Saving people money so they can live better...

50 years.

Ours is a story about the kinds of traditional principles

that made America great in the first place. Its a story about entrepreneurship, and risk, and hard work, and knowing where you want to go and being willing to do what it takes to get there. Its a story about believing in your idea even when some other folks dont, and about sticking to your guns. Sam Walton

Table of Contents

1960s.................................................................5 1970s...............................................................11 1980s...............................................................27 1990s...............................................................47 2000s...............................................................73 2010s.............................................................113 Walmart International................................116 Sam Waltons 10 Rules..................................120

I had to pick myself up and get on with it, do it all over again, only even better this time.

Sam Walton

1960s

1962

1964 115 DEGREE HEAT

Springfield, Arkansas
In 1964, Sam Walton opens a Walmart in Springfield, with truckloads of watermelons stacked outside in 115 degree heat. Eventually the heat bursted the watermelons, creating a sticky mess inside and out of the store. Donkey rides were also featured during the opening. It was said by David Glass that this was the worst retail store opening he had ever seen.

1960s

WALMART GRAND OPENING

Rogers, Arkansas
After approaching Ben Franklin franchise owners, who were unwilling to agree to Mr. Sam insisting on a proposal to slash prices significantly and operate at a high volume, Sam and his brother Bud, decided to open their own full retail store in Rogers, Arkansas. Investing 95% of their capital earned from Waltons Five & Dime, a small store that Mr. Sam bought from Luther E. Harrison, the first Walmart was officially born.

Key Highlights
-First Walmart store opens in Rogers, Arkansas -Sam Walton hires his first pilot for Walmart Aviation -By the end of the decade, 38 Walmart stores are operating in 3 states.

Key Figures
-$1 million in first year sales -$21 million net sales by the end of the decade

Key People

Sam Walton

Ferold Arend

Bud Walton

1965 BEN FRANKLIN

Sam Walton owns 16 Ben Franklin stores, more than any other retailer in the United States. At this time, Ferold Arend joins Sam as vice president of operations for Ben Franklin stores. His success earned him the responsibility the next year of heading operations for both Walmart and the Walton Ben Franklin stores. A total of six Walmarts are operating.

1966 NUMBER 7
Little Rock, Arkansas
A seventh Walmart opens, in North Little Rock. The Waltons now own 24 stores. Together they are ringing up $12.6 million in sales.

HOW WALMART GOT ITS NAME

We were flying to Fort Smith in the spring of 1962, and Sam was piloting the plane over the Boston Mountains. Sam pulled this card out of his pocket, on which had three or four names, and he handed it to me and asked which one I like best. They all had three or four words in the title, and I said, Id just keep the Walton name and make it a place to shop. I scribbled W-A-L-M-A-R-T on the bottom of the card and said, To begin with, theres not as many letters to buy. I had bought the letters that said Ben Franklin, and I knew how much it cost to put them up and to light them, so I said, This is just seven letters. He didnt say anything and I dropped the subject. A few days later I went by to see when we could start setting the fixtures in the building, and I saw our sign maker already had the W-A-L up there and was headed up with the letter M. You didnt have to be a genius to figure out what the name was going to be. -Bob Bogle, first manager of Waltons Five and Dime

1968

1960s

IBM
In June, Sam Walton attended an IBM class for executives, which lays the foundation for a partnership between Walmart and IBM. Sam hires talented IBMers to develop Walmarts computing infrastructure.

WALMART AVIATION
Sam and Bud hire pilots to fly them to their growing network of stores. John Walton is their first pilot. Sam Walton personally flew his 1948 Ercoupe to visit early Walmart stores (and some competitors) throughout the Ozarks. In those days traveling by air as opposed to driving the hilly terrain saved valuable time. Today, Walmart Aviation honors Waltons legacy, providing the company with a competitive business advantage through the quick, safe, and efficient movement of Walmart Associates around the world.

Building a business...
By the end of the 1960s, Walmart had a core management team and a dynamic plan for growth. In 1968, Sam attended an IBM computer class for executives to learn how to use this new technology in opening his business. The next year, Walmart purchased its first computer system to track sales and inventories. Whats selling? Whats not? What needs to be backordered, marked down, replaced? Sam also hired a full-time pilot to help scout locations for new stores and distribution centers to keep the stores supplied. Walmarts retail operations were up and running, ready to support an expanding network of stores.

1969 WALMART INCORPORATES

The company officially incorporates as Walmart Stores, Inc. Five more Walmarts are opened in Arkansas and Missouri, including a 30,000- square-foot Walmart in Newport, Arkansas, the town Walton was forced to leave in 1949, when his landlord would not renew the lease. By the end of the decade, 38 Walmart stores are operating in 3 states.

COMPUTERIZED PAYROLL
For the first time, company associates are paid through a centralized, computerized payroll system rather than with traditional checks from each store.

fact...

EDLC=EDLP
In an effort to level out sales curves and spread out increased efficiency, Walmart officially adopted Every Day Low Prices (EDLP), a pricing strategy that would carry Walmart to greater success. Originally Low Prices Every Day, the phrase is simply flipped to emphasize that on every day, on every product, Walmart offers low prices. Commonly referred to within the organization by its acronym, EDLP is driven by a company-wide embrace of Every Day Low Cost (EDLC), a laser-like focus on doing more with less and reducing operating expenses.

Celebrate your successes. Find some humor in your failures. Dont take yourself so seriously. Loosen up, and everybody around you will loosen up. Have fun. Show enthusiasm - always. When all else fails, put on a costume and sing a silly song. Then make everybody else sing with you. Dont do a hula on Wall Street. Its been done. Think up your own stunt. All of this is more important, and more fun, than you think, and it really fools the competition. Why should we take those cornballs at Wal-Mart seriously?

Sam Walton

1970s

1970

1971 PROFIT SHARING BEGINS

14 new Walmart stores were built, which totalled 604,000 square feet of floor space. The Bentonville distribution center doubled its square feet to more than 124,800 by the end of 1971. Walmart develops a new profit sharing program by the board of directors for all Walmart associates. In May, Walmart stock experiences its first 100% split at a market price of $47.

1970s

HOME OFFICE IS BUILT

Bentonville, Arkansas
Sam Walton purchases fifteen acres of farmland outside of Bentonville for about $25,000. Walmart needs a home office and a distribution center and Mr. Sam puts Bob Thorton in charge of building a 15,000-foot general office and a 60,000-foot warehouse. Walmart World Issue 1 is printed.

Key Highlights
-First distribution center opens as well as the Walmart Home Office -Walmart becomes enlisted on the New York Stock Exchange -Walmart becomes the first company to reach $1 billion sales -Mr. Sam creates the Walmart Cheer

Key Figures
-$1.248 billion net sales by the end of the decade -258 Walmart stores were constructed -3 Distribution centers open -12.6 million square feet of retail space are added. -By 1979, Walmart has over 21,000 associates and 276 stores

Key People
Sam Walton Ferold Arend Jack Shewmaker

Bud Walton

Ronald Mayer

1972 WALMART GETS LISTED

Walmart becomes listed and approved on the New York Stock Exchange on August 25. Walmart expands the home office to 25,000 square feet and the hardlines distribution center to 212,800 square feet. Walmart completes a new 24,000 square foot central marking distribution center for all wearable merchandise. Walmart stock splits for a second time.

1973 LOGISTICS EXPANDS

Bentonville, Arkansas
16 new Walmart stores are built totalling 781,940 square feet. Walmart enters Tennessee. The expanded Bentonville distribution center plays tremendous contribution to over $42,786,831 of shipped merchandise, backhauling 954 loads for the year.

13

Going public...
When we went on the stock market, it didnt mean anything to some of us country boys. The chairman always said I came across the Red River barefooted and hunting a job, which is almost the way it was. I didnt even know what stock was. But I bought some, thank God, because Phil Green said, Hey, you buy some of that stock, boy. and I believed in my store. Its real simple. I believed him when he said we could do all these things with the company. And we did. Al Miles -first assistant manager of store #6

1974

1970s

WALMART GROWS
Twenty new stores open and four stores are remodeled and expanded. Total new store space added amounts to 881,630. A total of $73,000,000 worth of merchandise was shipped to Walmart stores, an increase of 66 percent from the preceding year. The Walmart home office now has a total of 230 associates.

NEW DATA PROCESSER

Walmarts Data Processing Department installs a Singer System 10 to communicate with terminals at the stores, polling twenty-two stores at the time. The DPD also put the Soft Goods Distribution Center online which gives the company the ability to review styles and create a shipping manifest, developed a complete vendor system for distribution center rebuyers, and converted from an IBM 360/20 to an IBM 370/125 computer.

Mr. Sams trip to Korea...

Sam took me out to see this tennis ball factory, somewhere east of Seoul. The company sold balls to Walmart, I guess, and they treated us very well. It was the dirtiest place I ever saw in my life, but Sam was very impressed. It was the first place he ever saw a group of workers have a company cheer. And he liked the idea of everybody doing calisthenics together at the beginning of the day. He couldnt wait to get home and try those ideas out in stores and at the Saturday morning meeting. -Helen Walton

Ronald Mayer
In 1974, Sam Walton stepped back from the company to let Ron Mayer become chairman and CEO. Years later, in 1976, Sam Walton reclaimed his role as chairman and CEO.

1975 SAVE-CO BUILDING SUPPLY

Sam Walton launches the first Save-Co Building Supply and Home Improvement Center in Mountain Home, Arkansas in March. Approximately 1.4 million circulars are mailed within the radius of current Walmart stores. Walmarts advertising costs average less than two percent of sales on a yearly basis.

WALMART #1 BY FORBES
Forbes ranks Walmart number one among general retailers. Twenty-six new stores opened and two existing stores were enlarged, increasing square footage to 1,083,326, total. A new 150,000 square foot Distribution Center begins operation in January. During 1975, 60 percent of merchandise shipped to stores comes from Walmart warehouse and distribution centers.

15

Walmart training...
Walmart establishes its first training department with the intent of formulating and implementing a concrete program of practical training for company associates. Utilizing color slides and synchronous taped narration and sound effects, the training department prepares presentations dealing with ordering, checkout, shoplifting, store-level purchase orders, company orientation and indoctrination.

1970s

100TH STORE OPENS

Sam Walton receives a special award commemorating Walmarts 100th store opening located in Bentonville, Arkansas, from Ferold G. Arend, president. Three operating regions are formed within eight-state marketing areas, each with its own Vice President who works out of the home office and reports directly to the Vice President of Operations. Each Regional Vice President has three or four District Managers reporting to him who have the responsibility of overseeing the total operation of ten to twelve stores.

