In the late 1940s, when Sam Walton was franchising Ben Franklin's General Store in Newport, Arkansas, he was preoccupied with a simple but important problem. Like any retailer, he was always on the lookout for great deals from suppliers. Walton knew he could do better by increasing profits with more sales. This understanding would become the cornerstone of Sam's business strategy when he founded Wal-Mart in 1962. He clearly knew.
The desire for low prices was a natural target for Walton. And although he was considered the richest man in the United States in the 1980s, he never gave a $5 tip to a local barber. Cost cutting was something of an obsession for him, and Sam sought to save not only on his personal expenses, but even on his managers. Sending employees on business trips, he exclusively purchased bus tickets for them, and always booked hotel rooms for them. Even a cup of coffee in the office cost 10 cents.
The effect of wages on the price of coffee
Walton realized that one of the main requirements for cost reduction was the absence of wages. As he wrote in his autobiography in 1992, retail business wages are one of the most important parts of the cost that must be fought to maintain the desired level of profit. That is why he has always fought the unions, and almost always successfully.
But the entrepreneur's ability to keep his staff happy helped him in 1985 amid concerns about trade deficit and job cuts in America. Sam launched his "Made in America" campaign to buy American-made products. In 1971, he introduced a plan that allowed employees to receive a percentage of their wages to buy subsidized Wal-Mart stock.
How should an employee behave with a client?
Equally important to Walton was the ability of employees to be able to sell goods. The workers were trained. He taught his managers that whenever a client approaches them, they should make eye contact, greet them, and ask if they can help.
He stimulated employees by talking about improving leadership qualities through communication and, accordingly, career growth. Each person had the opportunity to rise from the position of an ordinary salesman to a department manager, store or even regional manager.
He even introduced a symbolic oath. All employees at the time of hiring raised their right hand and said: "From this day forward, I solemnly promise and declare that every client who approaches me less than three meters, I will smile, make eye contact and greet him." As you know, the human factor is one of the main ones.
Competitive advantages of Wal-Mart
Of course, Wal-Mart's success lies in more than just charisma and frugality. The management technologies used in this company have helped it to stay ahead of its competitors. As early as the 1970s, Wal-Mart was using computers to establish constant communication and accounting between stores and warehouses. Just at that time, the active development of computer technology began, which was facilitated by Apple Corporation. and other companies.
Sales data allowed Wal-Mart to keep track of items and reduce miscalculations and inventory errors. Throughout his career, Walton will emphasize this kind of innovation, making Wal-Mart a consistent leader in terms of productivity and growth.
Difficulties surrounding Walton's death
When Walton died in 1992, the company had a hard time, as Wal-Mart's management had emphasized for years that their firm depended on a set of principles and habits more than anyone else. His death changed the perception of this company.
Wal-Mart began to change after Walton's death. It was the same as in the period when the company was just developing its business. Wal-Mart's new leaders took to heart one element of the founder's business philosophy, the importance of cutting costs, but they failed to deliver on it, ignoring the importance of decision making and front-line employees who, according to Sam, should feel as if the future of the company depends on them.
By this step, the leadership immediately placed itself at a disadvantage. However, the company has grown. Walton is a great man who has managed to achieve a lot. Read about other successful businessmen.
Using a new strategy
Between 1997 and 2001, the value of the company's shares increased by more than 500%. This no doubt helped to calm employees who were unhappy with the decline at the beginning of the decade. Between 1996 and 1999, sales increased by 78% and inventory increased by 24%.
At this stage in its development, the fall in popularity of weekly shopping in supermarkets forced Wal-Mart to turn to small stores, which became its new strategy.
In addition, the American company decided to try its hand at the international online grocery market, where its competitor will be Amazon, whose investments in this sector reach significant volumes.
Sam Walton- empire builder wal mart .
Mr. Sam was a truly unique person. Probably the most successful entrepreneur in the history of the world. His company, with sales in excess of $300 billion in 2005, continues its explosive growth today. With approximately 7,000 stores worldwide and creating 2 million jobs, Wal-Mart is a big force to be reckoned with. Interestingly, Sam Walton never set out to make Wal-Mart the biggest company on the planet; his goal was to be the best company!
Company wal mart Since its foundation, it has been following a strategy of low prices. Strategies through which it can offer products cheaper than other competitors.
On the one hand, this is, of course, a huge plus for buyers. But on the other hand, this entails such consequences as low salaries of employees, the ruin of Wal-Mart's smaller competitors (including local players), through which many people lose their jobs. Finally, Wal-Mart encourages the degrading of certain products in this perpetual race for low prices.
At the same time, the quality of not only goods that are sold in wal mart, but also those who challenged the company by abandoning it. They still have to make adjustments to the manufacturing process because Wal-Mart's low prices don't let them breathe freely. wal mart dictates his conditions for suppliers. Even as big as Procter & Gamble. Everyone does not like it, but there is no choice. It all started with a smile...
