WALMART:An Overview

Wal-Mart stores Inc. (NYSE:WMT) is an American public corporation that runs a chain of
large discount department stores and a chain of membership required warehouse stores. In 2010
it was the world’s largest public corporation by revenue, according to the Forbes Global 2000
for that year.The company was founded by Sam Walton in 1962,incorporated in October
31,1969 and publicly traded on the New York Stock Exchange in 1972.Wal-Mart is
headquartered in Bentoville,Arkansas, and is the largest majority private employer and the
largest grocery retailer in United States and also the largest retailer in the world.

Wal-Mart operates under its own name in the U.S,including the 50 states and Puerto Rico. Wal-
Mart operates in Mexico as Walmex,in U.K as Asda,in japan as Sieyu and in India as Best
Price.It has wholly owned operations in Argentina,Brazil and Canada.

Walmart store in U.K

Following is the list of brands owned by Wal-Mart:

Sam's Choice

Sam's Choice, originally introduced as Sam's American Choice in 1991, is premium retail brand in food and
selected hard goods. Named for Sam Walton, founder of Walmart, Sam's Choice forms the premium tier of
Walmart's two-tiered core corporate grocery branding strategy that also includes the larger Great Value brand of
discount-priced staple items.

Great Value

Great Value was launched in 1993 and forms the second tier, or national brand equivalent ("NBE"), of
Walmart's grocery branding strategy.

As Walmart's most extensively developed retail brand, covering hundreds of household consumable items, the
Great Value line includes sliced bread, frozen vegetables, frozen dinners, canned foods, light bulbs, trash bags,
and many other traditional grocery store products. The wide range of items marketed under the Great Value
banner makes it Walmart's top-selling retail brand.

The Great Value brand can also be seen in Canada, Mexico, Argentina and Brazil and some Trust Mart stores in
Xi'an, Shaanxi Province, China through a partnership with Walmart.

Equate

Equate is a brand used for consumable pharmacy and health and beauty items, such as shaving cream, skin
lotion, over-the-counter medications, and pregnancy tests. Before its takeover by Walmart, the formerly
independent Equate brand sold consumer products at both Target and Walmart at lower prices than those of
name brands. Equate is an example of the strength of Walmart's private label store brand. In a 2006 study, The
Hartman Group marketing research firm issued a report which found that "Five of the top 10 "likely to
purchase" private label brands are managed by Wal-Mart including: Great Value, Equate, Sam's Choice, Wal-
Mart and Member's Mark (Sam's Club), per the study." The report further noted that "...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." [2].

] Ol' Roy

Ol' Roy is Wal-Mart's store brand of dog food. Its namesake comes from Sam Walton's bird dog, and has
become the number-one selling brand of dog food in the United States, surpassing Nestle's Purina. Ol' Roy was
created in 1983.[3]

Additional brands
Apparel

 Faded Glory is a brand for classic Americana clothing and footwear.

 George is a brand of more formal clothing for men, women and children. It also includes men's dress
shoes and wallets. It was created by the British retailer ASDA in 1990; Walmart has maintained the
brand after buying ASDA in 1999 and has since expanded it to other markets, notably the US and
Canada.
 Jesse James Industrial Workwear is a brand of men's work clothing, named for the motorcycle builder
Jesse James.
 No Boundaries, usually abbreviated as NOBO, is a line of apparel targeted at teenagers and young
college students.
 Puritan is a brand for men's basic clothing including shirts, pants, undergarments, socks, ties, and some
accessories.
 Simply Basic was previously a brand used for health and beauty items, but is now used primarily for
women's sleepwear.
 White Stag is a brand for women's clothing, footwear, and basic jewelry.

Homelines

 Better Homes and Gardens is a product line with designs inspired from the popular magazine of the
same name.
 Canopy is a home product line that features coordinated solutions for rooms and other domestic goods.
Some Canopy products are made with organic cotton.
 Hometrends products include small furniture, tableware and various home decor accessories, such as
rugs and faux plants.
 Mainstays products include curtains, bedding, some small home furnishings, and various other
products, including office supplies and kitchen utensils.
 your zone is a home product line that tailors toward teenagers and college students.