ELECTRONIC REGISTERS
Electronic and mechanical cash registers by NCR are used in more than 100 Walmart stores record Point-of-Sale data to maintain inventory data. The Store Merchandise Planning Division creates a program to allocate department space, improving efficiency by using schematics and photos along with merchandise labels, now known as MODS.

WALMART OPERATING REGIONS - 1975

Northern Region Central Region Southern Region > > > Regional VP: Tom Jefferson Regional VP: John Hawks Regional VP: M.I. Dillard > > >
District managers: Bob Hart, Gary Reinboth, A.R. McDonald, Ron Loveless, Bill Adams District managers: Al Miles, Jack Mackey, Mel Acree, Clarence Leis, Phil Green

District managers: Richard Cudd, Ray Thomas, Rex Chase, Gary Smith, John Jacobs

1976 WALMART REVOLUTIONIZES

All stores are air conditioned and have modern fixtures and equipment, including carpeted areas for the sale of wearing apparel in most stores. All stores feature thirtysix full-line departments and offer a wide variety of merchandise. Generally, most Walmarts are open six days a week, from 9 a.m. to 9 p.m. Each store is managed by a store manager and two or more assistant managers.

LOSS PREVENTION
The Security and Loss Prevention Division is established to observe all facets of store operations. Approximately 80 percent of Walmart store purchases are shipped from the companys warehouse and distribution center. All Walmart stores are located within 350-400 miles from Bentonville. Walmart leases tractors and trailers to deliver goods from its distribution facilities to the stores.

17

Making progress...
By the middle of the decade, Wal-Mart employed more than 7,500 associates in 125 stores with sales of $340.3 million, and in 1975 entered into the state of Texas. Wal-Mart stock split for the third time in August of that same year, with a market price of $24, and the company made its first acquisition, taking control of 16 Mohr-Value stores in Michigan and Illinois.

1977

1970s

HOME OFFICE IMPROVES

The home office expands 31,000 feet. All purchasing and merchandising for Walmart stores is controlled from the companys home office through centralized buying and planning practices. Walmart carries an extensive advertising and promotional program for its Walmart stores, which is directed from the advertising department. Advertising circulars are distributed approximately 12 times yearly throughout the trading area. The company has its own plant for printing circulars and newspaper inserts.

FIRST ACQUISITION
Walmart acquires 16 Mohr Value stores. 28 new stores open. Walmarts net sales increase to $478 million. Walmart enters Illinois, its 10th state. The average Walmart store now carries over 35,000 different stock-keeping units.

The Walmart Home Office

Today the Walmart home office, orginally built in 1970, includes 26 buildings in Bentonville & Rogers, Arkansas and Jane, Missouri. The home office occupies more than 1.5 million square feet with more than 15,000 associates. Nearly 100,000 vistiors a year sign into the home office. There are nearly 800-1,000 supplier meetings each week.

NETWORK COMPLETES
Walmart completes its installation of a company-wide computer terminal network. With this communication network, messages pertaining to any phase of operations can be sent to and from the stores immediately. The system also allows store management to know on a daily basis their exact payroll costs and also permits the stores to forward their payroll data to home office without delay. This network permits the company to communicate with stores within hours and no longer days.

9 MILLION MILES
Utilizing 73 tractors and 288 trailers, Walmarts 115 professional drivers logged a total of approximately 9,000,000 miles. Walmart drivers hauled 15,817 loads of merchandise, which represent 38,851 store deliveries. In addition, 874 loads of freight were moved directly from vendors to the stores, and 5,605 loads from vendors to the distribution facilities. Distribution Centers now utilize conveyor belts.

19

1978

1970s

NEW COO
In August, Jack Shewmaker becomes president and Chief operating officer of Walmart Stores Inc. Walmart opens 35 new stores and enlarges or relocates eight stores, adding 1,600,000 square feet of new retail space, increasing the total to 10,200,000.

SAVE-CO CLOSES
The last remaining Save-Co Home Improvement Center closes. Walmart buys the Hutchheson Shoe Company.

Sam hired me in 1970 as a district manager in charge of new store openings. He had eighteen Walmarts and some variety stores doing about $31 million a year. I moved my family, and as the van was unloading the furniture into our rented house, they called the office and said, Can you go set up this new store in Missouri? My wife, who had three babies and a moving van to deal with, helped me find some clothes, and I left. I didnt see her again for two weeks. Then there was a mangers meeting so I didnt see her for two more weeks. It would be safe to say that in those days we all worked a minimum of sixteen hours a day.

Jack Shewmaker

PHARMACY BEGINS
Walmart begins its pharmacy operations in seven stores as a separate division. Establishment of a separate division for hobby and crafts departments. TBA (Tire, Batteries and Accessories) departments open in two stores. Walmart establishes a Jewelry Division in 48 stores.

CLAIMS CENTER OPENS

Walmart establishes a central Claims Center, where all defective merchandise is processed for savings in handling and freight costs. Walmart Constructs and begins operation of a new 390,000 square foot distribution center which distributes merchandise to over 40 percent of Walmart stores.

21

Personal and moral integrity is one of our basic fundamentals and it has to start with each of us. Sam Walton

1979

1970s

$1 BILLION IN SALES
Walmart is the first company to reach $1 billion in annual sales in such a short period of time. Walmart opens 47 new stores, adding an additional 2.4 million square feet of retail space. Walmart expands into Alabama.

PROJECT 79
Project 79 begins. Ron Loveless oversees the operations of the store and helps formulate new concepts and designs to model for future stores. The store features wider aisles and doesnt have features on stackbases in action alley. Sam Walton later visits the store and addresses issues that would conflict with Walmarts Everyday Low Cost philosophy.

Project 79
Wal-Mart opens a 62,400-square-foot store in Pine Bluff, Ark. The unit, Project 79, is designed as an experiment in physical plant design, fixture composition and merchandise presentation

ENERGY EXPRESS
Walmart adopts a program called Energy Express, using vans to transport associates to and from their jobs. The new program helps cut back costs on associates and helps ensure associates are brought safely to and from work, while promoting stainability by having less vehicles on the road.

WALMART FOUNDATION
The Walmart Foundation is established; its first trustees are Sam Walton, David Glass, and Jack Shewmaker. The Walmart Aviation Maintenance Department is established to work on the original Walmart Fleet... Sams aircraft. Walmart adds a 16,000 square foot data processing facility to house the latest technology and improve the communications and information network.

23

Walmart goes national

In the 1970s, a decade of incredible growth, Mr. Sam begins to take Walmart national, proving his visions widespread appeal. Walmart expands its selection of products for its growing family of loyal customers. Pharmacy. Car care. Jewelry. In the seventies, the first Walmart distribution center opens and so does the Home Office, both in Bentonville, Arkansas. And in 1979, Walmart became the first company to reach $1 billion in sales in such a short time.

EXECUTIVE OFFICERS
*

SENIOR **EXECUTIVE

TITLE
CHAIRMAN OF THE BOARD OF DIRECTORS

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

SAM WALTON SAM WALTON RONALD MAYER FEROLD AREND JAMES L. WALTON
DON WHITAKER JOHN HAWKS FEROLD AREND**

CHIEF EXECUTIVE OFFICER

SAM WALTON
JACK SHEWMAKER

CHIEF OPERATING OFFICER

HIGHLIGHTS

SENIOR VICE PRESIDENT

VICE PRESIDENT OPERATIONS

JACK SHEWMAKER

JACK SHEWMAKER**
THOMAS JEFFERSON

THOMAS JEFFERSON*

VICE PRESIDENT FINANCE

RONALD MAYER**

DAVID GLASS** RICHARD TUCKER JACK SHEWMAKER**

AL JOHNSON*

VICE PRESIDENT MERCHANDISE

CLAUDE HARRIS

VICE CHAIRMAN

FEROLD AREND

PEOPLE DIVISION

H.G. ROUNTREE

JAMES ELLIOTT

JACK SHEWMAKER**

DAVID WASHBURN

CORPORATE AFFAIRS

H.G. ROUNTREE S. ROBSON WALTON KEN FOLKERTS

0.15 0.12 0.09
Distributed

GENERAL COUNSEL / CORPORATE SECRETARY

CONTROLLER

C. RAY GASH

PAUL R. CARTER

Stock Price HISTORY

STOCK SPLITS
2:1 Stock Splits On the Offering May 1971 March 1972 August 1975 Shares 100 200 400 800 Cost per Share Market Price Record Date 16.50 8.25 4.125 2.0625 $47.00 $47.50 $23.00 05/19/71 03/22/72 08/19/75 06/11/71 04/05/72 08/22/75

0.06 0.03 0.00

1970 1971 1972 1973 1974 195 1976 1977 1978 1979

DECADE ENDING DATA

1000 800

Net Sales
(In Millions)

600 400 200 0

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979

250

Total Stores

200 150 100 50 0

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979

25

20000

Total Associates

15000 10000 5000 0

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979

Celebrate your successes. Find some humor in your failures. Dont take yourself so seriously. Loosen up, and everybody around you will loosen up. Have fun. Show enthusiasm - always. When all else fails, put on a costume and sing a silly song. Then make everybody else sing with you. Dont do a hula on Wall Street. Its been done. Think up your own stunt. All of this is more important, and more fun, than you think, and it really fools the competition. Why should we take those cornballs at Wal-Mart seriously?

Sam Walton

1980s

1980

1980s

HONG KONG
Walmart opens a buying office in Hong Kong. Walmart opens 54 new stores and adds an additional 2.9 million square feet of retail floor space. A distribution center in Bentonville is now operating and currently being expanded with 202,000 more square feet. Walmart stock splits 100 percent for the fourth time with a market price of $50.

PEOPLE GREETER
The people greeter concept is introduced at Walmart, an idea pitched by Sam himself. Walmart acquires 162 jewelry from Hatfield Distributors. Walmart now operates all departments in its stores. Don Soderquist joins Walmart as Executive VP.

Key Highlights
-Sams Club is founded -The UPC is introduced -Walmart celebrates its 25th anniversery -The Walmart satelitte network completes -First Supercenter opens

Key Figures
-Walmart closes the decade with $25 billion in net sales

Key People
Sam Walton David Glass Donald Soderquist Jack Shewmaker

Bud Walton

Rob Walton

1981 YOU AINT SEEN NOTHIN YET

Walmart adopts its new slogan You aint seen nothin yet to reflect the current spirit of Walmart. Sales increase to almost $2.5 billion with comparable store sales up 15%. Walmart expands to Georgia and South Carolina.

S.W. SCHOLARSHIP FUND

The Sam Walton Community Scholarship fund awards its first 10 scholarships; this is just the beginning of a program that would award over $80 million in scholarships by 2010. Walmart recruits approximately 700 new manger trainees.

29

Walmart Marketing in the 80s

fact...