Founder of Wal-Mart Sam Walton I believed all my life that success can only be achieved thanks to perseverance, continuous improvement and a friendly attitude towards customers and partners(= employees of the company). America remembers her hero with a constant smile on his face, greets customers in such a way that he talks to employees. Walton had a big goal, and he walked towards it, guided by his values.
Youth
The future "king of trade" was born in the small town of Kingfisher, Oklahoma, in 1918. Little is known about his childhood, and he himself was not disposed to memories of him. His parents often quarreled and generally did not get along well with each other. Therefore, Sam often had to gain life wisdom in street universities. He disappeared either at the stadium or in the company of scouts. And since childhood, he learned two lessons well: you can achieve something only by perseverance, and a smile helps in this.
Sam started working at the age of 7 as a delivery boy for the morning papers. In addition, the future founder of Wal-Mart was actively involved in sports - basketball and American football. Subsequently, he will remember that it was football that taught him how to play as a real team. It was there that he realized how to compensate for his disadvantages at the expense of partners.
After high school, Sam Walton went to the University of Missouri, from which he graduated in 1940. His specialty was economics. After all, already at that time he showed great interest in retail. At the same time, he worked as a manager in small company. All this was a necessary experience for him. At 42, Walton is drafted into the army. Certainly not for war. Sam was diagnosed with heart problems, through which he was sent to serve on one of gunpowder factories DuPont. The service turned out to be successful, because it was there that Sam met a girl named Helen Robson, with whom he would live the rest of his life.
Returning to his native land, and feeling like a hero, Sam decided to put pressure on his father-in-law in order to take a loan from him. The father-in-law could not resist, and the start of his own business was laid. Sam Walton received a $20,000 loan. Borrowing another 5,000 from relatives, Sam and Helen opened a store with the money in Newport, Arkansas, with a proud sign of "Ben Franklin" - a well-known trademark (under a franchise agreement).
Walton's shop was ridiculously small, even for Newport with its 4,000 inhabitants. The only big shop in town belonged to Mr. Sterling. It seemed futile to compete with him. But it only seemed. Sam knew for sure: perseverance and a charming smile can make a big difference.
He personally met each visitor on the doorstep and showed such cordiality, as if he saw a long-awaited, dear and close person. He communicated with him as if he had opened his own shop exclusively for him. He spent hours talking to each client about everything in the world. He tirelessly talked about his son Robson and family affairs.
First successes and failures
And the ice has broken! Less than a year later, the gloomy Sterling was forced to give way to Sam Walton buyers, and there the palm in all financial reports.
Success inspired. To borrow money again, Sam expanded the trade: he bought a tray with ice cream. Now he felt a real business excitement. That there were long lines of children for ice cream gave him great pleasure. Maybe even more than the queue at the checkout of the store.
Five years later, Walton's small shop has become the most profitable outlet of the Ben Franklin chain. And the owner of this trademark began to suffer from envy. He decided that it was not the seller's attempts at all, but the brand. When the next term for the renewal of the contract for the lease of Sam's retail space approached, he was refused.
Birth of Wal-Mart
In this city, Sam opens his first store called "Five & Ten Cents". It was then that he turned his attention to a strategy of low prices. To do this, Walton tried in every possible way to avoid intermediaries, buying goods from the manufacturers themselves. In addition, he cut prices, making less profit than competitors. Sam Walton thought it would pay off in the long run. He was right.
For 10 years was 
o Opened 10 Five & Ten Cents stores. However, some of them are outside of Arkansas - in the state of Missouri. During these 10 years, Walton devoted himself not only to his family, but also to the study of trade. He wanted to combine small, family-run stores run by their own owners with huge supermarkets located in major cities. It was clear that he needed atmosphere from the first, and scale from the second. At the same time, Walton not only read a lot, most of all he liked to visit shops and supermarkets, and note in his notebook interesting ideas who kept getting in his way.
It was then that the future strategy of Wal-Mart was formed. The whole point was to open a large supermarket in major city East was simply impossible. dear earth, work force, competition with large and rich companies - all these were the factors that small provincials could not pull. Walton thought, why not start by opening large supermarkets in small towns on the outskirts. The big players of that time did not look there. Rent was much cheaper, and labor was not as expensive as in the center of a big city.
In 1962, the first Wal-Mart store was opened, which was then called Waltons Five & Dime. The store was located on the outskirts of the city of Rogers, and immediately attracted the attention of local residents. They all noted that it was a really big supermarket, like in big cities. But besides that, it differed from them with low prices and a friendly atmosphere of a small family shop. Finally, it is worth noting that the Walton family hired local residents in such stores, which further set them up for the company. Subsequently, it turned out that several generations of which family worked all their lives at Wal-Mart. Hence the belief that Wal-Mart creates many new jobs. It used to be so, but not now.
After 5 years, in 1967, he already had 24 stores, and sales reached $ 12 million. Sam remains true to his chosen strategy, and it does not fail him. He himself travels to buy goods, and is not afraid to take risks and lose, because he is sure that he will succeed.
