WAL-MART STORES, INC.

Wal-Mart Stores, Inc.

Abstract

Wal-Mart Stores, Inc. is a U.S. multinational company specializing in retail, founded by Sam Walton and now headed by his eldest son, S. Robson Walton.

Wal-Mart always strives to “provide quality products at an everyday low price and with extended customer service”. They have adopted a series of strategies which range from loyalty programs for customers to e-tailing. Some of the major strategies include building divisions, which include: smaller stores built in small communities with a population of less than 5000 people; this strategy allows Wal-Mart to give special attention to customers in smaller markets in rural America. Another division is the Sam's Club which is basically a membership only cash and carry operations, in which only wholesale operations are carried out. Customers have to pay a membership fee to be a part of the club in which they get to buy goods in bulk. Supercenters are another division in Wal-Mart whereby groceries, are combined with general merchandise “giving customers a one-stop shopping experience” this “one-stop” convenience has appealed to a large number of customers thereby making the supercenters to become one of the most important retail concepts on the landscape. Wal-Mart now operates online under walmart.com which is basically seen as another store possibility. The most important and probably most ruthless strategy adopted by Wal-Mart is predatory pricing.

Wal-Mart Stores, Inc.

Overview

Wal-Mart Stores, Inc. is a U.S. multinational company specializing in retail, founded by Sam Walton and now headed by his eldest son, S. Robson Walton.

Founded under that name in 1962, it has grown rapidly in Arkansas and led all U.S. begin to internationalize from 1991. In Europe, stores are present in Great Britain under the name Asda. Walmart is now attacking the market Asia. Based in China since 1996, the group employed about thirty thousand workers in this country in 2006. It is also present in Japan under the name Seiyu. In 2005, 20 million customers attending the Walmart on average each day. (Thomas, 2005)

Walmart is the largest general retailer in the United States with 3500 stores and 20% of estimated market share and the largest distributor of toys with a 45% estimated market share, having surpassed Toys "R" Us in the late 1990s.

Business organization

The company focuses on three main distribution networks: Wal-Mart Stores Division U.S., Sam's Club and Wal-Mart International. The company works with nine different sizes of stores: supercenters, food and drugs, general merchandise stores, bodegas (small retailers), cash and carry stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants. (Michael, 2006)

Wal-Mart Stores Division U.S.

Wal-Mart Stores Division U.S. is the largest distribution network, representing 67.2% of sales for fiscal year 2006. This segment consists of three store formats in the United States: Discount Stores, Supercenters and Neighborhood Markets. This division also includes Walmart.com, the online sales site.

Sam's Club

The Sam's Club is a new retail concept: warehouses members. Its size is relatively small (the average size of a Sam's Club is 132,000 square feet); each store employs 160 to 175 people for ...