History of Wal-mart

SAM Walton’s SAM Walton’s WAL-MARTWAL-MART

By Manas Deshmukhand Pooja

Your Global Super Store

Wal-Mart is World’s Largest Wal-Mart is World’s Largest Retail CompanyRetail Company

Presentation IncludesPresentation Includes

IntroductionIntroduction Introduction Of Introduction Of SAM WALTONSAM WALTON A Take off Point of Wal-MartA Take off Point of Wal-Mart How did Wal-Mart Get there.How did Wal-Mart Get there. Itemization Management Itemization Management AchievementsAchievements ConclusionConclusion

IntroductionIntroduction Samuel Moore WaltonSamuel Moore Walton (March 29, 1918 – April  (March 29, 1918 – April

5, 1992) was an American businessman and 5, 1992) was an American businessman and entrepreneur born in Kingfisher, Oklahoma who entrepreneur born in Kingfisher, Oklahoma who founded  Wal-Mart. founded  Wal-Mart.

The company was founded byThe company was founded by Sam Walton Sam Walton in  in 1962 1962

Wal-Mart Stores, Inc. is the largest American Wal-Mart Stores, Inc. is the largest American Public corporation that has the largest chain Public corporation that has the largest chain of departmental stores in the world.of departmental stores in the world.

It is the world's largest public corporation by revenueIt is the world's largest public corporation by revenue..

▲ ▲ US$ 404.16 Billion (US$ 404.16 Billion (20092009) )

Introduction Of Introduction Of Sam Sam WaltonWalton

  During the During the Great DepressionGreat Depression, , Sam Walton milked the family Sam Walton milked the family cow, bottled the surplus, and cow, bottled the surplus, and drove it to customers. drove it to customers.

Upon graduating, he was voted Upon graduating, he was voted "Most Versatile Boy." "Most Versatile Boy."

Walton joined JC Penney's as a Walton joined JC Penney's as a management trainee in management trainee in Des Des Moines, IowaMoines, Iowa just three days  just three days after graduating from college. after graduating from college. This position earned him $75 a This position earned him $75 a month. month.

First StoresFirst Stores (A Take Off For (A Take Off For Wal-mart)Wal-mart)

Walton purchased a Walton purchased a Ben Ben FranklinFranklin variety store in  variety store in NewportNewport, , Arkansas. Arkansas. 

Walton was extremely successful in Walton was extremely successful in running the store in Newport, far running the store in Newport, far exceeding expectations. exceeding expectations.

Got separated from Ben Franklin. Got separated from Ben Franklin. On July 2, 1962, Walton opened the On July 2, 1962, Walton opened the

first Wal-Mart Discount City store first Wal-Mart Discount City store located at 719 Walnut Ave. located at 719 Walnut Ave. in Rogers, Arkansasin Rogers, Arkansas..

Died on 5Died on 5thth April 1992 (the biggest April 1992 (the biggest upset for Wal-Mart).upset for Wal-Mart).

How Did We Get Here?How Did We Get Here? Sam WaltonSam Walton, Wal-Mart’s founder worked his way , Wal-Mart’s founder worked his way

from the ground up in retail from the ground up in retail

Founded Wal-Mart in 1962 (K-Mart and Target also Founded Wal-Mart in 1962 (K-Mart and Target also founded the same year)founded the same year)

By 1969, Walton had established 18 Wal-Mart stores.By 1969, Walton had established 18 Wal-Mart stores.

1972 – Wal-Mart initial public offering – with this 1972 – Wal-Mart initial public offering – with this infusion of capital, expanded to 276 stores in 11 infusion of capital, expanded to 276 stores in 11 states by 1980states by 1980

1979 – Wal-Mart reaches $1B revenues – fastest 1979 – Wal-Mart reaches $1B revenues – fastest company to reach $1B revenues (17 years)company to reach $1B revenues (17 years)

1983 – First Sam’s Club1983 – First Sam’s Club

How Did We Get Here?How Did We Get Here? 1988 – first Wal-Mart Super center (including groceries)

Today – 7,800 stores, 14 countries, 2 million employees

Today wal-Mart has been voted first in most detailed companies of the world.

Retail Technology Retail Technology HistoryHistory

Sam Walton distrusted computers, Sam Walton distrusted computers, but was convinced to invest but was convinced to invest heavily in new inventory heavily in new inventory management systems that would management systems that would give Wal-Mart an edge for yearsgive Wal-Mart an edge for years

1977 – builds a company-wide 1977 – builds a company-wide computer network and deploys a computer network and deploys a system for ordering merchandise system for ordering merchandise from suppliersfrom suppliers

1983 – begins using bar codes at 1983 – begins using bar codes at checkoutcheckout

1984 - Began using hand-held 1984 - Began using hand-held terminals when reordering terminals when reordering merchandisemerchandise

Retail Technology Retail Technology HistoryHistory

1987 – Company completes the 1987 – Company completes the largest private satellite largest private satellite communications system in the communications system in the US US

1990 – a data warehouse 1990 – a data warehouse prototype is created to store prototype is created to store historical sales datahistorical sales data

1996 – begins using internet as 1996 – begins using internet as application platform; Wal-Mart application platform; Wal-Mart and Sam’s Club launch online and Sam’s Club launch online storesstores

2004 – announces it will deploy 2004 – announces it will deploy RFID technology for inventory as RFID technology for inventory as of January 2005of January 2005

RFID TechnologyRFID Technology(Radio Frequency Identification)(Radio Frequency Identification)

In efforts to implement new In efforts to implement new technologies to reduce costs technologies to reduce costs and increase the efficiency, in and increase the efficiency, in July 2003, Wal-Mart asked its July 2003, Wal-Mart asked its top 100 suppliers to be RFID top 100 suppliers to be RFID compliant by January, 2005.compliant by January, 2005.