Sam always told his employees, “There is one boss, the customer. He can remove anyone in the company, from the director to the loader, by simply spending the money elsewhere.”
Later, in memoirs Sam Walton formulated ten universal commandments of success .
Be committed to business.
Share profits with partners (as he called the store staff).
Motivate partners.
Discuss problems with partners.
Appreciate what partners do.
Celebrate success.
Listen to each partner.
Anticipates customer expectations.
Control your expenses.
Swim over the course.
In general, some of them are quite vague. Although for the author they are clear and not only verified, but also gained through rich practice.
Note that half of these commandments apply to partners. By them, Sam understood his store employees. He tried to communicate with them as often as possible and demanded the same from the members of the board of directors of the company.
« Most best ideas came to us from clerks and warehouse workers (among them - free parking at the store and permission to take out carts with goods directly to the car). If you take care of store employees, then they, in turn, will take care of customers in the same way.", - he said ... All his life, Walton remained friendly with everyone, and especially with junior staff.
Good deeds
Walton's benevolence towards people was not ostentatious, but sincere. It is characteristic that he never advertised his charity. Having lived all my life in small provincial towns he knew their problems well. Building a new store, he forced his employees to find out the addresses of local charitable foundations. In order to make contributions later.
It became the rule that everyone opened a store, set up scholarships for local college students, and held occasional charity sales. Money was donated to zoos, libraries, hospitals, theaters, churches, fire departments. They did not ignore the mayors of small towns. He created the American Hometown Leadership Award, which honors those provincial councilors who carry out long-term projects in their homelands.
In 1992, Walton published his autobiography Made in America: My Story (Made in America: My Story). It quickly became a bestseller and caused such a resonance that his services to American society could no longer be ignored. And in March 1992, US President George W. Bush (senior) presented Sam Walton with the Medal of Freedom. In the same year, Sam Walton died.
Until the end of his days, he remained himself. "Star disease" did not touch him. The billionaire treated fame indifferently. He still drove around his stores in a pickup truck, ignoring the luxury limousines. And he preferred the company of his beloved dogs to the companies of bankers and oligarchs.
Wal-Mart today
Sam Walton's business is alive and well. Today, this "empire" has more than 4 thousand stores scattered around the world, with a daily assortment of seventy thousand products. It is the world's largest retail chain operator, retailing toys, electronics, pharmaceuticals, footwear, textiles and more.
Total sales exceed $200 billion a year. Wal-Mart stores serve more than 100 million shoppers a week. Today, according to the Financial Times, it is the most respected company in the world, symbolized by a wide smile of a cheerful person.
The principles that guided the creator of the trading empire are not outdated. They cannot become obsolete, because they are based on the “human factor”. And not only trade, but also any business will flourish if it is focused, first of all, on a person, on his needs. Seemingly banal truths. But it was they who helped not only Walton, but also many others to become big businessmen.
If you visit today from Wal-Mart stores in America, any salesman or packer will kindly tell you about the Law of 10 Steps. This is a list of the above rules, crystallized by "Uncle Sam" half a century ago. But they are relevant today, and therefore it is like an oath for a recruit.
Appreciate the smile
A prospective "partner" salesperson, upon entering a job at any Wal-Mart store, solemnly vows that whenever a customer is within 10 steps of him, smile at him and ask if he needs help. “The bigger Wal-Mart department stores get, the more we need to avoid megalomania while maintaining the small-store feel,” said Sam Watson. And it became an axiom.
And today, eleven years after his death, the progressive inertia of the ideas of the great merchant keeps the family income in the top ten. 
billionaires of the world. They say that his children, who are well over fifty, did nothing special for the prosperity of the family business. In his old age, he enjoys gardening and equestrian sports. Almost nothing is written about the sons of the Walton family.
Even Forbes magazine, which accompanies a short biography of each person in the rating, allowed itself to write the same thing in the accompanying article about Helen, Alice, Jimmy and Johnny Walton: about the merits of their father, to whom they owe this money. And the ubiquitous journalists are haunted by the thought: how many years will it take for children to have nothing left of Sam Walton's fortune.
Perhaps they are slandering Sam's descendants in vain. If they continue to cherish the principles bequeathed by the founding father, then the envious will never wait for the impoverishment of the Waltons. So far, they are all among the ten richest people on the planet. So, probably, his son Jim Walton takes the sixth position with his $ 20.8 billion, his other son John - the seventh ($ 20.7 billion), the daughter Alice - the eighth ($ 20500000000). And Helen Walton, widow of the late founder of the Walton empire, holds 9th place with a net worth of $20.4 billion. The third son, Robson, was less fortunate, in tenth place ($18.5 billion).
And now count - how many in the family as a whole. Over $100 billion! Where is Bill Gates. And therefore - appreciate a person, appreciate a smile, love your client the way Sam Watson loved him and you will see that your business will go uphill!