The advertising and Sales Promotion Department creates and implements a blend of television, radio, circular and newspaper advertising to saturate most markets in Walmarts trade territories. The efficiencies and productivity of these programs adds to the success of Walmarts marketing strategy.

1980s

KUHNS BIG K ACQUISITION

Walmart opens 69 new stores and acquires 92 KuhnsBig K stores and expands 18 older Walmart stores. A new 510,000 square foot distribution center opens in Palestine, Texas. Walmarts Hong Kong office expands to Taipei to enhance direct import opportunities.

1ST PHOTO PROCESSING PLANT

Walmart opens its first photo processing plant in Terrell, Texas. New systems are created to improve existing systems. Walmart implements a new purchase order management system and point-of-sale scanning systems.

fact...

Controlling Expenses
Walmarts expense structure, measured as a percentage of sales, continues to be among the lowest in the industry according to a Cornell University study at the time. Within the expense constraints imposed by Walmarts strategy of selling merchandise at low margins, these support functions have grown at a controlled rate.

1982 INCREASE TO $3 BILLION

Sales increase 38% from $2.445 billion to $3 billion. Walmart builds 159 new stores, 66 of which are remodels of acquisitions with total square footage to 27,728,000. Approximately one third of all associates participate in the Stock Purchase Plan. Ol Roy Dog Food is introduced in stores. Walmart stock splits 100 percent for the fifth time at a market price of $49.87.

NEW DC IS COMPLETED
Construction completes on a new distribution center in Cullman, Alabama which also provides a secondary processing center for apparel and for warehousing and distribution of speciality products. Walmart enters Florida and Nebraska.

31

At Walmart, one man or one woman can affect the future. I worry about keeping our culture, keeping the things we believe in. Our future lies in our associates. If we can instill in them the feeling that theyre out there to serve we can keep the company right-side-up.

Sam Walton

1983

1980s

WE SELL FOR LESS

Walmart adopts the WE SELL FOR LESS slogan. Walmart increases profitability by directing attention to inventory management and improves store inventory turnover rate to 4.5 from 3.9 turns in the preceding year. People greeters make their first appearances in the front of our stores.

WALMART BEGINS USING UPCS

Walmart begins using Universal Product Code (UPC) to scan and keep track of inventories and track point of sale (POS) in 25 of its stores. Significant upgrades are made to almost all backroom computers and pharmacies.

Universal Product Code

Walmart was an early proponent of the Universal Product Code, and one of the first retailers to insist on compulsory adoption by its suppliers, which enabled the company to substantially increase the amount and quality of the data it tracked. Furthermore, the UPC, or barcode, serves in a sense to abstract the items moving through Walmarts supply circuits: they are registered and tracked as numbers rather than things.

1984 SAMS CLUB OPENS

Walmart follows the footsteps of Sol Price, the orginal pioneer behind the idea of wholesale. Mr. Sam visits Sol in San Diego and learns of the successful business of Price Club, founded by Sol himself. Sam Walton arrives in Midwest City, Oklahoma and rents an old building at around 90 cents a square foot and remodels it. Sam puts together a crew and the first Sams Club is born.

NEW COMPANY PRESIDENT

David Glass is named company President. Walmarts net income increases 38% to $270.8 million. 106 new Walmart stores open along with eight new Sams Clubs and one Helens Arts & Crafts store. 7.5 million square feet of store space is added. Walmart now has a dedicated 81,000 associates who are partners in the business.

33

Wholesale Club Concept

The first Sams Club opened in Oklahoma City in 1983. The intial test for the wholesale club was proven successful and ten additional clubs were in operation by 1984. The wharehouse membership concept was designed to operate at high sales volume and very low gross margins and expenses. The wholesale club concept becomes an integral part of Walmarts future growth plans.

1980s

THE TELXON ARRIVES

Walmart introduces the Telxon to its stores to scan UPC and assist in re-ordering merchandise and information of quantities and cost. At this time, Walmart has seven strategically located distribution centers that assure a constant flow of merchandise to all Walmart stores. Approximately 77% of Walmart merchandise is processed through these seven DCs.

BREAK-PACK
Break-packs are introduced from the distribution centers to help tailor shipments to individual stores by breaking down large, multi-unit merchandise received into smaller, outgoing, combination packages. A new distribution center in Mount Pleasant, Iowa is completed, 650,000 square feet in size.

The Telxon
The Telxon handheld terminal is a direct assistance to store associates in re-ordering merchandise. Upon scanning a shelf label, the unit provides a description of the merchandise and information on prior quantities ordered, cost and retail of the merchandise item and the extended cost and retail of quantity being ordered. This device and accompanying system save significant time in the ordering cycle, which in turn improves services to our customers.

HELP DESK
The Data Communications Department establishes a help desk to provide solutions for stores experiencing problems with data transmissions. A regional merchandising system is developed to assist merchandising associates by tailoring merchandise offerings to the needs of the individual store community with over 128 traits with characteristics such as climate, ethnic orientation, recreational preferences and other demographics.

SAM DOES THE HULA

Sam Walton does the hula on Wall Street, making good on a promise to associates after the company achieved a pre-tax profit of 8 percent for the previous fiscal year. Bob Martin is named CIO.

35

Lets go for it! Lets take care of our associates, lets take care of our people and theyll take care of our customers. Theyll exceed our customers expectations and theyll carry us all on their shoulders. And many of them will rise in our company.

Sam Walton

1985

1980s

WALMART ENTERS THE ROCKIES

Walmart enters additional states, including Wisconsin and Colorado. Net sales reach $6,400,909,000 Total number of Walmart stores: 859 Walmart begins testing of television broadcasting to its stores.

NEW HR SYSTEM
Walmart creates a Human Resources System that stores information of associates location preferences, performance evaluations, training programs completed, job assignments, salary information, family statistics, education and more. The Walton institute of Retailing is established.

A WALMART STORE BUILDING PROCESS

Walmart real estate managers determine appropriate market areas

The real estate committee, consisting of senior management, then awards approval.

The store size is then determined and the construction department contracts for the store construction.

The store planning department plans required fixtures, department layouts, and merchandise presentation.

ROLLBACK
Walmart introduces the rollback on several thousand items by dramatically lowering the prices of the items. UPC scanning systems are now added to 115 new stores to help further improve checkout speed.

BUY AMERICAN CAMPAIGN

Walmart begins increasing efforts in buying American made product by adapting a Buy American campaign. A second film processing plant is built in Bentonville, Arkansas. A new distribution center in Douglas Georgia begins construction.

37

After a four month process, construction of the store completes and the store planning department takes possession.

The store planning department supervises the setting and assembly of fixtures to receive and stock merchandise with a detailed planogram.

The store is then assigned a store manager and at least two assistant managers who have completed Walmart store management training programs.

The hiring process begins and soon the store opens.

1986

1980s

SUPERCENTER DEVELOPS
Net sales increase to almost $8.5 billion. Walmart Supercenters are currently in development and are to be planned to open next year. Supercenters are estimated to be built in excess of 220,000 square feet. These store concepts are based off of hypermarkets in Europe. All new stores open with advanced scanning systems.

VPI CONTINUES TO SUCCEED

The Volume Producing Items (VPI) program was introduced in 1976 by Sam Walton himself and continues to remain successful. Each week, 750 stores submit, on average, 3,200 VPI entries featuring a creative display technique or recently identified hot item that has produced outstanding sales volume in that particular store. These items and display ideas are tabulated and then disseminated to all stores the following week to maximize sales chain wide.

Celebrate your success and find humor in your failures. Dont take yourself so

seriously. Loosen up and everyone around you will loosen up. Have fun and always show enthusiasm. When all else fails, put on a costume and sing a silly song.

Sam Walton

1987 25 YEARS
Walmart celebrates its 25th anniversary. Net Sales of $11.9 billion. Hypermart-USA opens in Garland, Texas. Hypermarket-USA stores are a blend of a modern Walmart store with a supermarket store and a Sams Club. These stores feature around 36 checkouts and span over 200,000 square feet.

SATELLITE NETWORK COMPLETES

The Walmart Satellite Network is officially completed. It is the largest private satellite communications system in the United States which links all stores and home office with two-way voice, two-way data, and one-way video communication. The inauguration of the system features a live broadcast of Sam Walton addressing all Walmart associates.

39

Walmart Satellite Network

Company chairman Samuel M. Walton and president David Glass inaugurated the network in mid-January with a 15-minute live audio/video transmission to all company stores and divisions scattered in 24 states. Wal-Mart is the nations foremost corporate pioneer in establishing a network of this type, Walton told the more than 185,000 workers watching at headquarters, stores and distribution centers. The multi-million dollar network, two-and-one-half years in the making, is the outgrowth of a $16 million contract to provide the equipment for a turnkey satellite communication network to connect the Bentonville headquarters with just 750 Wal-Mart discount stores and Sams Wholesale Club units as well at two DCs.

1980s

UPC
Universal Product Barcode (UPC) is applied to all the stores and distribution centers. A check-in system designed to take full advantage of container bar code labeling, was also in the backroom of every Wal-Mart store in summer 1987. The use of the UPC brought new convenience in inventory control and distribution management: more accurately sorted shipments and immediate paperless billing; cost efficiencies in the stores backroom freight processing and automated receiving

STORE WITHIN A STORE

Store-within-a-store is adopted as a new tool to involve and equip assistant managers with the necessary skills to develop their retailing careers by giving them total management responsibilities for several departments within their assigned store. An addition of 1.4 million square feet is added to the companys distribution center capacity. Walmart acquires 17 Super Saver Wholesale clubs.

Quote...

Weve made our share of mistakes and weve tried hard to correct them, but weve never covered them up, ... What we need to do much better is to get our story out about how we feel and how we really run our business. -David Glass

1988 FIRST SUPERCENTER OPENS

The first Walmart Supercenter opens in Washington, Missouri. Walmart operates in 29 states. David Glass is named chief executive officer of Walmart. Bar code scanning at checkouts is now in over 90% of Walmart stores.

CHILDRENS MIRACLE NETWORK

Walmart officially sponsors the Childrens Miracle Network, holding local fundraisers and projects such as Miracle Week which runs from May 1st to May 7th. Walmart introduces new caring services to its associates. The Health Hotline and Resources for Living are successfully inaugurated along with Safety Committees for associates and customers.

41

Resources for Living

Through Resources for Living, Walmart provides a free confidential service to help give associates and their family members physical, mental, emotional, financial and career wellness coaching. The service is available 24 hours a day, 365 days a year.

1980s

300,000 DELIVERIES
Ten distribution centers are now operating processing over 300 million cases of merchandise. Walmarts private fleet of trucks deliver merchandise a minimum of five times a week and make over 300,000 store deliveries. Walmart develops EDI, electronic data interchange for its suppliers.

