieved on
April 19, 2007. In 1998, Wal-Mart entered the
grocery business, introducing their
Wal-Mart Neighborhood Market concept with three stores in Arkansas." Neighborhood Markets."
Wal-Mart (website). Retrieved on April 19,
2007. By 2005, estimates indicate that the company controlled approximately 20% of the retail grocery and consumables business.Ortiz, John. " Can Kroger slow Wal-Mart?"
Deseret Morning News. October 26, 2005. Retrieved on
July 25, 2006.
By 2000, as H. Lee Scott was named President and CEO of the company, Wal-Mart's sales increased to $165 billion." 2000 Annual Report: Net Sales."
Wal-Mart. Retrieved on
April 19,
2007. In 2002, Wal-Mart was listed for the first time on the Fortune 500 list of the world's largest corporations, with revenues of $219.8 billion and profits of $6.7 billion. The company was subsequently listed at #1 for every year after 2002 except for 2006.Staff Writer. " Fortune 500."
CNN/Fortune (magazine). April 17,
2006. Retrieved on July 15, 2007.
In 2005, Wal-Mart had $312.4 billion in sales, more than 6,200 facilities around the world, including 3,800 stores in the
United States and 2,800 international units, and employing more than 1.6 million associates worldwide. In fact, their U.S. presence had grown so rapidly that there were only small pockets of the country that remained further than 60 miles away from the nearest Wal-Mart. Also in 2005, focusing on becoming more ecologically-friendly, the company designed two new experimental stores, one in
McKinney, Texas and the other in Aurora, Colorado, featuring wind turbines, photovoltaic solar panels, biofuel-capable boilers, water-cooled refrigerators, and xeriscape gardens.Berner, Robert. " Can Wal-Mart Wear a White Hat?"
BusinessWeek. September 22,
2005. Retrieved on July 24, 2006.
In March 2006, Wal-Mart sought to attempt to appeal to a more affluent demographic, with the opening of a new supercenter in Plano, Texas, and is intended to compete against stores that some view as more upscale and appealing, such as
Target Corporation.Koenig, David. " Wal-Mart Targeting Upscale Shoppers."
ABC News. March 22,
2006. Retrieved on
July 25,
2006. The new store features wooden floors, wider aisles, a
sushi bar, a coffee/sandwich shop (with free Wi-Fi
Internet access), and higher-end items such as microbrew
beer, expensive wines, and high-end electronics. The exterior sports the less-common hunter green background behind the Wal-Mart letters instead of the trademark blue.
On
September 12,
2007, after 19 years, Wal-Mart introduced new advertising with the
slogan, "
Save Money Live Better," instead of "
Always Low Prices, Always". It commissioned Global Insight for the ads and the
report stated that as of 2006, the
retailer saves
United States families $2,500 yearly (up 7.3% from $2,329 , 2004). The new research found that the
reduction in
price levels due to Wal-Mart resulted to
savings for
consumers of $287 billion in 2006, which is $957 / person or $2,500 / household.Staff Writer. " Wal-Mart Rolling Out New Company Slogan."
Reuters via the
New York Times. September 12, 2007. Retrieved on September 26, 2007.
Subsidiaries
Wal-Mart's operations are comprised primarily in three retailing subsidiaries. Wal-Mart Stores Division U.S.,
Sam's Club (second biggest to Costco), and Wal-Mart International. Wal-Mart does business under nine different retail formats:
Big-box store, supermarkets,
general merchandise stores, bodegas (small markets), cash and carry stores,
Warehouse clubs, apparel stores, soft
discount stores and restaurants.
Wal-Mart Stores Division U.S.
, USA. Unlike smaller Wal-Mart stores, most Wal-Mart Supercenters feature double entrances and a few triple entrances (Main, Food, and Garden Center).., a suburb of the St. Louis, Missouri area.The
Wal-Mart Stores Division U.S. is Wal-Mart's largest business subsidiary, accounting for 67.2% of fiscal 2006 net sales. This segment consists of three traditional retail formats: department stores,
hypermarkets, and supermarkets, all of which are located in the
United States, as well as Wal-Mart's
online retailer,
walmart.com. Walmart.com was listed in the Top 500 largest e-retailers Guide by Internet Retailer in 2007. This list also incorporated other retailers such as
Target Corporation, Apple Inc., and
PartStore.com. PartStore.com Listed Among Internet Retailer's Top 500. Published by Forbes, May 23, 2007. Accessed on June 25, 2007. Additionally, in February 6, 2007, the company launched a "beta" version of their new movie download service,
mediadownloads.walmart.com, which sells 3,000 films and television episodes from all major studios and television networks.Staff Writer. " Wal-Mart Launches Online Movie Download Service."