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Story
Founded July 2, 1962 in Rogers, Arkansas by Sam Moore Walton. He acquired his first store in 1945 as a franchise from the Ben Franklin chain, by the end of the 1950s he and his brother James Lawrence Walton owned 9 stores of this chain. He proposed to the network owners the idea of opening large shopping centers in small towns with prices close to wholesale. Having been refused, in 1962 he founded his own network, calling it Wal-Mart Discount City. By the end of the 1960s, 18 Wal-Mart malls were open, in October 1969, Wal-Mart Stores, Inc. was registered, went public in 1970, and was listed on the New York Stock Exchange in 1972. In the early 1970s, the company began building its own warehouses, which, combined with low advertising costs, kept prices lower than competitors. In 1977, 16 Mohr-Value stores were bought, and the following year, the business was expanded with the purchase of the Hutchenson Shoe Company chain of shoe stores and the establishment of pharmaceuticals, service stations and jewelry. By 1979, the company had 276 malls in 11 states and had a turnover of $1.25 billion.
In 1983, the first three Sam’s Club wholesale shopping centers were opened, by 1991 their number had reached 148. In 1987, the company opened the first shopping center format Hypermart USA, which in addition to the supermarket also included restaurants, banks, children's playgrounds etc., but this format turned out to be ineffective and in the 1990s the company switched to the smaller Wal-Mart Supercenters format (with an area of about 10,000 m²). By 1988, when David Glass replaced the founder as president, the company had a presence in 24 states, 1,182 malls, and 90 clubs. wholesale trade. At the same time, the company has been criticized for tough supplier relationships, forcing out smaller competitors, a high proportion imported goods (25-30%). In 1990, Wal-Mart became the largest chain retail in the United States and continued to expand rapidly. In 1990, the Texas company Western Merchandise, Inc., which supplied books, music and video products, and McLane Company, Inc. were bought. In 1991, The Wholesale Club, Inc., a chain of wholesale clubs, was acquired and merged with Sam's Club. Also in 1991, the joint venture with Mexico's largest retail chain Cifra, S.A. de C.V. With the death of Sam Walton, his eldest son, Robson Walton, took over as chairman of the board. In 1993, an NBC report accused Wal-Mart of using low-wage child labor in Bangladesh to manufacture goods labeled as made in the United States. By the mid-1990s, the company had reached its limits of growth in the domestic market and began expanding overseas. In 1994, Canada bought 122 Woolco stores from the Woolworth Corporation for $335 million. In the following years, joint ventures were established in Argentina, Brazil and China; in 1997, a controlling stake in Mexican partner Cifra was bought for $1.2 billion. The development of Europe began with Germany, where in December 1997, the Wertkauf chain, which consisted of 21 hypermarkets, was bought for $ 880 million. A year later, another chain was bought from SPAR Handels AG, Interspar, which consisted of 74 hypermarkets. In 1999, ASDA Group plc was bought in the UK for $10.8 billion, which operated 229 shopping centers and had a turnover of $13.2 billion. In the late 1990s, the presence in Asia was also expanding, with an increase in the number of shopping centers in China and a not particularly successful entry into the markets of Korea and Indonesia. By 1998, overseas operations accounted for 6.4% of turnover ($7.5 billion), at which time (since 1997) Wal-Mart Stores was among the 30 companies that make up the Dow Jones Industrial Average. In the US market, the company began to develop the format of a minimarket (English Neighborhood Market), the sales area in which does not exceed 4000 m².
Typical Wal-Mart mall in outback USA
In 2000, Lee Scott was appointed president of the company, under whose leadership Wal-Mart Stores continued to grow. In 2002, a 35 percent stake in the Japanese company Seiyu, Ltd. was purchased. In 2003, the company's turnover reached $244.52 billion and Wal-Mart Stores, Inc. became the largest company in the world, as well as the largest non-governmental employer. Wal-Mart accounted for 10% of US imports from China, and the company's focus on low prices played a significant role in low US inflation. However, the status of the largest company also attracted a fair amount of criticism as to how such success was achieved. In particular, questions arose regarding employee relations: employee turnover among hourly workers was 44% per year, the average salary of ordinary employees was below the federal living wage, employees were forced to work overtime, there was discrimination based on sex, in connection with which the company was filed against many both collective and individual lawsuits. Wal-Mart has also been accused of violating U.S. anti-corruption laws while expanding into Mexico, Brazil, and Asia. By 2005, Wal-Mart's imports from China reached 1% of that country's GDP.
In 2006, the South Korean and German Wal-Mart projects were closed. There were 11 major companies operating in the South Korean market retail stores. Wal-Mart tried for several years to overcome the break-even threshold in the market, but the network administration was forced to admit defeat and sell outlets to a competitor. In Germany, the Interspar and Wertkauf networks lost $100 million annually. On July 27, 2006, an official announcement appeared about the sale of Wal-Mart 85 stores, which employed more than 11 thousand people, the total turnover was 2 billion euros per year. The buyer was Metro Group.