SAMS 100TH CLUB OPENS

Sams Club opens its 100th club in Joliet, Illinois. Sams Club now operates in over 21 states and has more wholesale clubs than any other competitor in the industry. Sams Club sales are up 41 percent to $3.8 billion. Sams Club introduces the Advantage Card program for members for $25, which eliminates the five percent upcharge others group members pay. Pharmacy, One Hour Photo, Optical, and Express Mailing are added to select Sams Clubs.

Listen to your associates. Theyre the best idea generators.

Sam Walton said that, and he believed it. For years, he traveled continuously so he could visit all of his stores at least once a year, listening to associates and asking for their ideas.

1989 25 BILLION
Walmart closes the decade with over $25 billion in net sales. Walmart is awarded as the 1989 Mass Market Retailer of the Year by the Mass Market Retailers publication. Total square footage exceeds 100 million. A third Walmart Supercenter opens in Farmington, Missouri. Six convenience store prototypes open adjacent to existing Supercenter, Hypermarket, Walmart or Sams Club locations.

NEW TRAINING & BENEFITS

Sams Club introduces full-line bakeries and meat & produce departments. Distribution Center Management Training seminars are introduced. Personal Choice, a flexible associate benefits plan, is now offered to Associates which grants them the opportunity to customize their benefits and have dental and life insurance.

43

The power of teamwork...

As our business grows and the pace of modern life quickens, Sams philosophy of teamwork has become even more important. Our ability to work together affects the quality of service our customers receive. To give the very best service to our customers, and to each other, we rely on guidelines that make our culture great and make us proud to be a member of the Walmart family.

EXECUTIVE OFFICERS
*SENIOR **EXECUTIVE

TITLE
CHAIRMAN OF THE BOARD OF DIRECTORS

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

SAM WALTON SAM WALTON JACK SHEWMAKER JAMES L. WALTON

THOMAS JEFFERSON* THOMAS JEFFERSON** DAVID GLASS

CHIEF EXECUTIVE OFFICER

DAVID GLASS
DONALD SODERQUIST

CHIEF OPERATING OFFICER

HIGHLIGHTS

SENIOR VICE PRESIDENT

VICE PRESIDENT OPERATIONS

A.L. JOHNSON**

DONALD SODERQUIST**

DEAN SANDERS

CHIEF FINANCIAL OFFICER

DAVID GLASS** A.L. JOHNSON* FEROLD AREND DAVID WASHBURN H.G. ROUNTREE S. ROBSON WALTON CHARLES SELF
6 5 4 3 2 1 0
1980 1981 1982 1983 DAVID GLASS

JACK SHEWMAKER

PAUL CARTER

VICE PRESIDENT MERCHANDISE

A.L. JOHNSON**
S. ROBSON WALTON JACK SHEWMAKER

BILL FIELDS**
DONALD SODERQUIST

VICE CHAIRMAN

PEOPLE DIVISION

THOMAS COUGHLIN

WESLEY C. WRIGHT

SUZANNE ALLFORD

CORPORATE AFFAIRS

GENERAL COUNSEL / CORPORATE SECRETARY

ROBERT K. RHOADS JAMES WALKER JR.

CONTROLLER

Stock Price HISTORY

STOCK SPLITS
2:1 Stock Splits November 1980 June 1982 June 1983 September 1985 June 1987 Shares 1600 3200 6400 12,800 25,600 Cost per Share Market Price Record Date 1.03125 0.515625 0.257813 0.128906 0.064453 $50.00 $49.875 $81.625 $49.75 $66.625 11/25/80 06/21/82 06/20/83 09/03/85 06/19/87 Distributed 12/16/80 07/09/82 07/08/83 10/04/85 07/10/87

1984

1985

1986

1987

1988

1989

DECADE ENDING DATA

25 20

Net Sales
(In Billions)

15 10 5 0
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

1500

Total Stores

1200 900 600 300 0

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

45

250

Total Associates
(In Thousands)

200 150 100 50 0

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

The way we make change happen is one assocaite at a time, one store or club at a time, a customer at a time. It is only on an individual basis that we can make things happen.

David Glass

1990s

1990

1990s

NUMBER ONE RETAILER

Walmart becomes the nations number one retailer. Walmart now has 328,000 Associates. Net sales increase 26 percent to $32.602 billion. Walmart expands into California, Nevada, North Dakota, Pennsylvania, South Dakota, and Utah. New stores now average 100,000 square feet and feature wider aisles. Total square footage grows to 111 million. Sams Club opens 25 new clubs. Sams Club adopts HEATKTE (high expectations are the key to everything) as their strategic rallying cry.

MCLANE COMPANY
Walmart acquires the McLane Company. McLane is a provider of retail and grocery distribution center services. McLane has a total of 14 DCs in 11 states. A total of 315,000 trailer loads of merchandise are delivered. Distribution center square footage now equals 14.6 million.

Key Highlights
-Walmart becomes the nations number one retailer -Walmart enters Mexico -Founder Sam Walton passes away -Walmart International is established -Walmart experiences its first billion dollar sales week -Neighborhood Markets are introduced -Walmart is named Retailer of the Century

Key Figures
-Walmart stock splits 100 percent for the 11th time with a market price of $89.75 in the late 90s -Walmart becomes the largest private employer

Key People
Sam Walton David Glass Donald Soderquist

Bud Walton

Rob Walton

Lee Scott

VISITORS CENTER OPENS

The Walmart Visitors Center opens where Waltons Five & DIme had once operated. A prototype data warehouse system was created at WalMart, which stored historical sales data.

9TH 100% STOCK SPLIT

Walmart stock splits 100 percent for the ninth time. Walmart announces a new system, Retail Link, as an aggressive step to further advance vendor relations by moving beyond electronic data sharing. Retail Link provides vendors with sales trends and inventory levels transmitted via satellite.

49

The Walmart Way

The Walmart Way is a phrase, often empolyed to summarize our unconventional approach to business and the determination of our associates, that has taken on new meaning to capture our commitment to Total Quality, which is essential to our future success. We stepped outside our retailing world to examine the best-managed companies in the United States in an effort to determine the fundamentals of their success and to benchmark our own performances, thereby challenging ourselves to ongoing improvement. We believe Total Quality is our vehicle for proliferating the very best things we do while incorporating the new ideas our people have that will assure our future. Total Quality - its a journey not a destination.

1991

1990s

MID-ATLANTIC WELCOME
Sales increase 35 percent to $44 billion. Sams Club opens 60 new clubs. New stores open in the northeast and mid-Atlantic regions, including Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, and New York.

NEW ACQUISITIONS
Walmart acquires Phillips Companies, Inc. which has 20 food stores in Arkansas. Walmart acquires Western Merchandisers, Inc. which is a wholesale distributor of books and prerecorded music. Walmart acquires 20 Wholesale Clubs.

Its more important than ever that we develop leaders who are servants and who are listening to their partners, their associates and doing it in an exceptional way that theyre creating wonderful morale so the whole team will accomplish the overall goal.

Sam Walton

WALMART ENTERS MEXICO

Walmart opens in Mexico. Walmart and CIFRA, Mexicos largest retailer, form a joint venture and establish Club Aurrera a wholesale club based off of Sams Club, but tailored to the surrounding culture. Walmart starts the planning stage of entering in Puerto Rico.

SAMS AMERICAN CHOICE

Sams American Choice brand products are introduced. Walmart introduces Rollback America, passing savings from Walmart suppliers to customers. Walmart encourages its associates to get involved in local community projects to help build a more sustainable environment.

51

Americas Top Retailer

Walmart comes to suburban America and beyond. By 1990, it is the nations number-one retailer. As the Walmart Supercenter redefine convenience and one-stop shopping, Every Day Low Prices go international. Argentina, China, Mexico, and others welcome Walmart again confirming Sams Vision. The decade sees the passing of Sam Walton, in 1992, and of Bud Walton, in 1995, brothers and co-founders of Walmart. But their legacy and the values they have instilled in the company live on and continue to define Walmarts future.

1992

1990s

FIFTY-FIVE BILLION
Walmart now has 434,000 associates. Sales increase to $55 billion, a 26 percent increase. Walmart adds over more than 34.5 million square feet of store and club space. Sam Waltons biography is published.

MEDAL OF FREEDOM
President George H. W. Bush presents Sam with the Medal of Freedom. During his acceptance speech, Sam articulates the companys purpose of saving people money so they can live better. Sam calls the award the highlight of our entire career. Sam Walton passes away on April 5. Rob Walton becomes Chairman of the Board.

March 29, 1918 April 5, 1992

An American original, Sam Walton embodies the entrepreneurial spirit and epitomizes the American dream. Concern for his employees, a commitment to his community and a desire to make a difference have been the hallmarks of his career. By sponsoring scholarships for Latin America, he has also worked to bring peoples closer together and to share with others the American ideals he so well represents. A devoted family man, business leader, and statesman for democracy, Sam Walton demonstrates the virtues of faith, hope, and hard work. America honors this captain of commerce, as successful in life as in business.

Sam Walton

LOGISTICS EXPAND
Over 850,000 loads of merchandise are delivered. Walmart has 22 distribution centers operating, averaging almost one million square feet. These facilities received and shipped more than 769 million cases to stores over the year. Walmart has approximately 2,500 drivers 16,000 distribution Associates. Two new distribution centers in Menomonie, Wisconsin and Clearfield, Pennsylvania plus a specialty center in Hurricane, Utah and a long-term storage facility in Buckeye, Arizona are being planned for 1993.

RADIO FREQUENCY
Radio frequency technology is introduced and enables the company to put more and higher quality sales and inventory information in the hands of store associates. All Associates may now share key messages simultaneously over Walmarts private satellite communication systems.

53

Quote...

We lead when we embrace my dads vision to improve the lives of everyday people by making everyday things more affordable. To do so, we must meet todays challenges, and those in the future, in a way thats consistent with the values and customer focus that have taken us where we are. -Rob Walton

1990s

WALMART MEXICO EXPANDS

Walmart Mexico currently has three Club Aurreras, four Bodegas discount stores, and one Aurrera combination store. Supercenters continue to grow and offer more convenience with one-stop shopping through the introduction of a complete deli, fresh bakery and complementary convenience shops, such as: portrait studios, dry cleaners, optical shops, and hair salons.

SUSTAINABILITY MILESTONE
Walmart actively promotes sustainability and recycles approximately 442,000 tons of paper and plastic and starts printing all circulars on recycled paper. Walmart aggressively promotes its Buy American campaign and challenges its vendors to produce items in America, instead of overseas, to help create more jobs in the U.S. Walmart launches the Competitive Edge Scholarship Fund to fund scholarships in technological fields.

Walmarts Purpose
Sam Waltons vision continues to spread. By offering quality goods and services at the lowest possible price, Walmart has improved the standard of living for people, across America and around the world. This is why Walmart is in the business. Walmart also has a common set of values and behaviors, and operating principles that fuel the companys growth.