Fox News. February 6,
2007. Retrieved on
February 14, 2007.
Wal-Mart Stores operates retail department stores selling a range of non-grocery products, though emphasis is now focused on the supercenters, which include more grocery items.
Wal-Mart Discount Stores
Wal-Mart Discount Stores are a chain of
discount department stores that range in size from 100,000 square feet (5,000 m²) to 224,000 square feet (21,000 m²) with an average size of approximately 102,000 square feet (9,500 m²). They carry some
general merchandise products and a selection of grocery. Many of these stores also feature a garden center, a
pharmacy,
Tire &
motor oil Express, optical center,
Photographic processing,
portrait studio, and a
fast food outlet. Some also have gasoline stations.
The first Wal-Mart store in
Rogers, Arkansas, has been remodeled and expanded, becoming a 24-hour Wal-Mart Supercenter. A similar Wal-Mart concept,
Discount City, opened in Rogers a year earlier, but all of these stores were later closed or converted into Discount Stores.
As of
May 31,
2007, there were 1,040 Wal-Mart Discount Stores in the United States. The busiest Wal-Mart in the world is in
Rapid City, South Dakota." Corporate Profile."
Wal-Mart. Retrieved on July 26, 2006.
Wal-Mart Supercenter
Wal-Mart Supercenters are a chain of hypermarkets that range in size from 98,000 square feet (9,000 m²) to 261,000 square feet (24,000 m²) with an average size of approximately 197,000 square feet (17,000 m²). They carry everything a Wal-Mart Discount Store does, as well as a full-line
supermarket (including
meat and
poultry,
baked goods,
delicatessen,
frozen foods,
dairy products, garden produce and fresh seafood). Many Wal-Mart Supercenters also feature a garden center, a pet shop, a pharmacy, a Tire & Lube Express, optical center, one-hour photo processing lab, portrait studio, and numerous alcove shops such as a cellular phone store, hair and nail salons, a video rental store, a family fun center, a branch of a local bank, and possibly a fast food outlet. Some locations also sell
gasoline, either through Murphy Oil Corporation, whose Wal-Mart stations are branded as "Murphy USA",
Sunoco, Inc., as "Optima", or Tesoro, who uses the "Mirastar" banner on theirs.
The first Supercenter opened in 1988 in
Washington, Missouri; a similar Wal-Mart concept,
Hypermart USA, opened in Garland, Texas, a year earlier, but all of those stores were later closed or converted into Supercenters. As of May 31, 2007, there were 2,326 Wal-Mart Supercenters in the United States.
Wal-Mart Neighborhood Market
Wal-Mart Neighborhood Markets are a chain of
supermarkets that average about 42,000 square feet (3,900 m²). They offer a variety of products (including a full-line of groceries, pharmaceuticals, health and beauty aids, photo developing services, and a limited selection of
general merchandise).
The first Neighborhood Market opened in 1998 in
Bentonville, Arkansas. As of May 31, 2007, there were 118 Neighborhood Markets in the
United States.
Sam's Club
Wal-Mart operates
Sam's Club, a chain of
warehouse clubs that sells
groceries and
general merchandise, often in large quantities or volume. Sam's Club stores are "membership" stores and customers can subscribe to a paid, annual membership. However, the stores are open to non-members and non-members can make purchases either by purchasing a day or annual membership or paying a surcharge based on the price of the purchase. Some locations also sell
gasoline. The first Sam's Club opened in 1983 in Midwest City, Oklahoma.
According to Wal-Mart's 2006 Annual Report, Sam's Club accounted for approximately 12.7% of fiscal 2006 sales. Competitors of Wal-Mart's Sam's Club division are
Costco, and the smaller BJ's Wholesale Club chain operating mainly in the eastern US.
As of May 31, 2007, there were 584 Sam's Clubs in the United States.
Wal-Mart International
., China.Wal-Mart's international operations comprise 2,701 stores in 14 countries outside the United States." Wal-Mart Announces Sale of German Business."