In 2011, a 51% stake in the South African company Massmart Holdings Ltd, which owned a supermarket chain in South Africa, as well as in several other African countries, was bought for $ 4 billion.
In 2016, California was fined $1 million for selling plastic bags as biodegradable, even though tests showed they were not 100% biodegradable in soil.
On August 8, 2016, Walmart announced it had acquired Jet.com, one of the fastest growing online marketplace companies, for $3 billion, and founder and CEO Mark Lohr (English)Russian and executives at Jet.com will join the Walmart team and lead the retailer's online sales for several years.
On May 9, 2018, Walmart announced it had acquired a 77% stake in Indian e-commerce market leader Flipkart for $16 billion. It was the largest acquisition in Walmart's history and the largest transaction in e-commerce history. It is also worth noting that investors reacted negatively to Walmart's message about the deal with Flipkart, skeptical about the company's prospects in the Indian market. Walmart shares fell 3.1% after the deal.
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Owners and management
In total, at the end of March 2017, the company had 236,000 shareholders. The company's largest shareholders are the heirs of founder Sam Walton through Walton Enterprises LLC (43%) and Walton Family Holdings Trust (5.3%).
- Greg Penner Greg Penner), genus. December 18, 1969 in Atherton (California) - Chairman of the Board since 2015, Member of the Board of Directors since 2008. Brother-in-law of Robson Walton S. Robson Walton), after whose resignation he took up this post. Education: Georgetown University and Stanford Graduate School of Business.
- Douglas McMillon (ur. Doug McMillon), genus. October 17, 1966 in Memphis (Tennessee) - President and CEO since 2014, from 2009 to 2014 he was vice president and headed the international division of the company, from 2005 to 2009 he headed the Sam's Club division; with the company since 1984. Graduated from the University of Arkansas and the University of Tulsa.
Activity
Walmart is a leader in the implementation of technologies related to the use of RFID tags in commerce.
Wal-mart in the USA
Wal-Mart Stores Inc. consists of three main divisions:
- USA ( Walmart U.S.) - retail and Internet sales, as well as related financial services such as money transfers, check cashing, prepaid cards; includes 3522 supermarkets, 415 discount centers and 735 convenience stores; most widely represented in the states of Texas (501), Florida (326), California (281), North Carolina (194), Georgia (192), Illinois (162), Ohio (145), Tennessee (139), Pennsylvania (138) , Virginia (136), Missouri (136), Oklahoma (123), Louisiana (122), Indiana (115), South Carolina (108), New York (100); turnover at the end of the financial year ended January 31, 2017 amounted to $308 billion, assets amounted to $104 billion.
International Presence of Wal-Mart
In the Forbes Global 2000 list of the largest public companies in the world for 2017, the company took 17th place, including 1st in terms of turnover, 19th in net profit, 154th in assets and 22nd in market cap; also ranked 9th largest companies USA and 22nd in the list of the most expensive brands in the world.
Performance indicators
| Year | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| turnover | 112,0 | 129,2 | 153,3 | 178,0 | 201,2 | 226,5 | 252,8 | 281,5 | 308,9 | 345,0 | 374,5 | 404,3 | 408,1 | 421,8 | 447,0 | 468,7 | 476,3 | 485,7 | 482,1 | 485,9 |
| Net profit | 3,504 | 4,397 | 5,324 | 6,235 | 6,592 | 7,955 | 9,054 | 10,27 | 11,23 | 11,28 | 12,73 | 13,24 | 14,45 | 15,36 | 15,77 | 16,96 | 15,92 | 16,18 | 14,69 | 13,64 |
| Assets | 44,22 | 47,07 | 67,29 | 74,32 | 79,30 | 90,23 | 102,5 | 117,1 | 136,2 | 151,6 | 163,5 | 163,1 | 170,4 | 180,8 | 193,4 | 202,9 | 204,5 | 203,5 | 199,6 | 198,8 |
| Equity | 18,52 | 21,14 | 25,88 | 31,41 | 35,19 | 39,46 | 43,62 | 49,40 | 53,17 | 61,57 | 64,51 | 64,97 | 70,47 | 68,54 | 71,32 | 76,34 | 76,26 | 81,39 | 80,55 | 77,80 |
| outlets, thousand | 3,373 | 3,493 | 3,884 | 4,073 | 4,294 | 4,563 | 4,799 | 5,182 | 6,037 | 6,779 | 7,262 | 7,909 | 8,459 | 8,970 | 10,13 | 10,77 | 10,94 | 11,45 | 11,53 | 11,69 |
Inside a Wal-Mart store
Wal-Mart Stores in Russia
Representatives of the company have repeatedly emphasized the importance of the Russian market for the company. In September 2008, Wal-Mart Stores registered a subsidiary entity in Russia - OOO VM eastern europe holdings, LLK. This company joined the Association of Retail Companies (AKORT), which is the main lobbyist for the interests of Russian retail chains.