1993 $1 BILLION WEEK

Walmart celebrates its first $1 billion sales week. Walmart now has over 528,000 associates. Net sales are over $67 billion. Walmart acquires 109 Pace Warehouse Clubs. Walmart now has over 2,440 stores and clubs. Walmart acquires distribution facilities from the Southland Company. Expansion continues, into Alaska, Hawaii, Rhode Island, and Washington; Walmart now has stores in 49 states.

WALMART INTERNATIONAL
The Walmart International Division is created, to improve the companys ability to expand overseas. Bobby Martin becomes Walmarts International president. Walmart opens two new Supercenters in Mexico, which feature 52 and 44 check-out lanes.

55

Our major aim and concern must constantly be to do a better job satisfying our customers, both with service and selection and assortment of merchandise.

Sam Walton

1990s

BEST COMPANY TO WORK FOR

Walmart gets listed in the The 100 Best Companies to Work For in America book. Walmart becomes the largest corporate sponsor of the Childrens Miracle Network. Walmart aids to Midwest flood victims, by the truckloads and also provides victims from southern California earthquakes cash and relief supplies.

GREAT VALUE
Great Value grocery products are introduced. Sams Club Direct launches, a program to concentrate on larger businesses and organizations. Walmart now has over 27 distribution centers, averaging almost one million square feet, shipping more than 800 million cases. A prototype store, designed to be as environmentally friendly as possible, opens in Lawrence, Kansas.

Quote...

Our family is proud of the accomplishments of our Wal-Mart Associates around the world. Without their dedication and commitment, there would be no Wal-Mart. -Rob Walton

1994 96TH STRAIGHT INCREASE

622,000 Associates are employed at Walmart. Net Sales year ending are $82 billion. Walmart increases profits for the 96th consecutive quarter since the company went public in 1970.

NEW ENERGY EFFICIENCY

A second environmentally friendly store is opened in Moore, Oklahoma. The store serves as a demonstration of advanced environmental technologies for OG&E Electric Services whove team up with Walmart to help squeeze the maximum use from every energy dollar. Energy savings are projected to exceed $100,000, making the Supercenter 30 percent more efficient than typical stores. The store features natural lighting via skylights, totally automated lavatories, countertops made from recycled paper bonded with soybean protein, and an environmental education center.

57

Guiding Principles
In order to give customers the best possible shopping experience, always, Walmart focuses the energy of both associates and mangement at the store level. The decision making process is pushed down through the organization to reach the customer. We want our associates to be merchants, and our managers to be leaders. Essential to our success are an open-door policy and open lines of commuincations among Associates as well as customers.

CODE / ADAM

1990s

CODE ADAM
Walmart institutes the Code Adam program to help assist with finding missing children. The program created by Walmart is soon to be instituted by other retailers in their stores. Nearly 20,000 people attend Walmarts annual shareholders meeting.

LEADING THE INDUSTRY

Walmart leads the discount store industry with over 1,990 stores, 143 Supercenters, and 425 Clubs in 49 states and 3 countries. Internationally Walmart now has 123 stores in Canada, 96 stores in Mexico, and three clubs in Hong Kong. Walmart acquires 122 Woolco stores in Canada from Woolworth Corporation.

A Message From John Walsh:

Walmart has a unique child safety measure that they named in tribute to my son Adam, who was abducted from a shopping mall and murdered in 1981. Its called Code: Adam. All Walmart stores issue a Code Adam annoncement over the public address system when a parent reports a missing child. A breif description of the child is provided to all associates, who immediately stop their regular work to look for the child. Store personnel also monitor all exits to ensure that the child does not leave the store. I am deeply touched that Walmart has named this important safety program after my beautiful son. I commend Walmart for what theyre doing, and wish every retailer in the United States would institute a program like Code Adam.

1995 FOURTH LARGEST

Walmart achieves $93.6 billion in net sales. Walmart is now the fourth largest company in the United States, and 12th largest in the world. Walmart now has over 675,000 Associates. Walmart now has a total of 2,400 stores and 470 clubs. Walmart is now operating in all 50 states after moving into Vermont. Bud Walton passes away.

60 MILLION A WEEK
Walmart now has approximately 60 million customers shopping in stores each week. Walmart sells on average 1.8 billion coffee filters, 600 million cans of Sams Choice soda, 2.5 million bicycles and 35,561 trailer loads of Ol Roy dog food a year to customers. Sams American Choice products have grown to over $3.6 million. Supercenters continue to grow and advance the company into more areas to further satisfy customers. Wall Street analysts consider Supercenters as the most powerful concept retailing history.

59

Quote...

Our foucus remains on providing all of our customers worldwide with the best value, the widest assortments, and the friendliest service. We have the best merchants and associates in the industry, and we are well positioned for future growth with our Supercenters and international development. -David Glass

1990s

INCREASING EFFICIENCY
Sams Club stocks 700 items fewer and rotates one-fourth of its inventory every quarter, which brings about 1,000 new items into clubs on a regular basis. A new credit program is created partnering with GE Capital to allow members of Sams Club to charge purchases to their membership cards.

#1 NORTH AND SOUTH

Walmart is now the number one retailer north and south of the border and the 12th largest company in the world. Walmart enters Avellaneda, Argentina. The first store opening is similar to the first Walmart store that opened in Rogers, Arkansas, where customers lined up in sweltering heat. But in true Sam Walton fashion, associates handed out bottles of water and soda along with apples to customers outside. Two weeks after entering Argentina, Walmart enters Brazil, forming a joint venture with Lojas Americanas. Walmart opens a Supercenter in Indonesia.

Walmart International Growth

The Wal-Mart culture has proven that it is transportable to other cultures worldwide. The international market is virtually unlimited, and the farther the Wal-Mart global brand reaches around the world, the greater the opportunity for long-term growth.

RENEWABLE ENERGY
Walmart creates its third green energy efficient store in City of Industry, California. The store features solar panels, skylights, and efficient hearing and cooling systems. The savings are enough to power 200 homes for one year. Walmarts training for associates becomes more mainstream with Computer Based Learning *CBL system. Seasonal merchandise, which has been selling faster in discount stores now receives more floor space and customized assortments are developed in response to regional needs.

A NICKEL FOR A CAN

For every can of Sams Choice soda purchased, Walmart donates a nickel to local nonprofit groups. In 1995, these nickels added up to over $2 million. Walmart associates contribute a total of $9.6 million to the United Way.

61

I would argue that our relentless effort to improve our business has always been tied to trying to make things better for the folks who live and work in our communities.

Sam Walton

1996

1990s

$100 BILLION YEAR

Walmart holds 7% of a $1.4 trillion retail market. Walmart reaches $105 billion in net sales. Walmart serves five million customers a week. The smiley face makes its first appearance in Walmart stores.

1 MILLION MILES A DAY

Walmarts private fleet of trucks drives more than one million miles a day, requiring $50 million of fuel a year Walmart makes Retail Link available to suppliers via the internet and begins using the internet as its application platform. Walmarts Electronic Data Interchange is also made available over the internet for suppliers.

Quote...

Never fail to be open to change when there are ways to improve what youre doing. We cant say, Thats not the way we do it. The world is changing too fast. Weve got to be ready to change with it. If we keep these things in mind, Wal-Mart is going to keep growing and getting better. -Helen Walton

ONLINE STORES
Walmart and Sams Club successfully launches online stores using Secure Socket Layer and Secure Transaction Protocol for secure online card transactions. With an annual technology and communication budget of $500 million and an information system staff of 1200, Walmart leads the industry in information technology. Walmart enters China and has a three story Supercenter which featured 80,000 visitors on its first Saturday.

MISSING CHILDRENS NETWORK

The Missing Childrens Network is implemented in all stores to feature missing children by displaying their information on bulletin boards.

63

Integrity:
There is no area of leadership more important than this one. Our culture is built on the highest level of integrity, and we will continue to hold all associates to these high standards.

1997

1990s

WALMART ON DOW JONES

Walmart replaces Woolworth on the Dow Jones Industrial Average. Walmart net sales increase to $117 billion. Supercenters continue to remain the growth engine of the company.

DAVIDS PROMISE
CEO David Glass promised Associates that if stores exceeded a 15% earnings growth that he would work as a People Greeter and little did he know, he would happily have to fulfill this promise! Walmart is the largest private sector employer in the United States with 680,000 associates plus an additional 115,000 international associates.

fact...

100 Shares in 1970...

At this point in time, if a person bought 100 shares of company stock at $1,650 when the company went public in 1970, their shares would have grown to 102,400, worth more than $5.1 million.

90 MILLION A WEEK
Walmart serves 90 million customers per week, worldwide. Walmart occupies over 310 million square feet of property space. New Supercenter prototypes now range from 110,000 to 220,000 square feet. Walmart Reality leased or sold more than 10 million square feet.

TO THE MOON AND BACK

The Walmart fleet logs 455 million miles as 3,800 drivers make more than 900,000 deliveries. With this distance, Walmart drivers could have gone from the earth to the moon and back 952 and a half times. Walmart owns over 3,300 trucks for hauling merchandise to stores. Walmart drivers average 1.2 million miles without an accident.

65

At Walmart, one man or one woman can affect the future. I worry about keeping our culture, keeping the things we believe in. Our future lies in our associates. If we can instill in them the feeling that theyre out there to serve we can keep the company right-side-up.

Sam Walton

401(k)

1990s

DATA MINING
In 1997, Rob Fusillo, Director of Replenishment Information Systems at Wal-Mart, explained that Wal-Mart had started a data mining application that analyzed sales of individual items at a lower level than we could ever have done previously. Wal-Mart leads the retail industry with its version of a justin-time supply system in which computers track every product and automatically alert warehouses when its time to restock the shelves

401(K) ROLLS OUT

Walmart associates generate $102 million in donations and gifts. Walmart rolls out its 401k savings plan for associates. Walmart introduces OneSource nutrition vitamin centers in stores. Sams Club introduces Members Mark brand.

You cant keep doing what works one time, everything around you is changing. To succeed, stay out in front of change.

Sam Walton

1998 SUPERCENTERS 10TH YEAR

The Walmart Supercenter celebrates its 10 anniversary and opens a 500th store. Walmart completes another year of increased sales of $137 billion. Walmart acquires 21 Wertkauf hypermarkets in Germany. Walmart forms a joint venture and begins operations in Korea. Tom Grimm becomes the new president of Sams Club.

WALMART TV
Walmart introduces the Walmart Television Network for in-store advertising. The network showcases products with commercials for the products sold in stores, concert clips and music videos, trailers for upcoming movies and news. Walmart computer systems receive 8.4 million updates every minute on items that customers take home.

67

Quote...

