PRESENTATION

ON
WAL-MART RETAILCHAIN

PRESENTED BY
ASHISH GUPTA
M.B.A- SEC-A
G.L.A.I.T.M (Mathura)
 Wal-Mart Basics
• Wal-Mart Stores, Inc.
• TYPE - Discount department store/Public
• Founded- Rogers, Arkansas, USA (1962)
• Headquarters- Bentonville, Arkansas, USA
Leeds, West Yorkshire, UK, (ASDA)
• Key people- Sam Walton (1918–1992), Founder
John Menzer, CEO
S. Robson Walton, Chairman
Tom Schowe, CFO Industry Retail
• Products - Discount Stores, Supercenters
Neighborhood Markets
• Revenue US$ - 351.1 billion (2007)
• Net income US$ - 11.3 billion (2007)
• Total assets US$- 151.193 billion (2007)
• Total equity US$ - 61.573 billion (2007)
• Employees - 1.9 million (2007)
• Slogan - Save Money, Live Better. (U.S.)
WE SELL FOR LESS every day! (Canada)
• Website - http://www.walmart.com/
• Wal-Mart Stores, Inc. is an American public corporation that
runs a chain of large, discount department stores.

• It is the world's largest public corporation by revenue,

according to the 2007 Fortune Global 500 .

• It was founded by Sam Walton in 1962, incorporated on

October 31, 1969, and listed on the New York Stock Exchange
in 1972.

• It is the largest private employer in the world .

• Wal-Mart is the largest grocery retailer in the United States,

with an estimated 20% of the retail grocery and consumables
business, as well as the largest toy seller in the U.S., with an
estimated 22% share of the toy market.
 1960s
• 1962 - Company
founded with opening of
first Wal-Mart in Rogers,
Ark.
• 1967 - Wal-Mart's 24
stores total $12.6 million
in sales.
• 1969 - Company
incorporated as Wal-
Mart Stores, Inc. on Oct.
31.
 1970s
• 1970 - Wal-Mart opens first distribution
center and home office in Bentonville, Ark.

• 1970 – Wal -Mart stock first traded over

the counter as publicly-held company.

• 1971- First 100 percent stock-split in May.

Market price: $47.

• 1972 - Second 100 percent stock split in

March. Market price: $47.50.

• 1975 - Third 100 percent stock split in

August. Market price: $23.

• 1977 - Wal-Mart makes first acquisition, 16

Mohr-Value stores in Michigan and Illinois.

• 1979 – Wal -Mart is the first company to

reach $1 billion in sales in such a short
period of time: $1.248 billion. Wal-Mart
now has 276 stores, 21,000 associates
and is in its 11th state: Alabama.
 1980s
• 1980 - Fourth 100 percent stock split in
November. Market price: $50.

• 1981 - Wal-Mart makes its second

acquisition with 92 Kuhn's Big K stores.

• 1983 - Sixth 100 percent stock split in June.

Market price: $81.625.

• 1983 - For eighth year straight Forbes

Magazine ranks Wal-Mart No. 1 among
general retailers.

• 1984 - Sam Walton does the hula at

high noon on Wall Street, making good
on promise to associates after company
achieves pre-tax profit of 8 percent in
1983.

• 1985 - Seventh 100 percent stock split

in September. Market price: $49.75.
• 1985 - Wal-Mart has 882 stores with sales
of $8.4 billion and 104,000 associates.
Company adds stores in Wisconsin and
Colorado.

• 1987 - Eighth 100 percent stock split in

June. Market price: $66.625.

• 1987 - Wal-Mart's 25th anniversary: 1,198

stores with sales of $15.9 billion and
200,000 associates.

• David Glass named chief executive

officer of Wal-Mart Stores, Inc.

• 1988 - First Supercenters opened in

Washington, Mo.

• 1988 - Ninety percent of Wal-Mart

stores have bar-code scanning
capabilities.

• 1989 - Wal-Mart is now in 26 states

with the addition of Michigan, West
Virginia and Wyoming.
 1990s
• 1990 - Ninth 100 percent stock
split in June. Market price: $62.50.

• 1991 - "Sam´s American Choice"

brand products introduced.

• 1991- -International market

entered for first time with the
opening of two units in Mexico
City.
• 1992- President George Bush
presents Sam Walton with the
Medal of Freedom.
• 1992 - Sam Walton passes away
April 5.
• 1992 - S. Robson Walton named
chairman of the board April 7.