After opening an office in Russia, Wal-Mart Stores tried to create a joint venture with X5 Retail Group based on the Karusel hypermarket chain, but the deal did not materialize. Then, in 2008, the American retailer participated in a tender for the acquisition of 89% of the St. Petersburg network of Lenta hypermarkets, but the deal also did not take place.
In 2010, Wal-Mart Stores was in talks to buy the Kopeika chain from companies owned by Nikolai Tsvetkov, head of FC Uralsib. However, after the acquisition of Kopeyka by the Russian retailer X5 Retail Group for 51.5 billion rubles in early December 2010, Wal-Mart decided to close the Russian representative office. According to the president of the international division of Wal-Mart Stores, Doug McMillon, the company remains interested in the Russian grocery market, but does not see partners for cooperation in the near future.
In September 2011, the appointment of Russian manager Lev Khasis, ex-head of X5 Retail Group, was announced as Senior Vice President of Wal-Mart Stores. The main areas of its work should be the integration of acquired networks, global synergy and innovation.
Criticism
A number of critics [ who?] The chain claims that Walmart is helping to squeeze out small retailers, including small family-owned stores, from the market. Also, a number of individuals and organizations provide evidence in favor of the fact that Walmart puts pressure on suppliers, "squeezing" lower purchase prices out of them, chain stores negatively affect the environment, and personnel rights are often violated.
Wal-Mart has gained notoriety for its tough opposition to union activity on its store fronts. [ ]
In 2001, Counting Pennies: How to (Not) Make Ends Meet in America by Barbara Ehrenreich was published. This book described Wal-Mart from the inside and contained numerous descriptions of violations of workers' rights while working at the company.
Notes
- Annual Report for the Fiscal Year Ended January 31, 2017 on SEC Filing Form 10-K . Wal-Mart Stores, Inc. Retrieved May 20, 2017.
- Wal-Mart Stores Inc - Quote. Reuters. Retrieved May 20, 2017.
Walmart - what is it? The name of the company is increasingly appearing on the lips of people and on the Web. For 10 years now, it has been the largest supermarket chain in America. The management of this giant is constantly looking for new markets, and the brand is gradually being mastered in various countries.
The secret of success is very simple: the company adheres to a deliberately winning policy of low prices. This made it possible to get used to any city very quickly and forced competitors to reduce prices. Despite the tremendous decline in the cost of goods, profit indicators are constantly going up.
History of Walmart
Sam Walton, the founder of Walmart, the largest chain of stores in the United States, opened his first store immediately after serving in the army on September 1, 1942. He received funds from his father-in-law as a loan immediately after the wedding.
It was a small, franchised establishment in a town of 7,000, but it became so popular and profitable that the owner didn't renew Sam's franchise. He decided that he was just lucky to find a good place, which means that further business can be done without him.
The young American gained invaluable experience and moved with his family to an even smaller town and opened his own store, which was called "5 and 10 cents." Then there was the second, third, and after 5 years there were 24 of them, and the total family income was $12,000,000.
The founder of a young company decided to conquer small cities, because there was too much and serious competition in megacities, but, fortunately for him, small and remote settlements were unimportant to seasoned "sharks".
This strategy, combined with a policy of low prices, was so successful that by 1979 the number of stores with the name Wal-Mart reached 230, and the revenue was more than a billion. After another 11 years, the company became one of the largest, and in 1992 its founder received a medal from the President of the United States.
To date, the brand's cash flow exceeds $400 billion. For decades, the company has been guided by the Save Money principle. Live Better, which translates to "Save your money. Live better."
Walking around Sam Walton's supermarkets, you can see that at least a third of the presented products are produced by completely unfamiliar brands, but you can not find names known all over the world.
The fact is that the brand's popularity makes up the bulk of the price, which is contrary to the company's policy, because the cost of most goods tends to the manufacturer's price.
What does Walmart mean? For most of their customers, this is the place to get what you want at a price no one else has. The family atmosphere attracts people of all ages and they no longer want to go to other stores.
Range
Now the Walmart store has an extremely huge offer for any need. You can choose stylish clothes from famous brands and more budget options. New models of the season, trends of past years - almost everything that comes to mind is in the catalog.
Household appliances, computers, tablets and other gadgets. The products of such companies as Apple, Samsung, Asus lie next to unknown brands. The company offers everything for home and garden, beauty and health, cars and their repair.
Regardless of age or gender, everyone will find what they need and be satisfied. The range is constantly growing and replenished with new products and products from little-known companies.
Producing countries
In the Walmart (Canada) catalog, as in others, you can find special marks “Made in USA”, which mean that the product was produced directly in America, and not in any other country, and assembled in the United States. There are goods from various countries, but the largest partner and supplier, of course, is China.