If Wal-Mart had been content to be just an Arkansas retailer in the early days, we probably would not be where we are today. State borders were not barriers, and people and ideas moved freely from one area to another. The retailer who incorporated the best practices, gathered from various regions ofthe country, and who offered the best prices, assortment and service, earned the customer. -David Glass

1990s

NEIGHBORHOOD MARKET
Walmart introduces the Neighborhood Market concept at three stores in Arkansas. Neighborhood Market stores are predominantly grocery stores, and are meant to attract customers with easier parking, less crowded aisles and quicker checkouts. Neighborhood Markets approximately 23,000 items in the stores.

RETAILTAINMENT
Walmart creates Retailtainment to help make customers enjoy themselves in stores. Retailtainment is a huge success and involves superstars such as Garth Brooks, Trisha Yarwood, Reba McEntire, Brooks and Dunn, the BeeGees and more to perform in Walmart stores. Other forms of entertainment used include cheerleading national champions, cookie stacking contests, clowns painting childrens faces, and holiday themed displays. Walmart exceeds $100 million in annual charitable contributions.

Our three basic beliefs

1. Respect for the individual 2. Service to our customer 3. Strive for excellence

Elements of our culture

1. Servant leadership 2. Will to win 3. Personal humility

walmart.c m

1999 RETAILER OF THE CENTURY

Walmart becomes retailer of the century. Wart proudly moves up in Fortunes list of the top 10 Americas Most Admired Companies in 2000. Net sales increase to $165 billion. The Cone/Roper Report ranks Walmart the number one corporate citizen in America. Walmart acquires 71 Interspar units in Germany. Walmart Acquires the ASDA group plc in the U.K.

WALMART.COM
Walmart.com becomes a separate entity and is based in California to help attract the best technological talent. Jeanne Jackson becomes CEO of Walmart.com. Sams Club introduces the Elite card.

69

There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending their money somewhere else.

Sam Walton

EXECUTIVE OFFICERS
TITLE
CHAIRMAN OF THE BOARD OF DIRECTORS

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

SAM WALTON

S. ROBSON WALTON DAVID GLASS WILLIAM FIELDS THOMAS COUGHLIN BOB MARTIN

CHIEF EXECUTIVE OFFICER

CEO WALMART U.S.

HIGHLIGHTS

CEO WALMART INTERNATIONAL

CEO SAMS CLUB

A.L. JOHNSON

DEAN SANDERS DONALD SODERQUIST PAUL CARTER DONALD SODERQUIST

JOSEPH HARDIN

MARK HANSEN

THOMAS GRIMM

CHIEF OPERATING OFFICER

H. LEE SCOTT

CHIEF FINANCIAL OFFICER

JOHN MENZER
H. LEE SCOTT
DONALD SODERQUIST*

VICE CHAIRMAN

PRESIDENT
WALMART REALTY

THOMAS SEAVY WILLIAM FIELDS** DAVID DIBLE* ROBERT K. RHOADS WESLEY WRIGHT THOMAS COUGHLIN

PAUL CARTER H. LEE SCOTT** BOB CONNOLLY**

VICE PRESIDENT OF MERCHANDISING

GENERAL COUNSEL / CORPORATE SECRETARY

EXECUTIVE VICE PRESIDENT SPECIALTY DIVISIONS

DAVID DIBLE

Stock Price HISTORY

STOCK SPLITS
2:1 Stock Splits June 1990 February 1993 March 1999 Shares 51,200 102,400 204,800 Cost per Share Market Price Record Date 0.032227 $62.50 06/15/90 02/02/93 3/19/99 Distributed 07/06/90 02/25/93 04/19/99 0.016113 $63.625 0.008057 $89.70

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

DECADE ENDING DATA

150 120

Net Sales
(In Billions)

90 60 30 0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Total Stores

4000 3500 3000 2500 2000 1500 1000 500 0

71
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Total Associates
(In Thousands)
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

The fact is no company can make the difference that Walmart can make. You have the opportunity to go to work every day, to help people live better, and to help make the world a better place.

Lee Scott

2000s

2000

2000s

LEE SCOTT
Lee Scott becomes Chief Executive Officer. Net sales reach more than $191 billion. Net income reaches $6.3 billion. Walmart has 3,100 domestic stores within the United States. Nearly 100 million customers shop at Walmart each week. Drive-thru pharmacies become a standard when opening new Walmart Neighborhood Markets. Walmart is now the largest domestic food retailer.

$32 BILLION INTERNATIONAL

Walmart International achieves $32 billion in revenues. Walmart opens an 11th store in Argentina. Walmart also donates over $200,000 to communities in Argentina. Walmart also has 20 stores in Brazil and soon enters Rio de Janeiro. Puerto Rico soon gets its first distribution center and remodels two clubs. Mexico operations consist of 499 stores. Walmart Canada features 174 stores. Walmart opens a new Supercenter in China underground, below a new soccer stadium. Walmart also has 6 stores in Korea, 94 in Germany and 241 in the United Kingdom.

Key Highlights
-Lee Scott succeeds David Glass as Walmart CEO -Walmart is named Retailer of the Year -Walmart operates in 15 countries -Sustainability 360 launches -Site to store is introduced -Helen Walton passes -$4 prescriptions are introduced

Key Figures
-Walmart stock splits 100 percent for the 11th time with a market price of $89.75 in the late 90s -Walmart becomes the largest private employer -Walmart passes $400 billion in net sales by the end of the decade

Key People
Lee Scott
Eduardo Castro-Wright Douglas McMillon

Rob Walton

Mike Duke

Leslie Dach

STORE OF THE COMMUNITY

Walmart introduces the Store of the Community initiative as an exciting model to meet the shopping needs of local store Customers. These stores are specifically tailored to mirror the demographic makeup of local communities. Walmarts computer systems are second largest and innovative in the world, behind the United States government.

PDQS
Suppliers are working more with Walmart to develop PDQ to display goods in stores and become more popular and easier to stock merchandise. PDQs are self-contained displays that eliminate stocking individual merchandise on a shelf or hanger. Walmart transportation now moves over 50 million cases of merchandise a week to stores and clubs.

75

Quote...

If were going to reach new heights at Wal-Mart, we cannot resist change, and we must dedicate ourselves to the continuous improvement of this Company. Always. -David Glass

Most admired companies

FORTUNE
2001 WALMART PULLS AHEAD
While sluggish consumer spending, rising unemployment, the energy crisis, and September 11th all converged to make the year a very challenging time, but Walmart pulls ahead with a 13.8 percent increase in sales at $218 billion making Walmart the largest company in the world, measured by revenue. Walmart has 1.4 million associates. Walmart U.S. operates over 1,647 discount stores, 1,066 Supercenters, 500 Sams Clubs, 31 Neighborhood Markets. Walmart.com becomes the most visited website in the retail industry.

2000s

3RD MOST ADMIRED

Fortune names Walmart the third most admired company in America and one of the best companies to work for in America and ranked fifth globally as most admired. Walmart gives $1.5 million to a variety of charitable organizations within the United States.

New Millennium
Walmart enters the new millennium by expanding the scope of servant leadership-again. As the nation copes with wars in Afghanistan and Iraq, Walmart initiates programs to support our troops overseas and their families at home. And the company continues to grow. In shoppers minds, Walmart becomes the destination of choice for meeting everyday needs. Walmart.com takes its place as one of the Webs most visited sites. The Site-to-Store program, which allows customers to have their online purchases shipped to any Walmart store in the contiguous United States, completes the multi-channel experience.

1,000TH SUPERCENTER OPENS

While many retailers report stagnant or declining sales, cancel their plans for new stores and even file for bankruptcy, Walmart remains strong and invests more in the future of the company by spending nearly $8.3 billion to build new stores. Walmarts 1,000th supercenter opens, in St. Robert, Missouri. Most Walmart Supercenters have approximately 500 associates working in the stores and reach more than $100 million in sales a year.

INTERNATIONAL LEADERSHIP
Walmart launches the program International Leadership Development Program to ensure that an ample pool of operations teams and store managers are prepared to support the growth of Walmart in years to come. The program provides intensive, cross-continental training in Walmart systems, processes, and our culture. Walmart International operates 648 discount stores, 455 Supercenters, 64 Sams Clubs, and 3 Neighborhood Markets.

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The feeling our customers have when they leave our stores determines how soon theyll be back.

Sam Walton

2000s

TOGETHER WE STAND
After the tragic events of 9/11, Walmart communities across America and around the world in the wake of the September 11th tragedy pulled together and formed a joint effort called Together We Stand, raising nearly $16 million for the Victims and their families.

CRITICAL NEED TRUST

Walmart establishes the Associates in Critical Need Trust (ACNT) to help associates who are experiencing financial hardship. More than $2.8 million was raised the first year, assisting more than 2,800 families.

fact...

Wal-Mart Stores, Inc. is committed to strengthening and enhancing the quality of life in the communities where our Customers and Associates live and work. In fiscal 2001, over $190 million was raised and contributed by our Associates and Customers and given back to our local communities. This is an increase of over $32 million, all given back to those who need it most.

2002 ITS A BIG DEAL

Sams Club receives a brand makeover with a new slogan and fresh new colors. The new slogan for Sams Club says, Its a Big Deal! A new 154,000 square foot Club is built in East Plano, Texas and is the second largest Club in the United States. The new club features a much more inviting layout with easy to read signs making the shopping experience much easier for the customer. The club also features internet kiosks that link customers to the Sams Club website.

BIGGEST DAY IN SALES

Walmart experiences record sales of $244.5 billion, a 12.3 percent increase and record earnings of $8 billion. Globally, Walmart now has 2,510 discount stores, 1,496 Supercenters, 596 Sams Clubs, and 86 Neighborhood Markets. Wal-Mart has its biggest single-day sales in history: $1.43 billion on the day after Thanksgiving.

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Store of the Community

The Store of the Community is stocked based on a combination of consumer purchasing data, area demographics, customer preferences and input from our store Associates. Evaluating the buying patterns of Customers enables Wal-Mart buyers to determine what is selling best at each store and purchase merchandise based on each stores data.

2000s

150,000 SKUS
Globally, Walmart now has 2,510 discount stores, 1,496 Supercenters, 596 Sams Clubs, and 86 Neighborhood Markets. Walmart builds 192 more Supercenters. Supercenters now have an incredible assortment of merchandise featuring up to 150,000 different items.

NEW MANAGEMENT
Susan Chambers becomes senior vice president of insurance and benefits. Douglas McMillon becomes executive vice president and chief merchant at Sams Club. Linda Dillman becomes CIO.

Quote...