Others

 @ the Office is a brand used for office supplies and stationery.

 Best Occasions is a brand used for party decorations and accessories, such as candles and hats.
 Clear American is used for carbonated and flavored water. Was previously known as Sam's Choice
Clear American.
 Color Place is the brand used for paint and painting tools. Color Place paint is made by Valspar.
 EverStart is the brand for automotive and lawn mower batteries. The brand is also used for battery
related accessories, such as jumper cables.
 Fire Side Gourmet is used for pre-cooked burgers and steaks, and was previously under the Sam's
Choice label.
 Gold's Gym is used for athletic and exercise equipment such as weights. Named after and licensed from
the chain of fitness centers.
 Holiday Time is used for Christmas items such as Christmas trees, decorations, and wrapping paper.
 Kid Connection is used primarily for children's toys, but was also used for children's clothing and
shoes.
 Marketside is a brand of fresh foods usually found in Walmart's deli, produce, and bakery departments,
such as salads, soups, breads, and sandwiches.
 Ozark Trail is a brand used for outdoor equipment and footwear.
 Parent's Choice is a brand used for diapers, baby food and infant formula.
 Protege is a brand consisting of luggage and travel accessories.
 Special Kitty is a brand of cat food and litter.
 SuperTech is Walmart's brand of motor oil. The brand is also used on other consumable automotive
products, such as oil filters, windshield wiper fluid, and transmission fluid.
WALMART ENTERS INDIA
On November 27, 2006, Wal-Mart Stores, Inc (Wal-Mart), the world's largest retailer, and
Bharti Enterprises Ltd. (Bharti), a leading business group in India, signed a Memorandum of
Understanding (MoU) to explore business opportunities in the Indian retail industry. This joint
venture marked the entry of Wal-Mart into the Indian retailing industry.

The wholesale retailing venture, Bharti Wal-Mart Private Ltd, is a wholesale cash-and-carry and
back-end supply chain management, the two companies said, in line with government of India
guidelines that prohibit foreign multi brand retail operators in the country, though foreign
single-brand retailers are allowed a 51-per cent stake in joint ventures.

The retail industry in India is estimated at about US$ 300 billion and is expected to grow to
US$ 427 billion in 2010 and US$ 637 billion in 2015. Moreover, only 3 percent of the Indian
retail industry was in the organized sector. Foreign retailers were keen to enter India's rapidly
growing retail market. However, the government had permitted retailers of single brand
products to own a majority stake in a joint venture with a local partner (with prior government
permission). Retailers of multi-brands were only permitted to operate through franchises and
licencees, or a cash-and-carry wholesale model. The Bharti Wal-Mart business-to-business
(B2B) wholesale cash-and-carry joint venture will serve kirana (grocery shops) stores, fruit and
vegetable resellers, restaurants and other business owners. It also will serve other retailers such
as Bharti Retail, which is setting up a chain of stores in India that are 100 per cent owned and
operated by Bharti. Bharti Wal-Mart Private Limited will bring modern supply chain and back-
end logistics expertise to India, bringing Wal-Mart''s global best practices in such areas as just-
in-time inventory, retail information systems, cold chain infrastructure, GPS for truck and
trailer tracking, and fuel management systems.
Wholesale cash-and-carry operations provide small retailers and business owners a wide range
of quality products at competitive wholesale prices that help them enhance their businesses and
profitability.

At present Bharti-Walmart has stores in India in the areas of Amritsar,Zirakpur and Jalandhar,
named BEST PRICE MODERN WHOLESALE, all the three being in Punjab. As all the three
stores are of Cash and Carry format which means that the goods are sold from a wholesale
warehouse .The customers settle the invoice on the spot and in cash and carry the good
themselves.