Due to the fact that main principle companies - low prices, products of the Celestial Empire are the most suitable for fruitful cooperation. If there are any doubts about the quality of the proposed product, there is always the opportunity to read the reviews left by real customers.
Discounts and promotions
Walmart - what is it? Literally translated, this is a territory where, despite very low prices and already profitable offers, the administration of supermarkets and online stores constantly offers amazing promotions and discounts that can be random or tied to a specific event.
For example, "Black Friday" is known all over the world - a sale of grandiose proportions. Especially on this day, there are breathtaking offers that make buyers just go crazy and behave inappropriately.
The "product of the day" promotion is also very popular. For some product for the whole day, a very low price is set, so you can save a lot.
Payment
At Walmart Stores, you can pay for your purchases in any convenient way. The only difficulties that may arise during the payment process are related to shipping to another country. But even in this case, managers are always ready to help and provide advice.
The company's management is constantly adding new payment methods and improving existing ones. Therefore, buying goods in such a supermarket is not only profitable, but also convenient.
Delivery
Another service offered by Walmart. What it is? A large staff allows sorting, packaging and dispatch of the order to the customer extremely quickly and without any delay. The only negative is that they only do it in the United States. The good news is that if the purchase amount exceeds $50, then the delivery will not cost a penny.
Checkout
Walmart online store - what is it? A convenient and fast platform that allows you to place an order as simply as possible and in a short time. There is no need to go anywhere or take any action at all. Just a couple of clicks - and the goods will be sent to the specified address.
All you need is to have your own account. For this, it is enough to go through a very simple registration. In the window you will be asked to subscribe to the newsletter of offers, promotions and other company news. After that, the system will prompt you to enter the delivery address and payment details. It is important that when filling out the delivery address and the payer address match, this will avoid some difficulties in the future.
These fields are filled in once, then all purchases will be made in a couple of clicks, which can significantly save time. You don’t have to worry about the safety of the entered payment data, because the system is reliably protected from various kinds of threats.
Walmart in Russia
The company's management constantly makes statements about the importance of the Russian market and about the great prospects. In fact, several attempts were made to expand its network on the territory of the Russian Federation.
The first steps in this direction were taken in 2008. After the registration and opening of the Walmart office, Moscow became the first city in which a successful American brand appeared.
The very first attempt to create branded supermarkets on the basis of the existing network "Karusel" was not successful. The giant's management did not stop trying and in the same year tried to acquire other hypermarkets. But this deal did not take place.
In 2010, the last attempt was made to introduce Russian market through the purchase of the Kopeyka chain of stores, but then a large domestic retailer X5 Retail Group, which was the first to buy out all the property, got in the way.
At this, the management decided to suspend the expansion. If you believe the statements of Walmart representatives, then the American giant will definitely try to “conquer” the Russian market again and is only waiting for the right time.
I bring to your attention a brief description of Walmart - a store with a large assortment of goods and low prices. Walmart also sells merchandise online.
Wal-Mart Stores Inc. better known to customers as Walmart (Walmart) - American multinational corporation retail, which is a chain of large discount stores and warehouse stores.
According to the Fortune Global 500 (2013), the company is the second largest corporation in the world; also the largest employer - with more than 2 million employees; the world's largest seller. The company remains a family-owned business. The company is controlled by the Walton family, which owns over 50% of Walmart. This is one of the most valuable companies in the world.
The company was founded by Sam Walton in 1962. At first, its administration was based in Arkansas, but by the end of the 80s it had grown from a regional to a national giant. By 1988, Walmart was the most profitable retailer in the United States, and by 1989, the most profitable. Until the mid-1980s, being geographically limited to the south and part of the west of the country, by the beginning of the 90s, the company was present everywhere in the country - from one coast to another.
Now Walmart has 8,500 stores in 15 countries around the world. Stores are open under 55 different names. The company operates stores under the Walmart name in the United States (including the 50 states and Puerto Rico). In other countries, for example, Walmart de Mexico y Centraamerica (Mexico), Asda (England), Seiyu (Japan)... Walmart is successful in most countries (for example, Argentina, Brazil, Canada, England, China, South America) and unsuccessful in some - in Germany and South Korea. In 2009, Walmart accounted for 51% of the total $258 billion in grocery store sales.
The success of this corporation was laid at the very beginning of its creation by a successful choice of development strategy. When businessman and former J.C. Penney employee Sam Walton bought out part of Ben Franklin Stores in 1945, he focused his attention on selling high-demand goods at low prices. This increased the sales of the product. The buyer, on the other hand, was happy with the luck, the benefit of the purchase.
This idea, based on an understanding of what the customer wants and feels good, formed the basis for the development strategy of Sam Walton's chain of stores. And in 2005, Walmart had $312.4 billion in sales, with more than 6,000 locations worldwide, including 3,800 stores in the US and 2,800 in other countries. It had over 1.6 million employees. In 2005, the Walmart store chain was so widespread in the US that only very small and isolated towns were more than 60 miles (100 km) from the nearest store.