Mr. Sam said, Our Associates make the difference, and he was absolutely right. In order to continue your Companys growth, we must attract Associates to serve an increasingly diverse customer base. We must continue to recruit and promote from all segments of society and provide a work environment in which individuals can succeed based on their own merits. Lee Scott

INTERNATIONAL ACQUISITIONS
International sales increase by 15 percent to almost $41 billion. Walmart acquires Supermercados Amigo in Puerto Rico. ASDA is now named Britains Best Company to Work For by the Sunday Times. Walmart invests in Seiyu, a retailer in Japan and becomes the majority owner.

SUPPLIER DATA EXCHANGE

Walmart begins exchanging data over the internet with thousands of global suppliers. Walmart develops a variety of new leadership initiatives to better develop leaders and potential international managers. These programs include the Business Leadership Series, People Asset Reviews and other programs to accelerate growth and advancement of associates.

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Rasing the Standard of Living

Around the world,Wal-Mart raises the standard of living by meeting day-to-day needs with affordably priced merchandise. Some shoppers come to Wal-Mart to buy essentials so they will have enough money left over for other important needs. For others, the selection and prices at Wal-Mart simply enable an enjoyable, comfortable lifestyle that doesnt break the bank.

2003

2000s

MOST PHILANTHROPIC
Forbes names Walmart one of the 10 most philanthropic corporations in America. Hispanic Business magazine place Walmart in its Top 25 Diversity Recruitment Programs category, for the companys sterling record of hiring and promoting Latinos. Walmart received the 2002 Ron Brown Award, the highest Presidential Award recognizing outstanding achievement in employee relations and community initiatives.

$4 BILLION IN TAXES
Walmart net sales increase to $256 billion. Walmart pays $4 billion in U.S. federal income taxes, which means that if 446 other taxpayers paid the same amount as Walmart, no other business or individual in the United States would have to pay taxes for the year. Worldwide, Walmarts total square footage increased to 46 million. Walmart sells the McLane Company.

fact...

In 2003,Wal-Mart contributed more than $150 million to support communities and local nonprofit organizations around the world, with local Associates neighbors helping neighbors deciding how the money would be spent in each community.

NEW DIVERSITY OFFICE

Walmart forms and establishes a Diversity Office to better focus efforts on recruiting and promoting all segments of society and provide a work environment where individuals can succeed based on their own merits. Walmart opens 139 new discount stores, Supercenters, and Neighborhood Markets, as well as 130 conversions and relocations from discount stores to Supercenters and also opens 13 Sams Clubs. FORTUNE magazine lists Walmart as Americas Most Admired Company.

WALMART MEXICO FOUNDATION

Walmart Mexico Foundation is established. Walmart builds a second data center in Missouri, ensuring system redundancy and server availability in the event of a disaster.

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Capital isnt scarce; vision is.

Sam Walton

2004

2000s

LARGEST CHARITABLE CORP

Net sales increase to $285 billion. Walmart serves more than 138 million customers each week. Walmart is Americas largest corporate charitable contributor. Over 1.6 million associates are working at Walmart and nearly 76 percent of store management started in hourly positions and were promoted. The company builds 45 new discount stores, 250 Supercenters, 40 new Sams Club, and 30 new Neighborhood Markets, adding 55 million square feet of new retail space.

NEW WALMART U.S. CEO

Eduardo Castro-Wright becomes Executive Vice President and Chief Operating Officer for the Walmart U.S. Division. Formerly, Eduardo was President and CEO of Walmart Mexico. Mike Duke becomes President and Chief Executive Officer of Walmart Stores U.S.

If you love your work, you will be out there every day trying to do it the best you can, and soon everyone around will catch that passion from you- like a fever.

Sam Walton

RETAILER OF THE YEAR

Retailing Today magazine awards Walmart International Retailer of the Year. Walmart International consists of 1,500 stores in the United Kingdom, Germany, Brazil, Argentina, Puerto Rico, Mexico, China, South Korea, and Canada. Over 200 units are added in Mexico, China, Canada, U.K., and Brazil. Walmart acquires Bompreo S.A. Supermercados do Nordeste, a supermarket chain in northern Brazil with 118 hypermarkets.

TECHNOLOGY ADVANCES
Annually, Walmart distribution centers process over five billion cases of merchandise that is sent to stores and clubs. The Walmart fleet has over 7,800 drivers. Walmart data centers track over 680 million SKUs weekly. Walmarts data warehouse storage capacity reaches over 570 terabytes of data, which at the time is larger than all fixed pages on the internet. Walmart tests Radio-Frequency Identification (RFID) in the grocery sections of seven pilot stores. RFID replaces UPC barcodes for product identification and tracking. Walmart has over 68,000 suppliers.

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Information Systems Division

Thanks to over 75,000 associates in Logistics and in our Information Systems Division, Walmart has the firepower behind our retailing strategy that strives to have what the customer wants, when the customer wants it. With the Data Warehouse storage capacity of over 570 terabytes larger than all of the fixed pages on the Internet we have a remarkable level of real-time visibility into our merchandise planning. So much so that when Hurricane Ivan was heading toward the Florida panhandle, we knew that there would be a rise in demand for Kelloggs Strawberry Pop-Tart toaster pastries. Thanks to our associates in the distribution centers and our drivers on the road, merchandise arrived quickly.

2005

2000s

WALMART PATRIOTISM
Walmart and its customers contribute $14.5 million to help build the national World War II Memorial, in Washington D.C. Walmart receives American Veteran magazines Corporate Patriotism Award, which recognizes the companys significant philanthropic support of U.S. military service members and their families.

1.8 MILLION ASSOCIATES

Net sales raise 9.5% to $312 billion. Walmart has 1.8 million associates in over 6,100 stores worldwide. Walmart adds 267 Supercenters, 24 discount stores, and 15 Neighborhood Markets. Mike Duke is now Vice Chairman of Walmart International. Doug McMillon becomes Executive Vice President and CEO of Sams Club.

A Positive Impact

fact...

In November 2005, an independently-certified study by Global Insight detailed the effects Walmart has on communities throughout the U.S. Results indicated we have a positive impact on communities increasing shoppers buying power, creating jobs, stimulating business for existing operations and even revitalizing areas while improving real wages by 0.9%.

CARHCO
Walmart opens stores in Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Walmart purchases 33.3 percent interest in Central American Retail Holding Company (CARHCO). Walmart acquires majority interest in Seiyu. Walmart acquires Sonae, a retail operation in Southern Brazil consisting of 139 hypermarkets. The Walmart Brazil Foundation is established.

NEW MARKETING STRATEGY

Home for the Holidays theme is launched as a new creative marketing program for the holiday season. Walmart debuts its exclusive Metro 7 collection which is a distinct line of womens apparel designed specifically for the fashion savvy customer.

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Quote...

Walmarts marketplace is clearly the world. And we have every reason to be optimistic about our role both for the opportunity it provides our Company to learn and to grow, but also for the opportunity Walmart has to continue to raise the standard of living for people everywhere. -Lee Scott

2000s

HURRICANE KATRINA EFFORTS

Even before disaster struck, the Walmart Emergency Operations team was ensuring storm-readiness supplies and cleanup materials were delivered to our Walmart Stores and Sams Clubs. After the storms passed, we used our vast information systems and in-store technology help customers, associates and the public access information and relief services, as well as search for messages about loved ones. Walmart donation centers were set up at key shelters to provide basic necessities to Louisiana, Mississippi and Texas victims. Vacant Company facilities were used as supply depots, food pantries and shelters. Walmart was often the first relief to arrive at staging sites, command centers and shelters in the devastated areas. The Company provided more than 2,450 truckloads and $3.5 million of merchandise and in-kind donations for the relief effort, provides $14.5 million in cash assistance to more than 20,000 associates, raises $18 million through a corporate drive, and $8.5 million raised in stores by associates and customers.

Katrina Relief
Walmart nationwide announced it would fill prescriptions, free of charge, to evacuees with emergency medicine needs and no money, even if they did not have a copy of their prescription. Walmart offered free check cashing in approximately 126 stores in the hurricane disaster area for an initial two-week period. This included government, payroll and insurance checks and computergenerated checks. More than 150 Internet-ready computers were donated and delivered to shelters to help evacuees and families find each other via the Walmart and Red Cross Web sites.

NEW SUSTAINABILITY
In an enthusiastically received speech, Walmarts CEO, Lee Scott, announces the companys sustainability goals: create zero waste, use only renewable energy, and sell products that sustain the environment. Walmarts sustainability commitment intensifies after the company leads the nationwide corporate drive to assist with hurricane relief efforts.

ACRES FOR AMERICA

Through Acres for America, Walmart committed $35 million over 10 years to conserve at least one acre of wildlife habitat for every acre developed by Wal-Mart. Walmart joins Unilever in introducing super-concentrated liquid laundry soap in small containers, saving 65 million pounds of plastic and cardboard packaging material and 140 million gallons of water every year.

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fact...

We established three sustainability goals that guide our efforts in becoming a more sustainable company.
We are committed to: Being supplied 100 percent by renewable energy Creating zero waste Selling products that sustain people and resources

2000s

8,194 FLIGHT LEGS

In one year, the U.S. Walmart aviation fleet flies a record 8,194 flight legs. Destinations include Argentina, Brazil, Canada, China, Mexico, Puerto Rico, South Korea, and the United Kingdom. Walmart drivers make over 4 million deliveries.

NEW PACKAGING
Wal-Marts packaging team partnered with select private label brand suppliers to improve the packaging on nearly 300 items in its Kid Connection toy line. By making the packaging a little smaller on this one toy line, we used 497 fewer shipping containers and generated freight savings of more than $2.4 million per year. We estimate that more than 3,800 trees and 1,000 barrels of oil were saved.

We swim upstream, and it makes us strong and lean and alert.

Sam Walton

2006 RED KETTLE CAMPAIGN

The Salvation Army raised more than $26 million through its red kettle campaign at our stores and clubs. Wal-Mart is one of the largest cash contributors to U.S. education through local grant programs and scholarships, including Teacher of the Year.

WALMART PULLS OUT

Net Sales increase 11.7 percent to $345 billion. Rollin Ford is named CIO. Operations in South Korea and Germany close. Walmarts international portfolio consists of 46 store banners. 90 percent of associates now have healthcare insurance, and Walmart insures more than 1 million lives.

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fact...

Walmart is not just Walmart around the world. In many places, we operate under different brand names. Walmart does business under 9 different traditional retail formats: supercenters, food and drug stores, general merchandise stores, bodegas (small markets), cash and carry stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants.

2000s

$4 PRESCRIPTIONS
Walmart introduces its $4 generic drug prescription program, which changes the face of pharmaceutical retailing and makes healthcare more affordable and accessible. Walmart redesigns Walmart.com, starts experimenting with Web 2.0 and social networking tools and contracts with Oracle and Hewlett Packard to use their price optimization and business intelligence in retail applications.