• 1993 - Wal-Mart International

division formed with Bobby Martin
as president.

• 1993 - Tenth 100 percent stock split

in February. Market price: $63.625.

• 1994 - 3 value clubs open in Hong

Kong. Canada has 123 stores and
Mexico has 96.

• 1994 - 122 Wool co stores in

Canada acquired.
• 1995 - Wal-Mart Stores, Inc. has
1,995 Wal-Mart stores, 239
Supercenters, 433 Sam's
Clubs and 276 International stores
with sales at $93.6 billion and
675,000 associates.

• 1996 - Wal-Mart enters China

through a joint-venture agreement.

• 1996 - Wal-Mart has first $100

billion sales year, with sales
totaling $118.1 billion for 1997 per
AR ´98.

• 1997 - Wal-Mart introduces One

Source nutrition centers.
• 1998 - Wal-Mart exceeds $100
million in annual charitable
contributions, with donations
totaling $102 million.

• 1998 - Wal-Mart enters Korea

through a joint venture agreement.

• 1999 - Wal-Mart has 1,140,000

associates, making the company
the largest private employer in the
world.
• 1998 - Wal-Mart introduces
Neighborhood Market concept with
three stores in Arkansas.
• 1999 - Wal-Mart acquires the ASDA
Group plc. in the United Kingdom
(229 stores).

• 1999 - Wal-Mart ranked #1

Corporate Citizen in America in the
1999 Cone/Roper Report, an annual
national survey on philanthropy and
corporate citizenship.

• 1999 - Eleventh 100 percent stock

split in March. Market price: $89.75.
 2000s
• 2000 - Wal-Mart ranked 5th by
FORTUNE magazine in its Global Most
Admired All-Stars list.

• 2000 - H. Lee Scott named president

and CEO of Wal-Mart Stores, Inc.

• 2001 - Wal-Mart named by

FORTUNE Magazine as the 3rd
most admired company in America.

• 2002 - Wal-Mart received the 2002

Ron Brown Award, the highest
Presidential Award recognizing
outstanding achievement in
employee relations and community
initiatives.
• 2002 - Wal-Mart ranked #1
on the FORTUNE 500 listing.
• 2002 - Wal-Mart has the
biggest single day sales in
history: $1.43 billion on the • 2005 - In McKinney, Texas,
day after Thanksgiving.
• 2003 - Wal-Mart named by
FORTUNE magazine as the
most admired company in
America.
• 2005-Wal-Mart launches the
• 2004 - FORTUNE magazine
placed Wal-Mart in the top
spot on its "Most Admired
Companies" list for the
second year in a row.
• 2005-Wal-Mart Stores, Inc.
leads the corporate drive to
assist in U.S. hurricane relief
efforts with $18 million in cash
donations.
and Aurora, Colorado, Wal-
Mart creates experimental
stores that save energy,
conserve natural resources,
and reduce pollution.
Acres for America program,
which will conserve critical
wildlife habitats for future
generations.
 Awards & Accolades
• Wal-Mart was named one of the Top 10 U. S. Companies for Asian-
Americans by Asian Enterprise magazine in 2007.

• In 2007, Working Mother magazine named Wal-Mart as a 2007 Best

Company for Multicultural Women.

• Wal-Mart was named to the Diversity Inc Top 50 Companies For Diversity
list for 2007.

• In 2007, Wal-Mart received the Spirit of Excellence Corporate Award from

the American Bar Association.

• In 2007, the National Association of Female Executives recognized Wal-

Mart as one of the Top Companies for Female Executives.

• In 2007, Wal-Mart was recognized for excellence in corporate philanthropy

when it received The Salvation Army's Evangeline Booth Award.

• In 2006, Wal-Mart was named one of “The 40 Best Companies for

Diversity” by Black Enterprise magazine.
 SUBSIDIARIES
Wal-Mart's operations primarily comprises three
retailing subsidiaries:
• Wal-Mart Stores Division U.S.
• Sam's Club, and
• Wal-Mart International
 Wal-Mart Discount Stores:
• Founder Sam Walton opened his first store in 1962,
• Wal-Mart now has more than 1,000 discount stores in the
United States.
• Wal-Mart discount stores offer a variety of quality, value-
priced general merchandise and a pleasant, convenient
shopping experience.
• The discount stores average 107,000 square feet, employ
an average of 225 associates and offer 120,000 items.
• The stores feature wide, clean and stocked with quality
items including: family apparel, automotive products,
health and beauty aids, home furnishings, electronics,
hardware, toys, sporting goods, lawn and garden items, pet
supplies, jewelry, and house wares .
Wal-Mart discount
department store
 Wal-Mart Supercenters
• Developed in 1988 to meet the growing demand for one-stop family
shopping.