Who is the main buyer of such a successful chain of stores?
Mostly poor people. The average Walmart shopper earns less than the US national average. In 2006, Walmart analyzed the customer base (200 million) and identified them as 6 main groups. These groups are: African-Americans; wealthy; parents who raised children and now live separately; Hispanic; city dwellers; suburban residents. The stores of the network are oriented to meet the purchasing needs of these population groups.
According to how customers feel about store prices, they are divided into three main groups: 1. People who earn little, but are in pursuit of fashion brands. 2. Wealthy, but trying to buy goods cheaper. 3. People who like low prices and also can't afford to buy anything at higher prices.
Naturally, Walmart is crowding out (especially in small towns) small local shops. Professor Kenneth Stone (Iowa State University) writes that small towns lose more than half of their income within 10 years when Walmart opens nearby. True, some others believe that it is not Walmart that influences profits, but other factors.
Does such a successful corporation donate money to the social needs of the population?
Sam Walton was never a philanthropist. He believed that once he started making a lot of money, people would expect him to give that money away for nothing. However, as a successful businessman, he invested a lot of money in education, helping people achieve life success labor. Since the death of Sam Walton in 1992, Walmart and the Walmart Foundation have dramatically increased all donations.
So, the Walmart chain of stores serves a poor customer. It is known that if the buyer does not belong to the rich, then, of course, it is more difficult for him to get a good education, to join the values of culture, etc. This leaves an imprint on his lifestyle, the nature of communication with other people, the sphere of interests.
When you come to Walmart, you should be ready for it. You can't expect the product you've bought to be beautifully packaged in a branded paper bag tied with a ribbon (as, for example, in Coldwater Creek); they will take it out and serve it to you, standing face to face (as in Nordstrom), and not through the cashier table; will smile at you so sincerely that your mood will be good throughout the day (as in Talbots) ... In a Walmart store, things can be a little different. And the goods you bought will simply be pushed into a branded gray plastic bag, and in the fitting room they will count how many things you took for fitting, and at the exit they may (albeit only sometimes) ask you to show a receipt for the purchased goods ...
However, both the store staff and customers are friendly and willingly respond to requests for help. Naturally, no one will try to get out of line to the cashier, or pass between people who are standing in line (there are small lines at hours when people return from work and on weekends when groceries and other goods are purchased for the week).
If you bought a product and want to return it, no problem: they will gladly accept it back in a special department and will be as welcoming as when making a purchase. Despite the fact that the store's customers are mostly people who count every penny, they do not at all look annoyed, sullen or angry. On the contrary, in the store they have fun talking with children (there are always a lot of children here), discussing purchases, creating a kind of relaxed and, at the same time, businesslike atmosphere of Walmart.
Like many other stores, Walmart has special electric wheelchairs for the disabled or just old people. When they are free, you can see how young customers use them in the store (whether for fun or for shopping). Probably, buyers, for example, Wegmans, would never have done this.
Of course, there are times when some people find it unpleasant to be met by someone they know at Walmart. If earlier a person could afford to shop in a more expensive store, but suddenly his financial situation changed and he visits Walmart, this can be a test for him.
But if you need some kind of knick-knack or something rarely used and special that you were looking for in all the stores and did not find it, go to Walmart and there, most likely, you will find the right thing. It can be something for sewing or knitting, for the garden, for the kitchen, for organizing a children's party, for apartment renovation and design... Sometimes it seems that this store has everything. Naturally, what you're looking for at Walmart won't be of the same quality (and therefore value) as you might find in other high net worth stores. However, you can be glad that you saved money.
Walmart even has a department of fabrics and accessories, not at all large, but there is (there are no such departments in other American stores at all).
You should not think that absolutely everything in this store will be cheaper. In the store, goods are most often cheaper, but not all and not always. This is especially true for food products. Often the product is more High Quality for less you can buy in a good grocery store (especially if it is focused on the sale of so-called family packages). But cheap shoes, a trendy T-shirt, a fun summer dress for a child, cheap sweatpants, and more can be found at Walmart.
What brands can you buy at Walmart? These are the brands Samsung, Apple, LEI, Wrangler, Hanes, Faded Glory, etc. The store has a lot of children's goods, including toys. The store sells products for children from Disney, Hello Kitty, Fisher Price, Lego, Barbie, Sesame Street, etc. brands.
Walmart also has its own brands. These are, for example, Sam "s Choice (various types of food), Great Value (traditionally staple foods), Equate (some medicines, pregnancy tests, cosmetics, etc.), Mainstays (furniture, home decor items), OI ' Roy (dog food), Dr. Thunder (drinks), Special Kitty (cat food), Parent's Choice ( children food, diapers, etc.), White Stay ( women's clothing, shoes, jewelry), George (formal wear for men, women, children), etc.
Walmart has a lot of shoppers every day. You can always save money here.
Buy online at: Walmart.com
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