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THE STORY OF WAL-MART
Many trace discount retailing birth to 1962, the first year of operation for Kmart, Target and Wal-Mart. But by that time, Sam Walton's tiny chain of variety stores in Arkansas and Kansas was already facing competition from regional discount chains. Sam traveled the country to study this radical, new retailing concept and was convinced it was the wave of the future. He and his wife, Helen, put up 95 percent of the money for the first Wal-Mart store in Rogers, Arkansas, borrowing heavily on Sam's vision that the American consumer was shifting to a different type of general store. Today, Sam's gamble is a global company with more than 1.3 million associates worldwide and nearly 5,000 stores and wholesale clubs across 10 countries. The "most admired retailer" according to FORTUNE magazine has just completed one of the best years in its history: Wal- Mart generated more than $256 billion in global revenue, establishing a new record and adding more than $26 billion in sales. The company earned almost $9.1 billion in net income and grew earnings per share by more than 15 percent. In the 1980s, Wal-Mart became one of the most successful retailers in America. Sales grew to $26 billion by 1989, compared to $1 billion in 1980. Employment increased tenfold. At the end of the decade there were nearly 1,400 stores. Wal-Mart Stores, Inc. branched out into warehouse clubs with the first SAM'S Club in 1983. The first Super center, featuring a complete grocery department along with the 36 departments of general merchandise, opened in 1988. Wal-Mart had become a textbook example of managing rapid growth without losing sight of a company's basic values. In Wal-Mart's case, the basic value was, and is, customer service. Wal-Mart Stores, Inc. is the world's largest retailer, with $244.5 billion in sales in the fiscal year ending Jan. 31, 2003. The company employs more than 1.3 million associates worldwide through more than 3,200 facilities in the United States and more than 1,100 units in Mexico, Puerto Rico, Canada,

Argentina, Brazil, China, Korea, Germany and the United Kingdom. More than 100 million customers per week visit Wal-Mart stores worldwide. Guided by founder Sam Walton's passion for customer satisfaction and "Every Day Low Prices," Wal-Mart's four retail divisions -- Wal-Mart Super centers, Discount Stores, Neighborhood Markets and SAM'S CLUB warehouses -- offer a wide variety of quality merchandise to consumers around the world.


If

WAL-MART FOUNDER
judged by appearance Sam

Walton was a very ordinary man. He was raised in the Depression years, and served in the army during World War II. It was he, who from humble beginnings built the world's most admired retail organization.

Sam had a passion to compete and an appetite for adventure. He realized that Wal-Mart needed to do more than offer low prices to be successful - it also had to exceed customers' expectations for quality service. Sam devoted his life to expanding and improving upon this concept. He was also a good motivator of people, because he practiced what he preached. He remained guided by the old-fashioned principles of hard work, honesty, neighborliness and thrift. Even after his death in 1992, those principles continue to guide the company as it expands into other countries and cultures.

300 units in nine countries prove that Wal-Mart's Every Day Low Price promise is a message clearly understood in any language. Wal-mart as a Company is a visionary Company that learns from and cherishes its past. customers at more than 1. but does not live in it. Sam's vision from a few years ago has grown .a vision that now includes you as a new Associate.000 associates in the following countries: ARGENTINA BRAZIL CANADA CHINA GERMANY JAPAN KOREA MEXICO PUERTO RICO UK           .MART WORLD WIDE WAL-MART INTERNATIONAL OPERATIONS Wal-Mart became an international company in 1991 when a SAM'S CLUB opened near Mexico City. Here are a few brief highlights of the greatest Retail Company ever! These highlights are intended to show you how Mr. • WAL. Today.• WAL. The division currently operates stores and clubs employing more than 300. the Wal-Mart International Division was created to oversee growing opportunities worldwide.MART HISTORY Wal-Mart has achieved its present success because of a history of never being satisfied with the way things are. Just two years later.