SATELLITE TRACKING
To ensure greater supply chain visibility, satellite-based tracking technology is being installed in the Companys entire fleet of over-the-road trailers. The data generated by the system increases productivity, reduces costs and enhances security. Construction of an exciting Innovation Lab is under way. This center will showcase leading-edge technology and demonstrate how it can lead to future products, as well as better ways to serve our shoppers.

$4 Prescriptions
Walmarts $4 Prescription Program lets you choose from hundreds of generic drugs and over-the-counter medications that are just $4 for a 30-day supply or $10 for a 90-day supply. You can save money at Walmart on these low-cost medications, but you also will get the service you expect with professional pharmacists, automatic refills and convenient Home Delivery options.

AN INNOVATIVEREMIX
What happens when two distribution networks swap inventory? Plenty when they are Walmarts Grocery Distribution Center Network and Walmarts Regional General Merchandise Distribution Center Network. Each was once a specialist the Grocery Network handling dry grocery goods, such as cereals and snacks, and the Regional Network moving primarily general merchandise, such as household cleaners, paper towels, toys and electronics. In 2006, that changed when approximately 4,000 items switched networks. Now, high-velocity items grocery and general merchandise are combined and sent to the stores from the High Velocity Distribution Centers. This innovative Remix means items needed most by customers arrive at the store on one truck, so they can be unloaded and moved faster to the shelves. We also can reduce the number of additional regional distribution centers well need in our network going forward. Stores get improved merchandise flow and in-stock, while Walmart reduces its capital spending needs.

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Quote...

Wal-Mart can be and in many cases, already is part of the solution to some of the most complex challenges in the world today. Just like our U.S. stores, our international stores help working families stretch their incomes and afford daily needs like fresh foods and quality school clothes. -Lee Scott

2000s

DAYLIGHT HARVESTING
One of the truly innovative energy conservation ideas that has long been applied by Walmarts Real Estate group is a sophisticated daylight harvesting system. Each stores system relies on hundreds of rooftop skylights connected to sensors and state-of-the-art control technology. Sales floor lighting changes, based on the available natural light streaming through the skylights during the day. Today, 90 percent of all newly constructed U.S. Walmart facilities include this energy-saving technology.

SUPPLIER SCORECARD
On November 1, 2006, Wal-Mart introduced a scorecard that evaluates Wal-Mart and Sams Club suppliers on their progress toward developing more sustainable packaging, and helps track the companys progress to reduce packaging in its supply chain by 5 percent by 2013. Walmart sells over 137 million compact florescent light bulbs (CFLs), which use 75 percent less energy than incandescent.

Packaging Scorecard
Wal-Marts packaging scorecard is a measurement tool that allows suppliers to evaluate themselves relative to other suppliers, based on specific metrics. The metrics in the scorecard evolved from a list of favorable attributes announced earlier this year, known as the 7 Rs of Packaging: Remove, Reduce, Reuse, Recycle, Renew, Revenue, and Read.

HIGH TECH FREEZERS

Additionally, Wal-Mart freezer cases now are applying industry-unique technology in several countries. Motionactivated Light-Emitting Diode (LED) lighting turns itself off and on as customers approach.

POWER OF PROMISE
Walmart receives the Susan G. Komen Breast Cancer Foundation Gaye Cypert Power of a Promise Award for supporting breast-cancer research. Through the Walmart Foundation, charitable partners and donations from customers and associates, Walmart contributed more than $415 million in cash and in-kind merchandise to 100,000 organizations worldwide. More than one million hours are volunteered in the United States and more than $115 million is raised from customers and associates for contributions.

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Quote...

Leadership at Wal-Mart happens throughout the organization, from accounting to merchandising. Nowhere, however, is it more important than in the aisles and at the registers of our stores. That is where our associates determine whether we succeed or fail. -Rob Walton

2007

2000s

HELEN WALTON PASSES

Walmart net sales increase 8.6 percent to $374.5 billion. Walmart is the first of any retailer to exceed $100 billion in sales in a quarter. Helen Walton, the first lady of Walmart passes away, on April 13, 2007.

WALMEX OPENS
The first Walmex bank opens in Mexico. The 3,000th international store, a Supercenter in Sao Paulo, Brazil. Walmart and Bharti Enterprises announced an agreement to establish Bharti Walmart Private Limited, a joint venture for wholesale cash-and-carry and back-end supply chain management operations in India. Walmart adds 101 locations in China through the TrustMart transaction. In Japan, in June 2007, as part of its Hummingbird Campaign, Seiyu began selling reusable bags that are replaced for free if they break.

WALMART LOGO HISTORY

1962 - 1964

1964-1981

1968-1981

SAVE MONEY. LIVE BETTER.

Walmart initially begins its Saving people money so they can live better marketing campaign as its new mission statement around the world. Walmart opens 191 new Supercenters. Globally, Walmart now has over 7,000 stores.

SUSTAINABILITY 360
Sustainability 360 is a campaign Walmart launches that sells 145 million energy efficient light bulbs, enough to eliminate the need for nearly three new coal-fired power plants in the United States. Wal-Marts new reusable bags, introduced last year, help reduce the number of plastic bags that might end up in landfills. The Company also supports programs to recycle the millions of plastic bags used every day.

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Control your expenses better than your competition. This is where you can always find the competitive advantage.

Sam Walton

2000s

PSP
Walmart introduced Personal Sustainability Projects (PSP) to all U.S. associates. The voluntary program is focused on helping associates integrate sustainability into their daily lives, and more than 500,000 associates report that they have adopted a PSP. The company launches a pilot program to cut emissions in certain categories. As a result of this program, DVD suppliers eliminated more than 28,000 metric tons of GHG in 2009.

SITE TO STORE
Wal-Mart launches Site to Store service, enabling online customers to pick up merchandise in stores. Walmart saves customers more than $110 million in shipping fees with Site to Store.

fact...

A majority of our markets have Stores of Learning where associates participate in classroom lectures along with in-store training. The Companys efforts have been recognized in several countries, where we have been honored as the best place to work.

2008 MIKE DUKE

Walmart net sales increase 7.2 percent to $401.2 billion. Mike Duke becomes Chief Executive Officer of Walmart Stores Inc. Douglas McMillon becomes Chief Executive Officer of Walmart International. Brian Cornell becomes President and CEO of Sams Club. Walmart has more than 3,600 stores with plans to update 700 to improve customer experience and drive sales. Walmart creates 63,000 more jobs worldwide that offer competitive wages and benefits.

CUSTOMER SURVEY
Walmart surveys hundreds of thousands of customers monthly, asking them to rate their shopping experience. As prices continue to rise and consumers search for affordable ways to sustain the transitional economy, nearly 80 percent of U.S. households are shopping at Wal-Mart. Walmart expands its shipping program by adding Site to Store Express, which ships eligible orders to a Walmart store in just 3 to 5 business days, providing a faster delivery option to expedite orders.

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Quote...

At Walmart, we wont sit back and say, Thats someone elses job. We have a role to play. -Mike Duke `

2000s

WALMART ENTERS CHILE

Seiyu becomes a wholly owned Walmart subsidiary in June. A regional office opens in Hong Kong to facilitate longterm opportunities in Asia. Walmart enters Chile through the acquisition of Distribuicon y Servicio (D&S), Chiles largest food retailer. Throughout our operations, Wal-Mart continues to strengthen local agricultural sourcing programs by buying more from farmers located close to our stores. By 2011, our China stores expect to buy from more than one million farmers in that country.

LOVE EARTH
Logistics teams save almost $200 million through productivity and fuel-efficiency programs. Walmart commits to reducing its global plastic shoppingbag waste by an average of 33 percent per store by 2013. In July 2008, Walmart launched Love, Earth jewelry, its first completely traceable fine jewelry line.

Quote...

We are remodeling our stores, making them easier to shop, and leveraging technology to ensure increased operational efficiencies. The initial customer response to our Project Impact store remodeling plan has been positive. -Eduardo Castro-Wright

PROJECT IMPACT
Walmart begins remodeling stores, introducing a fresh, new branded look under the code name Project Impact. The new Walmart logo is launched. Walmart gives $423 million in cash and in-kind gifts in the communities we served last year, an increase of approximately $86 million from the prior year.

SAMS CLUBS 25TH

Sams Club celebrates its 25th anniversary. Sams Club operates more than 590 locations nationwide and more than 100 locations internationally.

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Project Impact
Walmart gets a facelift
New stores feature wider aisles and a fresh clean apperance with a bright color palette to add an exciting shopping experience for our customers.

2009

2000s

FAST, CLEAN, FRIENDLY

Walmart net sales increase 1 percent to $405 billion. The company now has more than 8,400 stores in 15 countries with over 2 million customers each week. Achieved record customer experience scores for the year, reflecting increased traffic and higher fast, friendly, clean scores. The company announces nearly $1 billion in bonuses for full and part-time hourly associates and an additional $780 million in profit-sharing, 401k contributions. Walmart supports organizations worldwide with $624 million in charitable contributions.

$100 BILLION INTERNATIONAL

Walmart adds more than 21 million square feet of retail space internationally. Walmart adds more than 500 units internationally. Walmart International achieves net sales of $100 billion.

Fast, clean, friendly... its our promise to our customers.

E-VALUES
Sams Club starts its eValues program to strengthen relationships with members and offer more value to the shopping experience. More than 70% of the fuel we sell at Sams Club locations contains renewable fuel components. Walmart Optical Labs produced more than 5 million pairs of eyeglasses.

THE BRIGHT SPOT

In April 2009, USA Today called Walmart the bright spot in the renewable energy market after the company announced it would double the size of its solar-power initiative by placing rooftop solar arrays on 10 to 20 stores and distribution centers in California. Wal-Marts solar projects will generate enough clean energy to power the equivalent of 2,600 homes and avoid 22,500 metric tons of carbon-dioxide emissions each yearwhich is comparable to taking about 4,000 cars off the road. Walmart commits to reducing phosphates in all detergents carried in its stores throughout the Americas by 20 percent by 2011.

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The folks on the front lines - the ones who actually talk to the customer - are the only ones who really know whats going on out there.

Sam Walton

2000s

MODERN LOGISTICS
Walmart Logistics has approximately 85,000 associates in 147 distribution centers. The Walmart Fleet consists of 7,200 tractors, 53,000 trailers and 7,950 drivers. An average facility will serve 75-100 stores, many with a unique merchandise assortment for each specific store, within a 250 mile radius.

5.5 BILLION CASES

A Walmart grocery distribution center is equipped to house up to four million bananas at one time. Ice cream freezers at a grocery DC are cooled to -20 degrees Fahrenheit. A regional distribution center can have twelve miles of conveyor belts, which can move hundreds of thousands of cases through the center each day. Last year, we moved more than 5.5 billion cases of merchandise. