Walmart Inc., formerly known as Wal-Mart Stores, Inc., is an American multinational retail corporation.
Portfolio:
- Hypermarkets (Supercenters): These large stores combine general merchandise with a full-scale grocery store. They offer a wide range of products, from electronics and apparel to fresh produce and household essentials.
- Discount Department Stores: Walmart’s discount stores provide affordable goods across various categories. These stores focus on value pricing and convenience.
- Grocery Stores: Walmart operates neighborhood markets that cater to local communities. These smaller stores emphasize groceries and everyday essentials.
Business strategies:
- Geographical Monopolies: Walmart strategically places stores in rural areas to avoid direct competition from other large retailers.
- Efficiency Optimization: The company streamlines supply chains and adopts cost-effective practices to enhance efficiency.
Commitment:
- Walmart’s commitment to low prices, convenience, and value has made it a prominent player in the retail industry worldwide.
History:
- Walmart Inc., founded by Sam Walton in 1962, has a rich history that spans several decades. Let’s delve into its journey:
- Walton’s 5 & 10: The story begins in 1950, when Sam Walton purchased a store from Luther E. Harrison in Oklahoma City, Oklahoma. He opened it as Walton’s 5 & 10, a discount store offering a variety of goods.
- The Birth of Walmart: In 1962, the first official Walmart store opened in Rogers, Arkansas. This marked the beginning of a retail giant that would revolutionize the industry.
- Expansion and Innovation: Walmart expanded rapidly within Oklahoma and beyond. The company introduced innovative practices, such as everyday low prices and efficient supply chains.
- Hypermarkets and Supercenters: Walmart’s hypermarkets (also known as Supercenters) combined general merchandise with full-scale grocery stores. These large stores became a hallmark of the brand.
- Global Reach: Over the years, Walmart expanded globally, reaching communities worldwide. Its commitment to saving money and improving lives resonated with customers everywhere.
- Corporate Impact: Walmart’s influence extended beyond retail. The company focused on sustainability, community engagement, and philanthropy.
- Today, Walmart stands as one of the world’s largest retailers, with a mission to help communities save money and live better.
Financials:
- Q1 2024 Financial Results:
- Net Income: $1.67 billion (a decrease of 18.5% YoY)
- Revenue: $152 billion (a rise of 7.6% YoY).
- Annual Financial Highlights (Fiscal Year Ended January 31, 2023):
- Net Sales: Walmart International contributed $101.0 billion (18% of consolidated net sales).
- Gross Profit Rate: Walmart U.S. had a higher gross profit rate compared to Walmart International due to format mix.
- For more detailed financial statements, you can explore:
Walmart’s Financial Statements on WSJ.
Walmart’s Financial Statements on MacroTrends.
Walmart’s 2023 Annual Report.
Competitive advantages that set Walmart apart from other retailers:
- Selling Low Priced Goods:
- Walmart’s philosophy revolves around “Everyday low prices.” Their commitment to providing daily necessities at lower prices than competitors has made them a go-to destination for budget-conscious shoppers.
- Best Customer Services:
- Walmart prioritizes superior customer service. They not only focus on low prices but also offer various services both online and offline. Their 90-day return policy without receipts and digital tools for a seamless shopping experience demonstrate their dedication to customers.
- Cost Leadership:
- Balancing low prices with healthy profit margins is no easy feat. Walmart achieves this through efficient resource utilization, technology investments, and economies of scale. Their cost-effective approach keeps them ahead in the game.
- Market Saturation:
- Walmart reaches places where other retailers hesitate to venture. By catering to small towns and low-population areas, they’ve achieved market monopoly in several locations. Their foothold extends even to pet owner communities, illustrating their diverse reach.
- Efficient Supply Chain Management:
- Walmart’s investment in supply chain and warehouse management is unparalleled. They maintain strong relationships with vendors and ensure seamless operations across their vast network of stores.
- Global Expansion:
- From a single store in the US, Walmart has expanded to 28 countries with 11,700 stores worldwide. Their speed of global penetration is remarkable.