They respond to customer needs. specialty apparel retail stores and supermarkets in Mexico. Wal-Mart has experienced success internationally because of its ability to transport the company's unique culture and effective retailing concepts to each new country. 10 SAM'S CLUB and 2 Todo Dia.  WAL-MART ARGENTINA Started its operations in August 1995 with the opening of a SAM'S CLUB in Avellaneda. By serving each hometown in its own unique way. merchandise preferences and local suppliers. The company employs over 4.  WAL-MART BRAZIL Began operations in May 1995 when a SAM'S CLUB opened in São Caetano do Sul. Wal-Mart International plans to open 120 to 130 units in existing markets. Entre Rios. Wal-Mart Brazil also employs around 7. This strategy has given the company excellent market penetration and positioned it for future development. Mendoza and Neuquen. The company sees its development throughout North America. Wal-Mart Brazil has opened 13 Wal-Mart Supercenters. Wal-Mart International has achieved global expansion through a combination of new store construction and acquisitions. Latin America. Wal-Mart International has realized significant growth with potential for much greater development worldwide.000 . This year. in the greater Buenos Aires area. WalMart operates 11 Supercenters and one distribution center in the provinces of Buenos Aires. Cordoba. metropolitan area of São Paulo. Santa Fe.DEVELOPMENT OPPORTUNITIES. The announced units include two restaurant formats.000 associates in Argentina. In the past seven years. Asia and Europe as a good beginning with many promising areas for further expansion. Associates get involved in the local communities and adapt to local cultures. Today.

Each discount store houses more than 70. Bompreco operates a number of different formats including Hiper Bompreco hypermarkets ranging in size between 4.000 and 12. with a sales area of up to 3. present in nine states across the region.500 square meters and offering 45.000 suppliers.200 square meters and offering around 10. a retail chain in northeastern Brazil with 118 units. Wal-Mart Brazil announced the acquisition of Bompreco. The company currently operates 231 discount department stores and 5 SAM'S CLUBS and employs more than 62. Today WalMart Brazil is present in four states .000 .associates and does business with approximately 5. Bompreco is the leading supermarket and hypermarket chain in Brazil's northeast region. Rio de Janeiro and Paraná.000 lines. as well as a small number of 'Hiper Magazine' stores.000 associates across Canada. Minas Gerais.000 lines and Bompreco supermarkets. Bompreco also operates mini-markets and Balaio discount stores. In March 2004.São Paulo. WAL-MART CANADA  Wal-mart entered in 1994 with the acquisition of 122 Woolco stores.

products and a wide range of specialty services. The first SAM'S CLUBS opened in October 2003. .

Wal-Mart acquired 21 Wertkauf hypermarkets in Germany.000 associates. Wal-Mart Germany employs more than 14. As a harbinger of China economic reform and the fastest growing coastal city in China. Wal-Mart now has 34 stores employing more than 18. Seven years later.  WAL-MART GERMANY In January 1998. WAL-MART CHINA Wal-Mart first entered China in August 1996 with the opening of its first Supercenter and SAM'S CLUB in Shenzhen. Later that same year.  WAL-MART JAPAN .000 associates across the country. the company acquired 74 units of the Interspar hypermarket chain. Wal-Mart has since invested in the remodeling of these stores and today operates 92 Supercenters in Germany. Shenzhen proved to be the best location for Wal-Mart investment.

Hwajung. was the company's first new construction project.  WAL-MART MEXICO . Buchon. Ilsan. Seiyu operates over 400 supermarkets in Japan and employs 30.  WAL-MART KOREA Wal-Mart entered Korea in July 1998 through its acquisition and conversion of four Makro stores. Daejeon. Masan.000 associates. Daegu(3). Today. Ulsan and Yongin. Seoul. which opened in July 1999. Inchon(2).8% stake in the company. Wal-Mart purchased a minority interest in The Seiyu. Wal-Mart holds a 37. a leading Japanese retailer. Ltd. Wal-Mart Korea employs more than 3.000 associates and operates 15 Supercenters located in Anyang. The Kangnam store in Seoul. Busan. Today.In 2002.