Bharti-Walmart’s BEST PRICE MODERN WHOLESALE store in India

What is India Gaining out of it?
 Wholesale Cash-and-Carry to Benefit Retailers
Best Price Modern Wholesale store is a one-stop shop that meets the day-to-day needs of
restaurant
owners, hoteliers, caterers, fruit and vegetable resellers, kiranas, other retail store owners,
offices and
institutions. The store offers an assortment of approximately 6,000 items, including food and
non-food
items, which are available at competitive wholesale prices,
allowing retailers and business owners to lower their cost of
operations.
More than 90 percent of these goods and services are being
sourced locally; thereby helping keep costs to a minimum, adding
to the growth of the local economy and creating job opportunities,
with the cash and carry store directly employing more than 200
local people.
 Wide Range of Quality Merchandise
A typical wholesale cash-and carry facility will stand between
50,000 and 100,000 square feet and sell a wide range of fruits
and vegetables, groceries and staples, stationery, footwear,
clothing, consumer durables, and other general merchandise
items.
 Efficient Supply Chain to Help Minimize Wastage and
Maximize Value for all Key Stakeholders
The joint venture has also invested in establishing an efficient
back-end supply chain management operation. The joint venture works with the existing supply
chain
infrastructure to help make it more efficient, thereby maximizing value for farmers and
manufacturers on the
one end and retailers, and in turn, consumers on the other. The supply chain operation supports
farmers
and small manufacturers who have limited infrastructure and distribution strength and help
minimize
wastage, particularly of fresh foods and vegetables. An efficient supply chain can play an
important role in
transforming farmers and small manufacturers into successful entrepreneurs.
 Technical Collaboration between Bharti Retail and Walmart
In addition to the joint venture, Bharti Retail (a wholly-owned subsidiary of Bharti) has entered
into a
franchise agreement with Walmart whereby Walmart provides certain technical support to
Bharti Retail. For
its front-end retail venture, Bharti Retail requires critical retail technology and technical know-
how. Within
the framework of permitted franchise arrangements, Bharti Retail has entered into a technical
collaboration
with Walmart whereby Walmart provides such critical technical support to Bharti Retail. Since
April 2008.

In addition to it Bharti Walmart will also provide more jobs,Quality assortment of

merchandise,low prices and world class stores with good customer service.
But what is the PROBLEM?
According to the FDI policies in india,not more than 51% Of the FDI is allowed for the single
brand retailers like Nike. Also, FDI is not allowed at all for Multi-Brand Retailers. The only
way a multi-brand retailer can invest in India is through franchisee and wholesale cash and
carry models. Which is why, Walmart has established its franchise and the retail shops will be
owned by Bharti Enterprises. However, such an approach is not the one which Wal-Mart
usually follows to enter in any other country but doe to the stringent laws in India,it had to
follow this way.

Bharti-Walmart plans to open a hundred stores every year but due to no FDI allowed in Multi-
brand retailing, it can open only eight to ten stores per year which is not in accordance with
Wal-Mart’s plans. Thus,it has urged to the Indian government to open the Retail Sector. Though
they aim at 100% FDI being allowed,Bharti-Walmart seeks only 49% as per now,considering
the political sensitivity over full scale opening of Foreign Direct Investment in Multi Brand
Retail. The government has taken a tentative step to open the sector, which employs 34 million
people, to global players with the Department of Industrial Policy and Promotion releasing a
discussion paper on the issue. It also favoured that FDI in retail should be permitted in the 200
cities with a population of more than 200,000 and not only in cities with about 40 lakh (4
million) population.

But the Idea of allowing FDI too the extent which is being demanded right now,is challeneged
with the thinking of some people that such a step might drive the local kirana shops out of
business which is the sole source of income for many people. However, it is a matter of fact that
every liberalization step which has been taken has proved to be good for the country and good
for the people.
CONCLUSION
The entry of foreign retail giants like Wal-Mart, Carrefour SA and Tesco Plc (Tesco) would
result in Indian retailers learning some of the best international practices in retailing. However,
analysts noted that the success of the joint venture would depend on how successful Wal-Mart
is in building a cost efficient supply chain and sourcing network so that the cost savings are
passed on the end consumer through its trademark "every day low price" strategy.

Thus,FDI should be allowed atleast upto 49% in the Multi-Brand Retail so as to encourage
more and more foreign players in India because in the end Our country is getting benefitted.