Wal-Mart planned to replace Wal-Mart planned to replace bar-code technology with RFID bar-code technology with RFID technology.technology.

The company believed that this The company believed that this replacement would reduce its replacement would reduce its supply chain management costs supply chain management costs and enhance efficiency.and enhance efficiency.

Itemization ManagementItemization Management Wal-Mart invested heavily in IT and Wal-Mart invested heavily in IT and

communication systems to effectively track sales communication systems to effectively track sales and merchandise inventories in stores across the and merchandise inventories in stores across the country.country.

With the rapid expansion, it was essential to have With the rapid expansion, it was essential to have a good communication system.a good communication system.

Hence, Wal-Mart set up its own satellite Hence, Wal-Mart set up its own satellite communication system in 1983.communication system in 1983.

Itemization Itemization ManagementManagement……

Employees at the stores had Employees at the stores had the “Magic Wand,” a the “Magic Wand,” a hand-hand-held computerheld computer which was which was linked to in-store terminals linked to in-store terminals through a radio frequency through a radio frequency network.network.

These helped them to keep These helped them to keep track of the inventory in track of the inventory in stores, deliveries, and backup stores, deliveries, and backup merchandise in stock at the merchandise in stock at the distribution centers.distribution centers.

Sub-Divisions Of Wal-Sub-Divisions Of Wal-MartMart

Sam Walton started three different companies Sam Walton started three different companies 1.Wal-Mart Neighborhood.1.Wal-Mart Neighborhood. 2. Sam’s Club (chain of warehouse clubs).2. Sam’s Club (chain of warehouse clubs). 3. Wal-Mart Super center.3. Wal-Mart Super center.

AchievementsAchievements Thanksgiving Day 2002 largest single Thanksgiving Day 2002 largest single

sales day in history of any company in sales day in history of any company in the world; 1.43 billion dollars.the world; 1.43 billion dollars.

MarketsideMarketside is a new chain of grocery is a new chain of grocery stores opened in October 2008.stores opened in October 2008.

1999 now the largest employer in the 1999 now the largest employer in the world.world.

Also During the recession epoch also was Also During the recession epoch also was the the World’s Biggest Employer in World’s Biggest Employer in 2007-20092007-2009 employing 2,055,000 people. employing 2,055,000 people.

The Financial Position Of Wal-The Financial Position Of Wal-Mart StoresMart Stores

Wal-Mart Stores (63.7% Wal-Mart Stores (63.7% of Revenue, 79.6% of of Revenue, 79.6% of Operating Income)Operating Income)

1.1. Wal-Mart's Wal-Mart's stores accounted for stores accounted for $255.7 billion of the $255.7 billion of the company's revenue during company's revenue during fiscal year 2009 which fiscal year 2009 which was a 6.8% increased was a 6.8% increased from sales from 2008. from sales from 2008.

2.2. Which was slightly higher Which was slightly higher compared to 1.0% growth compared to 1.0% growth in 2008 and 1.9% growth in 2008 and 1.9% growth in 2007. in 2007.

The Financial Position Of The Financial Position Of Sam’s ClubSam’s Club

Sam’s Club (11.7% of Sam’s Club (11.7% of Revenue, 7.4% of Revenue, 7.4% of Operating Income)Operating Income)

The second largest in America The second largest in America after after Costco Costco by sales. by sales.

The company operated 602 Sam’s The company operated 602 Sam’s Club locations nationwide, which Club locations nationwide, which generated $46.8 billion in total generated $46.8 billion in total sales during fiscal year 2009. sales during fiscal year 2009.

  Wal-Mart plans to open 15-20 Wal-Mart plans to open 15-20 new Sam's Club locations across new Sam's Club locations across Europe and India. Europe and India.

The Financial Position Of Wal-The Financial Position Of Wal-Mart InternationalMart International

Wal-Mart International Wal-Mart International (24.6% of Revenue, 21.7% (24.6% of Revenue, 21.7% of Operating Income)of Operating Income)

Generates $98.6 billion Generates $98.6 billion in revenue in 2009, a in revenue in 2009, a 9.1% increase from 9.1% increase from 2008 sales.2008 sales.

They are expected to They are expected to turn to their turn to their international locations international locations to continue real estate to continue real estate growth.  growth. 

Unique Features of Wal-Unique Features of Wal-MartMart

The only company to provide the The only company to provide the goods at the cheapest way possible.goods at the cheapest way possible.

Has their own Broadcasting Satellite Has their own Broadcasting Satellite and can solve queries very easily.and can solve queries very easily.

They hire professional drivers so that They hire professional drivers so that no traffic violation is not occurred and no traffic violation is not occurred and the goods can also be transported the goods can also be transported very safely.very safely.

Respond to queries immediately Respond to queries immediately

StrengthsStrengths

Name recognitionName recognition Store brands: Sam’s Choice, OL’Roy, Store brands: Sam’s Choice, OL’Roy,

Sam’s Club ,Eagles, Marketside Sam’s Club ,Eagles, Marketside insurance services etc.insurance services etc.

Satellite Communication NetworkSatellite Communication Network No more manufacturers’ No more manufacturers’

representatives.representatives.

Your Questions and Your Questions and Queries are Queries are

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