In 1991. a local supermarket chain with 32 stores. Wal-Mart acquired Supermercados Amigo. 9 SAM'S CLUBS and 3 Supercenters.  WAL-MART PUERTO RICO Wal-Mart started operations in Puerto Rico in June of 1992 with the opening of a Wal-Mart store in Fajardo. The company employs more than 100.6 billion. The company's ticker symbol changed from CIFRA to WALMEX. and Mexico became the first country in the International division.500 associates and does business with more than 300 local suppliers on the island. S. Wal-Mart employs approximately 12. Wal-Mart acquired a majority position in Cifra and in February 2000 the name changed to Wal-Mart de Mexico. Wal-Mart entered into a joint venture with Cifra with the opening of a SAM'S CLUB in Mexico City.000 associates across the country. Currently. Wal-Mart operates 640 units in 31 states with annual sales of US$10. Since then. WAL-MART UNITED KINGDOM  . the company has successfully opened 9 Wal-Mart stores. In 1997.A.V. de C. In 2002.

Today. The Wal-Mart name appeared on a UK store for the first time in 2000. the company operates 14 ASDA-WalMart Supercentres throughout the UK. • WAL-MART BUSINESS CATEGORIES There are four Business Categories of Wal-Mart: WAL-MART SUPER CENTER SAM'S CLUB WAL-MART STORES WAL-MART NEIGHBORHOOD MARKET Now there are two categories of Wal-Mart in China: Wal-Mart Super center & SAM'S CLUB. employing around 125. The company was formed in 1965 by a group of farmers from Yorkshire. and now has 251 ASDA stores and 21 depots across the UK.ASDA. became part of the Wal-Mart family on July 26.000 colleagues. 1999. Britain's best value food and clothing superstore. WAL-MART SUPER CENTER . when the first ASDA-Wal-Mart Super centre opened in Bristol. bringing a unique shopping experience to British customers with the best of both organizations' products on offer.

Wal-Mart stores with grocery departments offer the ultimate in convenience .grocery shopping and 36 departments of discount general merchandise under one roof. . Referred to as Supercenters.The growing demand for one-stop shopping led to WalMart's decision to build full-line grocery department into many of its new stores.

The first Wal-Mart Supercenter opened in Washington. delicatessen. SAM'S CLUB offers exceptional value on famous-brand merchandise at "member only" prices for both business and personal use. Supercenter customers find Wal-Mart's Every Day Low Prices on everything from produce to washing powder. Missouri. driving the continued growth of Wal-Mart and currently numbering over 1. the Wal-Mart Supercenter offers Every Day Low Prices on top-quality. Wal-Mart Supercenters are designed to save customers time and money. 1988.000 stores worldwide. while providing a unique shopping experience. 1988 in Washington. name-brand merchandise. Inc. on March 1. The first SAM'S CLUB was founded in 1983. . and also offer a unique shopping experience based on the Wal-Mart philosophy of "Every Day Low Prices". Through high volume sales. frozen food section. meat and dairy as well as fresh produce departments. One decade later. Wal-Mart designed the Supercenter concept to save customers time and money. The first Wal-Mart Supercenter opened on March 1. Missouri.The Wal-Mart Supercenter provides one-stop family shopping convenience. Through efficient operations and high-volume sales. SAM'S CLUB SAM'S CLUB is a low-cost members-only warehouse club named after the founder of Wal-Mart Stores. The store combines a full-line of groceries and general merchandise department under one roof. Additionally the grocery area offers a bakery. .Sam Walton. Acting like a purchasing agent for its members. Supercenters feature the traditional 36 general merchandise departments found in Wal-Mart Discount Stores. Wal-Mart Supercenters are a Consumer hit.

toys. We are a national discount retailer offering a wide variety of general merchandise. Vision Center and One-Hour Photo Processing for customer convenience. lawn & garden. electronics. While other major competitors typically run 50 to 100 advertised circulars per year. Wal-Mart stores operate on an "Every Day Low Price" philosophy and are able to maintain their low price structure through conscientious expense control. produce and baked goods. Wal-Mart stores offer pleasant and convenient shopping in 36 departments including family apparel. In addition to its brand-name. fabrics & crafts. In addition. Inc. and other food and non-food categories. Everything possible is done to make shopping at Wal-Mart a friendly experience. Wal-Mart produces only 12-13 major annual circulars. Tire & Lube Express. a characteristic unique to our chain. . SAM'S CLUB offers a variety of food items including fresh seafood. household needs. The cost savings associated with fewer circulars are passed on to the customer through lower shelf prices every day. low-cost merchandise mix. jewelry and shoes. Additional member benefits also include discounts at local restaurants. some Wal-Mart stores offer a Pharmacy Department. Wal-Mart Associates strive to provide exceptional customer service. snack bar or restaurant. garden center. health & beauty aids.SAM'S CLUB operates by selling high volumes of merchandise at very low profit margins which are passed along to members in the form of low. warehouse prices. and recreational facilities. Everything we do is to save you money! WAL-MART STORES Our Wal-Mart stores are the flagship retail division of Wal-Mart Stores.

Neighborhood Markets employ 80-100 associates and offer about 28. supplementing a strong food distribution network and providing added convenience while maintaining Wal-Mart's Every Day Low • WAL-MART SPECIALITY CATEGORIES WAL. accurate and dependable tire and lube service. Neighborhood Markets range from 42. fresh meat and dairy items. Currently. It operates in an extremely fast-paced. one-hour photo and traditional photo developing services. First opened in 1998. . In the last 10 years. meaning there are many career opportunities for both hourly and management candidates. pet supplies. Prices. they are located in markets with Wal-Mart Supercenters. stationery and paper goods. competitive and rapidly expanding environment.MART has five major specialty categories which are as follows:  WAL-MART TIRE AND LUBE EXPRESS TLE is one of the fastest growing divisions within Wal-Mart.000 to 55. wal-mart has more than 1. If you are interested in an hourly position with TLE. drive-through pharmacies. it has grown more than 300% .700 locations in more than 45 states. your career will begin at your local Wal-Mart store. and household chemicals. pharmaceuticals and general merchandise.Neighborhood Markets offer a convenient shopping experience for customers who need groceries.000 square feet and feature a wide variety of products. health and beauty aids. deli foods. including fresh produce.WAL-MART NEIGHBORHOOD MARKET Wal-Mart Neighborhood Markets -.000 items.and still growing! The Tire & Lube Express Division (TLE) prides itself on providing superior customer service and offers fast. Generally.

seeing into the future with you in mind. We have wide-ranging career paths that might be of interest to you. Eye exams are available by an Independent Doctor of Optometry. We've opened pharmacy clinics in medical facilities. Today. located next to or inside Wal-Mart Vision Centers and SAM'S CLUB Optical. Today. Our pharmacies are not just limited to Wal-Mart Stores now. We'll work tirelessly to continue meeting your needs by providing Superior Vision with Outstanding Values for your entire family. car rental and hotel discounts. We believe in giving our Pharmacists the opportunity to grow and develop in a multitude of ways during the course of their careers. more than 720.500 Pharmacists. proudly call Wal-Mart home and work hard to make our vision reality.  WAL-MART VACATIONS Wal-Mart Vacations offers "Always Low Prices" on cruises. The Wal-Mart Optical Department . in SAM'S Clubs and even provide a drive-through window at our new Neighborhood Market grocery stores.000 associates across the nation.  WAL-MART PHARMACY The Wal-Mart Pharmacy is a logical extension of the cherished company philosophy: customers deserve superior goods and services at fair and honest prices. WAL-MART OPTICAL The Wal-Mart Optical Department is one of the fastest growing areas in the company and provides customers with superior goods and services at low prices you can afford. they have many qualified Opticians and Professionals working in WalMart and in SAM'S CLUB Optical with a wide range of advancement opportunities across the country. They have always prided ourselves on 100 percent customer satisfaction. this is another important category of wal-mart specialty division. vacation packages. . including more than 6.

Sam established in 1962: 1. We are a group of dedicated. praise and constructive feedback. different colors and different beliefs. WAL-MART USED AND FIXTURE AUCTIONS Wal-Mart's used fixture program allows for the resale of fixtures for reuse in another location.it's a reality at Wal-Mart. “‘Our people make the difference' is not a meaningless slogan . All auctions are open to the public and held at that Wal-Mart location. trash compactors to front-end alignment lifts may be available at an auction. ordinary people who have teamed together to accomplish extraordinary things. (Retired) associates to raise questions and concerns in an open . but we do believe that every individual deserves to be treated with respect and dignity. Inc. When we cannot reuse our fixtures or equipment because of outdated or excess supply. • WAL-MART BELIEFS Sam Walton's 3 Basic Beliefs the company was built on. Everything from glass showcases. STRIVE FOR EXCELLENCE  RESPECT THE INDIVIDUAL Every associate's opinion is respected. RESPECT FOR THE INDIVIDUAL 2. Managers are considered "servant leaders" who help new associates realize their potential through training. three-door freezers. We have very different backgrounds. hardworking. An "open door" management philosophy encourages atmosphere. auctions are held to sell the remaining items. Senior Vice Chairman of Wal-Mart Stores. Sam Walton built Wal-Mart on the revolutionary philosophies of excellence in the workplace. We have always stayed true to the Three Basic Beliefs Mr. SERVICE TO OUR CUSTOMERS 3." Don Soderquist. customer service and always having the lowest prices.

" . New ideas and goals make us reach further than ever before. Inc. This allows us to provide the Customer Service expected from each individual customer that walks into our stores. We want our customers to trust in our pricing philosophy and to always be able to find the lowest prices with the best possible service. SERVICE TO OUR CUSTOMERS The customer is the boss. "Wal-Mart's culture has always stressed the importance of Customer Service. as well as discuss their daily goals." Tom Coughlin. store associates gather for the Wal-Mart or SAM'S CLUB cheer and review sales from the previous day. Vice Chairman. "Sam was never satisfied that prices were as low as they needed to be or that our product's quality was as high a they deserved . The "Ten-Foot Attitude" means that associates are to greet each person they see. Wal-Mart Stores. "The Sundown Rule" requires a continual sense of urgency. The "Satisfaction Guaranteed" refund and exchange policy allows customers to be fully confident of Wal-Mart and SAM'S Club’s merchandise and quality. Our Associate base across the country is as diverse as the communities in which we have Wal-Mart stores. We try to find new and innovative ways to push our boundaries and constantly improve.he believed in the concept of striving for excellence before it became a fashionable concept. At the start of each day.  STRIVE FOR EXCELLENCE Wal-Mart and SAM'S CLUB associates share an exceptional commitment to customer satisfaction. with questions asked in the morning answered before the end of the day. pleasant experience. We're nothing without our customers. Everything possible is done to make shopping at Wal-Mart and SAM'S CLUB a friendly.

This is just one example of our commitment to friendly customer service. or refund with a thank-you and a smile. and greet everyone who come within 3 meters. You are our livelihood. Repair.• WAL-MART CUSTOMER SERVICE RULE Following are some of the most important rule Wal-Mart follows to satisfy their customer and providing best service: 1. For example. 3. We recruit and hire people who like to smile. MEET YOU AND GREET YOU One way of meeting your needs and exceeding your expectations is practicing aggressive hospitality. Responding quickly to you shows that we care. if you ask our associates where a product is: • • Meet your needs by showing you where the department is. this means doing everything we can to please you. Our job is to make you feel like you are the most important part of our business by meeting your needs and exceeding your expectations. If at all possible.customers. exchange. look you in the eye. We won't always solve every problem or complete every task before sundown. 2. Exceed your expectations by taking you to the product. We call this the "3-Meter Rule". suppliers or other associates by sundown of the day they are received. we like to call you by name. . but by keeping you informed we demonstrate one of the foundations of our Company that we care. SATISFACTION GUARANTEED Simply stated. We encourage our associates to make you feel welcome when you visit our store. THE SUNDOWN RULE This rule says that all Associates should respond to calls from -.

