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A unique feature of Wal- Mart retailing is that it is virtually recession proof. In times of economic downturn, consumers flock to discount retailers. During the recession of 1974-75,sales expanded 42 percent; in the 1981-82 recessions, sales grew 44 percent; and therecession of 1990s, sales grew 30 percent. As such, Wal-Mart is not affected by economicdownturns like many other retailers.Wal-Mart has obtained a distinct competitive advantage by targeting small, ruralcommunities, which leads to lower operating cost .this advantage result from lower rents,moderate wages. and the absence of unionization. In addition, real estate is significantlycheaper, and smaller communities have a loyal and productive workforce.Although the store location strategy was innovative, several other factors have played astrong role in valuating Wal-mart the top of the retail mountain. For instance, Mr. Sam¶sManagement practices were even moretrend setting than his store location strategy. For example employees are referred to as employees; instead they are called associates .Other factors contributing to Wal-Mart success include rigorous cost control, an excellentdistribution Network, and technological advantageWal ±Mart proudly moves up in Fortune¶s list of the top ten ³America¶s Most admiredCompanies in 200, rising to fifth on the list.
Sam Walton opened the first store in 1962 in Rogers, Arkansas.
Within 5 years there were 25 Wal-mart stores earning total revenue of $12.6 million insales.
In 1972 Wal-mart was listed in the NYSE.
In 1991, Wal-Mart became an international company when we opened a Sam's Club near Mexico City. Just two years later, Wal-Mart International was created.
In 2005 Wal-mart incorporated sustainability in it¶s business under their CEO H LeeScott Jr.