NAVIGATING

CHANGING RETAIL
LANDSCAPE

Group 6
Sugandha Ghadi
Rishi Satapathy
Dhruv
ABOUT
• Walmart is well known as a retail
innovator and it has become successful
remarkably in the economy.

• The business organization got involved

in social issues hence attracted a lot of
criticism.

• The case analyses Walmart's growth

through different issues and challenges
from 1968 to now becoming a major
retail giant.
CASE SUMMARY
 This case analysis is about the company
“Walmart,” a leading retail store in the
United States of America and other parts of
the world.
 The first retail store was started in the year
1962 in Rogers, Arkansas, by Sam Walton.
 The company’s mission is to offer the
customer a wide range of products at the
lowest price.
 Walmart is one of the first retailers who
offered Self-service shopping in the US.
 They were not offering any promotional
discounts like weekend discount sales, but
they followed “everyday low price.”
Walmart’s operation is divided into three
business units.
CONTINUED…
 All the activity in the US comes under Walmart US.
 All operation apart from the US comes under Walmart
International and chain of warehouse comes under
Sam’s Club.
 Walmart’s operation in the US is further divided into
various names based on the service provided in the
stores and the store size.
 The superstore is the biggest one in space and offered
groceries, bakery, fresh products, dairy products,
electronic items, toys, apparel, and home furniture.
 The discount stores which are smaller in size
compared to superstore and they offered groceries,
electronic items, toys in limited counts.

4
CONTINUED…
 The Neighbourhood store offered items like fresh
products, meat and dairy, health, and household
items.
 Their past strategy was to focus on physical large
retail stores, but now they wanted to invest in the
online store “Walmart.com” and also focus on
their retail store with different sizes based on
customer needs.
 Their main goal is to reduce their cost by various
means like buying in bulk, fuel efficiency, and
provide products at a low price to customers.
 The market segment of Walmart is the retail store
chain and e-commerce.
WALMART JOURNEY

1962-1971: Growth in Rural Areas

1962- First store opened in Rogers, Ark
1967- Open 24 stores, with $ 12.7 million in sales
1970- Walmart became publicly traded
1971 - First distribution center and home office opened

1972-1990: National Expansion

1982 -The Walmart foundation day
1983 - The First Sam Club opened
1988 - The First Supercenter Opened
David Glass Became CEO

Sam Walton David

 CONTINUED…

1991-2003: Grow of the Grocery Business and

internationalization

1992 - Sam Walton died at age 74

1994 - Expanded into Canada with the
purchase of 122 woolco store
1996 - Opened store in China
1998 - Neighborhood market was
introduce
2000 - H. Lee Scott became CEO
- Walmart.com was founded
2002 - Walmart topped the Fortune 500
- ranking as America's largest company
- Entered the Japanese Market

H. Lee
CONTINUED..

2004-2017: A new value chain and building an

online channel

2005 - Made commitment to environmental

sustainability
2007 - Launched Walmart.com site
2009- Michel Duke became CEO
2010 - Bharti Walmart joint venture opened in
India
2014- Doug McMillon became CEO
2016 - Launched Walmart Pay
2017 - Launched Store No 8 with focus of
Innovation and the future of retail

Michel Duke Doug McMillon

SWOT ANALYSIS
Weaknesses
• United Food commercial criticize
Walmart for not employing union
Strengths workers
• Low cost goods • Criticism from Unions about low
• Encourage employees to wages and employment practice
suggest new ideas • 2%-8% people stopped purchasing
• 100% renewable Energy by from Walmart due to “negative
2025 press”.
• Wider reach • Walmart closed 109 stores worldwide
• Innovative ideas due to low footfalls
• Grocery business not performing well
SWOT
ANALYSIS
Opportunities Threats
• Penetration in large markets • Increasing competition
like India • Amazon an ecommerce giant
• Entering into the ecommerce entering into physical retail
space • Preference of customers
• Good tie ups with brands like changing from offline to
P&G online
 PORTER’S FIVE FORCES
Threats of New entrants-
• Amazon entering into the physical retail space after acquiring whole foods
stores for 13.7 billion dollars
Threats of Substitute-
• The buying patterns are changing from offline to online
• Due to competitive pricing by competitors the products are easily substitutable
Bargaining power of buyer-
• As buyers have options now they compare the prices of products online and
offline and then buy the product
Bargaining power of seller-
• Walmart is known to take products from suppliers at lowest price possible but
with the emerging competition suppliers have options to change whom to
supply
Competition in the market-
• Both online and offline retail space has become highly competitive with
players like Dollar general, Costco, Amazon, Target
FINANCIAL ANALYSIS
RECOMMENDATIONS

• Expansion in ecommerce space

• Expansion into untouched market
• Having a subsidiary brand for luxury
products with premium pricing
• Restoring and expanding its grocery
business
CONCLUSION
 It has institutionalised its practises and culture to
conform to market shifts and consumer preferences,
which has ultimately made it possible for it to maintain
its market share.

 Businesses should concentrate on developing brand

loyalty, awareness, and equity in rural areas in order to
capitalise on their substantial market share and brand
identity in urban markets.

 This can be done by developing a specific brand

allocation strategy through trade marketing techniques
that clearly distinguish between Walmart Navigating A
Changing Retail Landscape products and those of
competitors.
THANK YOU