Wal-Mart Retail begins. Before opening Wal-Mart, Sam Walton, traveled the United States to study everything he could about discount retailing. Walton became convinced that American consumers wanted a new type of store. With this vision Walton and his wife Helen placed 95 percent of the capital for their first Wal-Mart store in Rogers, Arkansas. Within five years, the company expanded to 24 stores across Arkansas and reached $12. 6 million in sales; in 1968 it opened its first store outside of Arkansas in Sikeston, Missouri and, Claremore Oklahoma.
Wal-Mart specializes in the operation of merchandise stores. It began trading stock as a publicly held company on October 1, 1970. In 1972 stock was offered for the first time on the New York Stock Exchange. With that infusion of capital the company grew to 276 stores in 11 states by the end of the decade. In the 1980s, Wal-Mart continued to grow rapidly, and by its 25th anniversary in 1987 stores with sales of $15. 9 billion and 200,000 associates.
The company operates through three segments, namely the Wal-Mart store, Sam’s Club, and the International segment. Wal-Mart store segment includes supercenters, discount stores, and neighborhood markets in the United States, also walmart. com. Wal-Mart operates more than 1,000 discount store in 47 states in the United States, which offer a variety of value-priced general merchandise including; family apparel, automotive products, health and beauty aids, home furnishing, electronics, hardware, toys, food, all types of items consumers need on daily basis.
In addition to sporting goods lawn and garden items, pet supplies, jewelry and household ware. The discount stores average 107,000 square feet in size and employ an average of 225 associates. Neighborhood Markets offer a full-line supermarket and limited assortment of general merchandise, the company has over 100 neighborhood markets in about 15 states, offering a variety of products. Wal-Mart international: currently have a total 4,263 stores and 660,000 workers in 15 countries outside the United States.
Countries include Argentina, Brazil, Canada, UK, Mexico, and China. In the fiscal financial year 2010 Wal-Mart International sales were $100 billion or 24. 7% of total sales. Wal-Mart is one of the most successful retail in the world. During the beginning of the 21st century they have accomplished a total of 8,747 stores and club associations in 15 countries, and 2. 1 million associates, serving 176 million customers a year. Their history is a perfect example of how to manage growth without losing sight of your values.
For the concern of jobs, a study commissioned by Wal-Mart with consulting firm Global Insight, found that its store’s presence saves working families more than $2,500 per year, while creating more than 210,000 jobs in the United States. Wal-Mart future plans include the key component of international growth. International revenues surpassed $100 billion in 2010 nearly 25% of total revenue. For the fiscal year ending January 31, 2009, Wal-Mart reported a net income of $13. 6 billion on $404 billion of revenue (3. 4 profit margins).
The company expects 500,000 new jobs on the next five years, more aggressive price cuts are planned as was evidence by the retailer’s recent announcement that it would bring more transportation logistics in house to save money. Wal-Mart will continue to build large one-stop shopping supercenters, but also smaller stores aim to provide more convenient shopping settings. The most futuristic idea is to expand “mobile shopping” in order to meet changing consumer’s demands; particularly in foreign markets where sophisticated shoppers use smart use smart phones for many purposes.
In addition Wal-Mart is committed to reduce greenhouse gas emissions, a sustainable product index, and a $2 billion effort to address hunger in the United States. Under the major strength areas of Wal-Mart we have that Wal-Mart is a well known store worldwide and during our current time of economic uncertainty, consumers must rely on cheap products to maintain their standard of living. Second the company operates under a very advance information technology. Wal-Mart is able to manage its products around the whole world and enables their management staff to take quick effective decisions.
Towards his stock valuation, historical prices determine that Wal-Mart’s stock is a relative stable investment; the stock is built for long term investments. The economic downturn, which started in 2000, continued throughout 2001 and it resulted in one of the most unpleasant years for US retailers. However, in 2001, traditional retailers found themselves at the advantage of becoming dominant online retailers. But high unemployment rate (about 400,000 lost jobs in 2001) pushed down potential sales as consumer spending was severely affected.