Wal-Mart. July 28,
2006. Retrieved on August 15, 2006. According to Wal-Mart's 2006 Annual Report, International accounted for approximately 20.1% of fiscal 2006 sales. Wholly owned operations are located in Argentina, Brazil,
Canada,
Puerto Rico and the
United Kingdom (UK). With 1.8 million employees worldwide, the company is the largest private employer in the US and
Mexico, and one of the largest private employers in Canada.."
Wal-Mart. Retrieved on
August 12, 2006.
Wal-Mart has operated in Canada since their acquisition of the Woolco division of F. W. Woolworth Company." Company Profile."
Wal-Mart Canada. Retrieved on
September 12, 2006. Today, they operate 278 locations employing 70,000 Canadians, with a local home office in
Mississauga, Ontario. On
November 8,
2006, Wal-Mart Canada's first three Supercentres opened in
Ancaster, Ontario,
London, Ontario, and
Aurora, Ontario. As of
January 31, 2007, there were six Wal-Mart Supercentres in Canada. As of November 30, 2006, there were six Sam's Clubs
Canada (all in Ontario: London, Ontario, Richmond Hill, Ontario, Vaughan, Ontario,
Cambridge, Ontario,
Pickering, Ontario, and
Toronto, Ontario). In December 2006, conversion of a Wal-Mart Discount Store into a Wal-Mart Supercentre has begun in Lethbridge, Alberta, making it the 7th in Canada and the first in Western Canada.
Sales in the fiscal year 2006 for Wal-Mart's UK subsidiary, ASDA (an abbreviation of
ASquith and
DAiries), were 42.7% of the International segment sales. In contrast to Wal-Mart's US operations, ASDA was originally and remains primarily a grocery chain, but it has a stronger focus on non-foods than most UK supermarket chains (a notable exception is
Tesco, UK's largest grocery & Non-food retailer). At the end of fiscal year 2006, there were 236 ASDA stores, 10 George stores, 5 ASDA Living and 43 ASDA small stores.
In addition to its wholly-owned international operations, Wal-Mart has joint ventures in
China and several majority owned subsidiaries. Wal-Mart's majority owned subsidiary in
Mexico is Walmex. In
Japan, Wal-Mart owns approximately 53% of Seiyu Group" Wal-Mart Reports Third Quarter Sales and Earnings."
Wal-Mart. November 14, 2006. Retrieved on
November 14, 2006. Additionally, Wal-Mart owns 51% of the Central American Retail Holding Company (CARHCO) formed from more than 360 supermarkets and other store formats, operating in 5 Central American countries: Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica." Wal-Mart SEC Form 10-K."
United States Securities and Exchange Commission. January 31,
2006. Retrieved on July 26,
2006.
In 2004, Wal-Mart bought the Bompreço supermarket chain, composed of 116 stores. Bompreço is the major supermarket chain in Northeastern Brazil. In late 2005, Wal-Mart took control of the Brazilian operations of Sonae Distribution Group through its new subsidiary, WMS Supermercados do Brasil, thus acquiring control of the Nacional and Mercadorama supermarket chains, the leaders in Rio Grande do Sul and
Paraná states. None of those operations were rebranded. As of August 2006, Wal-Mart operates 71 Bompreço stores, 27 Hiper-Bompreço stores, 15 Balaio stores and 3 Hiper-Magazines (all originally part of Bompreço). It also runs 19 Wal-Mart Supercenters, 13 Sam's Club stores and 2 Todo Dia stores. With the acquisition of Bompreço and Sonae, Wal-Mart is currently the third largest supermarket chain in Brazil, behind Carrefour and Companhia Brasileira de Distribuição.
In July 2006, Wal-Mart announced its withdrawal of operations from Germany because of sustained losses in the highly-competitive German market. The stores were sold to the German company METRO AG.Staff Writer. " Wal-Mart abandons German venture."
BBC News. July 28, 2006. Retrieved on July 31,
2006. The sale was completed in Wal-Mart's fiscal third quarter.
In November 2006, Wal-Mart announced a joint venture with
Bharti Enterprises to open "hundreds" of retail stores in
India. Since foreign corporations are not allowed to enter the retail sector in India directly, Wal-Mart is expected to operate through franchises and handle the wholesale end of the venture. A. Giridharadas, S. Rai, " Wal-Mart to Open Hundreds of Stores in India",
The New York Times." November 27, 2006. Retrieved on November 27, 2006. The partnership will involve two joint ventures. While Bharti would be managing the front-end that involves opening retail outlets, Wal-Mart would take care of the back-end such as cold chains and logistics. However, on August 6, 2007, the two companies announced they will be starting about 10 to 15 wholesale cash-and-carry stores, each sized 50,000-100,000 square feet and employ about 5,000 people.{{cite news| url = http://www.andhranews.net/Business/2007/August/6-Mart-Bharti-sign-wholesale-cash-10798.asp| title = Wal-Mart, Bharti sign wholesale cash-and-carry deal-->
Private label brands
Today, approximately 40% of products sold in Wal-Mart are private label store brands, or products offered by Wal-Mart and produced through subsidy contracts awarded to the lowest bidder.Stanley, John. " Brands versus Private Labels."
About.com. 2001-2002. Retrieved on
April 20, 2007. Wal-Mart began offering private label brands in 1991 with the launch of Sam's Choice, a brand of drinks produced by
Cott Beverages exclusively for Wal-Mart. Sam's Choice quickly became popular, and by 1993, was cited as #3 on the list of top beverage brands in the United States.Staff Writer. " Sam's Choice climbs beverage brand list - Wal-Mart's Sam's American Choice beverage brand."
Discount Store News. October 4,
1993. Retrieved on
April 20,
2007. Other Wal-Mart brands include Great Value and Equate in the US and
ASDA Smart Price in the United Kingdom. A 2006 study recently found that, "While clearly other results in this study point to the success of other retailers, we are struck by the magnitude of mind-share Wal-Mart appears to hold in shoppers' minds when it comes to awareness of private label brands and retailers."Reyes, Sonia. " Study: Wal-Mart Private Brands Are Catching On."
Brandweek. August 21, 2006. Retrieved on
August 23,
2006.
Corporate affairs
Wal-Mart's business model is based on selling a wide variety of general merchandise and marketing, at "always low prices." The company refers to its employees as "associates." All Wal-Mart stores in the US and Canada also have designated "greeters", whose general role is to welcome shoppers at the store entrance, and play a role in loss prevention.Mikkelson, Barbara. " Code Adam."
Snopes. December 31, 1998. Retrieved on August 3,
2006.
Unlike many other retailers, Wal-Mart does not charge a slotting fee to suppliers for their products to appear in the store.Nelson, Emily. " Too Many Choices --- Nine Kinds of Kleenex Tissue, Eggo Waffles in 16 Flavors: Blame Brand Managers."
Wall Street Journal. April 20, 2001. Retrieved on August 1,
2006. Alternatively, they focus on selling more popular products and often pressure store managers to drop unpopular products in favor of more popular ones, as well as manufacturers to supply more popular products. More than 70% of the goods sold in Wal-Mart are manufactured in
China.Jingjing, Jiang. " Wal-Mart's China inventory to hit US$18b this year."
China Daily. November 29,
2004. Retrieved on October 3, 2007.Gogoi, Pallavi. " Wal-Mart's China Card."
Business Week. July 26,
2005. Retrieved on October 3,
2007.
On
September 14, 2006, the company announced that it would be phasing out its layaway program, citing declining use and increased costs.Staff Writer. " Wal-Mart Will Phase Out Layaway Program."
Wal-Mart. September 14,
2006. Retrieved on October 8, 2006. Layaway was offered until November 19,
2006, with merchandise pickup by
December 8, 2006. They plan to focus on alternative payment options, such as increased use of 6 and 12 month zero interest financing. The layaway location in most stores is now used for Wal-Mart's Site-To-Store feature.
Financial
In 2006, Wal-Mart ranked at number 67 of the 100 largest corporations in terms of profitability (profits divided by total revenue), behind retailers Home Depot,
Dell and
Target Corporation, and ahead of
Costco and Kroger.Staff Writer. " Fortune Global 500."
CNN/Fortune (magazine). July 24, 2006. Retrieved on
July 25, 2006. For the fiscal year ending
January 31,
2006, Wal-Mart reported
net income of $12.178 billion on $344.992 billion of sales revenue (3.5% profit margin)." Wal-Mart Reports Record Fourth Quarter Sales and Earnings."
Wal-Mart. February 21,
2006. Retrieved on July 25,
2006. For the fiscal year ending January 31,
2006, Wal-Mart's international operations accounted for approximately 20.1% of total sales.."."
Wal-Mart. 2006. Retrieved on
July 26, 2006. As of Oct 11,
2007, net sales for the 35-week period ending Oct 5, 2007 was $241.8 billion, up 8.7% from the previous year's results." September Sales."
Wal-Mart. Oct 11, 2007. Retrieved on
Oct 13, 2007.
Governance
Wal-Mart is governed by a fifteen-member Board of Directors, which is elected annually by shareholders.
S. Robson Walton, the eldest son of founder Sam Walton, serves as Chairman of the Board, and Lee Scott, the Chief Executive Officer, serves on the board as well. Other members of the board include
Aída Álvarez, James Breyer, M. Michele Burns,
James Cash, Jr., Roger Corbett, Douglas N. Daft,
David D. Glass, Roland A. Hernandez, Allen I. Questrom, Jack C. Shewmaker,
Jim Walton, Christopher J. Williams, and Linda S. Wolf." Wal-Mart's Board of Directors."
Wal-Mart. Retrieved on
October 13,
2007.
Notable former members of the board include
Hillary Clinton (1985-1992)Harkavy, Ward. " Wal-Mart's First Lady."
The Village Voice. May 24,
2000. Retrieved on
August 3,
2006. and Tom Coughlin (Wal-Mart) (2003-2004), who also served as Vice Chairman. Clinton left the board prior to the United States presidential election, 1992, and Coughlin left the board in December, 2005 after pleading guilty to wire fraud and tax evasion for stealing hundreds of thousands of dollars from Wal-Mart.Boulden, Jennifer. " Wal-Mart Former Vice Chairman Coughlin Admits Fraud."
Bloomberg L.P.. January 31,
2006. Retrieved on
August 3,
2006. On
August 11,
2006, he was sentenced to 27 months of home confinement, five years of probation, and ordered to pay
United States Dollar411,000 in restitution.Staff Writer. " Former Wal-Mart exec sentenced."
CNN. August 11, 2006. Retrieved on August 11, 2006.
Competition
In
North America, Wal-Mart's primary competition includes
department stores like Kmart, Target Corporation,
ShopKo, Meijer, or Canada's Zellers, Winners (store), or
Giant Tiger. Wal-Mart's move into the grocery business in the late 1990s has also positioned it against major
supermarket chains in both the
United States and Canada. Several smaller retailers, primarily
dollar stores, such as Family Dollar and
Dollar General, have been able to find a small niche market and compete successfully against Wal-Mart for home consumer sales.Stilgoe, John. Wal-Mart giant can be tamed
The Boston Globe, 2003-11-23. Accessed 2006-01-11. In 2004, Wal-Mart responded by testing their own dollar store concept, a subsection of some stores known as "Pennies-n-Cents."Berner, Robert. " Out-Discounting The Discounter."
Business Week. May 10,
2004.
Wal-Mart has faced competition in foreign markets. For example, in Germany, it had captured just 2% of German food sales following its entry into the market in 1997 and had remained "a secondary player" compared to competitor Aldi which boasts 19% share of the German market.Ewing, Jack." Wal-Mart: Struggling In Germany."
BusinessWeek. April 11,
2005. Retrieved on
July 27,
2006.In July 2006, Wal-Mart announced its withdrawal from Germany. Its stores are to be sold to German company
METRO AGIn May 2006, Wal-Mart withdrew from the South Korean market when it agreed to sell all 16 of its South Korean outlets to Shinsegae, a local retailer, for $882 million who are as of late 2006 re-branding the country's Wal-Marts as
E-mart. Wal-Mart had originally entered the South Korea market in 1998.Sang-Hun, Choe. " Wal-Mart Selling Stores and Leaving South Korea."
International Herald Tribune. May 23,
2006. Retrieved on
July 27,
2006. In the UK, Wal-Mart's ASDA subsidiary is the second largest chain after
Tesco.Fairlamb, David with Laura Cohn " A Bumpy Ride in Europe."
BusinessWeek. October 6, 2003. Retrieved on July 27,
2006. Specifically, ASDA is a distant second to Tesco in the UK grocery market, and as of 2006 the gap is widening, based on market share figures published by TNS Worldpanel.
Wal-Mart has struggled to export its brand elsewhere as it rigidly tried to reproduce its model overseas. In China, Wal-Mart hopes to find success by adapting and doing things the Chinese way. For example, early on Wal-Mart offended Chinese consumers by trying to sell packaged fish and meat. Chinese consumers insist food be freshly harvested, or even killed in front of them. Wal-Mart began displaying the meat uncovered, installed fish tanks and live animals for food and sales increased greatly.
In addition, under heavy pressure from the Communist Chinese government, Wal-Mart has accepted a form of organized labor in China. Chinese labor unions do not negotiate contracts but simply pay dues to the communist government "to secure the social order." Moreover, Chinese consumers may be more open to
Americana than shoppers in Europe.http://www.msnbc.msn.com/id/15364026/site/newsweek/page/0/
Customer base
Each week, approximately 100 million customers, or one-third of the US population, visits Wal-Mart's US stores.Zimmerman, Ann; Hudson, Kris. " Managing Wal-Mart."
April 17,
2006. Retrieved on April 3,
2007. Wal-Mart customers place low prices as the most important reason for shopping at Wal-Mart, reflecting the "Low prices, always" message that Wal-Mart had from
1962 until
2006.Barbaro, Michael. " It’s Not Only About Price at Wal-Mart."
New York Times. March 2, 2007. Retrieved on
April 3, 2007. Wal-Mart's average US customer's income is below the national average, and analysts have recently estimated that more than one-fifth do not have a bank account, twice the national rate.Weston, Liz Pulliam. " The Basics: National Bank of Wal-Mart?"
MSN Money. Retrieved on
April 3, 2007. A Wal-Mart financial report in 2006 also indicated that Wal-Mart customers are sensitive to higher utility costs and gas prices.Schumacher, Carol; Tureman, Pauline; Clark, Sarah. " Wal-Mart Reports Second Quarter Sales and Earnings."
Wal-Mart. August 15, 2006. Retrieved on April 3,
2007. A poll prior to the United States presidential election, 2004 indicated that 76% of voters who shopped at Wal-Mart once per week planned to vote for
George W. Bush, while only 23% planned to vote for John Kerry." Zogby: Bush Job Approval—34%."
John Zogby. August 16, 2006. Retrieved on
April 3,
2007. When measured against other similar retailers in the US, frequent Wal-Mart shoppers were rated the most politically conservative.Birchall, Jonathan; Yeager, Holly. "A purchase on psephology."
Financial Times. August 17, 2006. Page 9, US edition.
In 2006, Wal-Mart made steps to expand its US customer base, announcing a modification in its US stores from a, "one-size-fits-all," merchandising strategy to a custom-fitting merchandise assortment designed to, "reflect each of six demographic groups – African-Americans, the affluent, empty-nesters, Hispanics, suburbanites and rural residents."" Wal-Mart to drop one-size-fits-all approach."
CNBC. 2006. Retrieved on
April 3, 2007. About six months later, the company went public with a variation on their customer profile: "Saving people money so they can live better lives." This reflects what Wal-Mart identifies as the three main groups that its 200 million customers are organized into: "brand aspirationals" (people with low incomes who are obsessed with names like KitchenAid), "price-sensitive affluents" (wealthier shoppers who love deals), and "value-price shoppers" (who like low prices and cannot afford much more). Wal-Mart has also made steps to appeal to more
Liberalism in the United States customers, for example, by rejecting the
American Family Association's recommendations and carrying the DVD
Brokeback Mountain, a love story about two gay cowboys in Wyoming." Wal-Mart selling 'Brokeback' DVD despite anti-gay protest." Canadian Broadcasting Corporation.
April 6,
2006. Retrieved on April 3,
2007.
Employee and labor relations
trade union, religious organizations,Sellers, Jeff M. " Women Against Wal-Mart."
Christianity Today. April 22,
2005. Retrieved
July 31,
2006.Sellers, Jeff M. " Deliver Us from Wal-Mart?."
Christianity Today. April 22,
2005. Retrieved on July 31, 2006. and environmental groupsKabel, Marcus. " Wal-Mart, Critics Slam Each Other on Web."
Washington Post. July 18,
2006. Retrieved on
July 31, 2006. have criticised Wal-Mart with regard to its policies and/or business practices. In particular, several labor unions blame Wal-Mart workers' unwillingness to j
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