We look forward to seeing you soon! • WAL-MART FACTSHEET INTERNATIONAL FAST FACT SHEET WAL-MART GLOBAL 5. greeting you with a smile. Be sure and let us know how we can improve. We are continuously working to improve our business to meet your needs. The People Greeter has many responsibilities. The People Greeter has the unique responsibility of meeting and welcoming you as you enter Wal-Mart facilities. and exceed your expectations. including the job of handing out shopping carts.428) Wal-Mart Supercenters(1. We appreciate the opportunity to serve you. If you have not been able to visit our stores. Thank You! Thank you for shopping our stores.586 total unites Wal-Mart Stores(1.553) SAM'S Clubs(538 clubs) Wal-Mart Neighborhood Markets(67 stores) . 4. please be our guest.085 total units UNITED STATES 3.The People Greeter program is one example of Wal-Mart's aggressive hospitality that started a trend. and letting you know we're glad you came to Wal-Mart.

Entered China in August 1996. United Kingdom.* Entered Japan in March 2002. **Wal-Mart owns a 37.* Entered United Kingdom in July 1999. Entered Germany in January 1998. a leading retailer with over 400 stores throughout Japan.. AR) Entered Mexico in November 1991. Mexico. China. Germany. COMPANY TRADE TERRITORY Wal-Mart serves more than 138 million customers weekly in 50 U. MO) First International unit opened in 1991 (Mexico City) First Neighborhood Market opened in 1998. .S.499 total units Mexico (623) Puerto Rico (53) Canada (236) Argentina (11) Brazil (144) China (38) South Korea (15) Germany (92) United Kingdom (267) DISTRIBUTION CENTERS HISTORY 103 locations First Wal-Mart opened in 1962 (Rogers.* Entered South Korea in July 1998. Entered Canada in November 1994. Entered Brazil in November 1995. Canada. (Bentonville. AR) First SAM'S Club opened in 1983 (Midwest City. OK) First Supercenter opened in 1988 (Washington. Entered Puerto Rico in August 1992. Brazil.8% interest in Seiyu.WAL-MART INTERNATIONAL 1. states and internationally in Puerto Rico.* Entered Argentina in November 1995. Argentina and South Korea.** *Entered these countries through acquisitions. Ltd.

Brazil.3 billion LATEST COUNTS OF WAL-MART To date.5 million worldwide In U. Germany. Mexico.586 NUMBER OF STORES NUMBER OF STORES 1.2 million FYE 1/31/04: $256.499 3. Korea. Wal-Mart has entered into 10 countries: US. UNITED STATES WAL-MART STORES WAL-MART SUPERCENTERS SAM'S CLUBS WAL-MART NEIGHBORHOOD MARKETS TOTAL WAL-MART INTERNATIONAL (ALL TYPES) MEXICO PUERTO RICO CANADA ARGENTINA BRAZIL CHINA KOREA GERMANY UNITED KINGDOM TOTAL 643 53 236 11 144 38 15 92 267 1. Argentina.553 538 67 . UK.more than 1. Puerto Rico.428 1. Canada and China.TOTAL ASSOCIATES SALES Total Company Associates .S– more than 1.

500.200.ASSOCIATES UNITED STATES WAL-MART INTERNATIONAL TOTAL DISTRIBUTION CENTERS NUMBER OF ASSOCIATES OVER 1.000 OVER 1.000 103 .000 OVER 300.