• Wal-Mart Supercenters today number more than 2,300 nationwide and most
are open 24 hours a day for the ultimate in convenience.

• Supercenters save customers time and money by combining full grocery

lines and general merchandise under one roof at Wal-Mart’s signature Every
Day Low Prices.

• In addition to general merchandise, Supercenters feature bakery goods, deli

foods, frozen foods, meat and dairy products, and fresh produce.

• Supercenters also are home to many specialty shops such as vision centers,
Tire & Lube Expresses, Radio Grill, McDonald’s or Subway restaurants,
portrait studios and one-hour photo centers, hair salons, banks, and
employment agencies.

• Supercenters average 187,000 square feet, employ 350 or more associates

on average and offer 142,000 different items.
Wal-Mart Supercenter in Madison Heights, Virginia
Wal-Mart Supercentre in Canada
 Wal-Mart Neighborhood Markets
• Neighborhood Markets offer a convenient shopping experience for
customers who need groceries, pharmaceuticals and general
merchandise.

• Generally, they are located in markets with Wal-Mart Supercenters,

supplementing a strong food distribution network and providing added
convenience while maintaining Wal-Mart’s Every Day Low Prices.

• First opened in 1998, the now more than 120 Neighborhood Markets,
averaging 42,000 square feet, feature a wide variety of products,
including - fresh produce, deli foods, fresh meat and dairy items,
health and beauty aids, one-hour photo and traditional photo
developing services, drive-through pharmacies, stationery and paper
goods, pet supplies, and household chemicals.

• Neighborhood Markets employ 95 associates on average and offer

about 29,000 items.
Wal-Mart Neighborhood Market in Winter Springs,
Florida
 Sam’s Club
• At Sam’s Club we exist solely to help small business
owners succeed nationwide. Each day more than 584
Sam’s Club locations, averaging 132,000 square feet.
• According to the U. S. Small Business
small businesses represent 99.7 percent of all employers
and have generated 60 to 80 percent of net new jobs
annually Owners and operators of local businesses – such
as offices, child care, schools, restaurants, motels,
vending companies, churches, contractors and beauty
shops – stand to gain the most from Sam’s Club, which
offers a convenient and cost-efficient warehouse for these
businesses to purchase materials and supplies.
• Each Sam’s Club employs an average of 160 to 175
associates .
Wal-Mart store in Mexico City
Wal-Mart store in Shenzhen,
China
Wal-Mart's UK subsidiary, ASDA
Those who disagree with opening a
Wal-Mart in Ashland
 EVOLUTION OF RETAIL
Modern Formats/
Historic/Rural Traditional/Pervasive Government
International
Reach Reach Supported
Exclusive Brand
Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
PDS Outlets
Khadi Stores
Cooperatives

Convenience Stores
Mom and
Pop/Kiranas

Weekly Markets
Village Fairs
Melas

Source of Neighborhood Availability/ Low Shopping

Entertainment Stores/Convenience Costs / Experience/Efficiency
Distribution
 WAL-MART IN INDIA
• Wal-Mart enters India in 50:50 JV with Bharti.
• The first of the stores, which will sell groceries, consumer
appliances and fruits and vegetables to retailers and small
businesses, is slated to open in north India by the end of 2008.
• Bharti Retail, the 100-per cent subsidiary of Bharti Enterprises,
that will own and manage the retail stores, has entered into a
franchise agreement with Wal-Mart which will provide technical
support to Bharti retail .
• We are delighted to partner with Wal-Mart
for wholesale cash-and-carry and back-
end supply chain management operations
in India," –Sunil Bharti Mittal, chairman
and Group CEO, Bharti Enterprises.
• Wal-Mart's global expertise in supply chain
and logistics will bring enhanced
efficiencies across the retail ecosystem.
• Mike Duke, vice chairman, Wal-Mart Stores, Inc.
“ We are delighted that, in Bharti, we have a
well-respected partner who has a deep
understanding of the local market.”
 Wal-mart Strategy
• “Low Price Everyday”
• Effective use of logistics management
• Effective inventory control
• Bargaining power over suppliers
• Global Expansion for new market opportunity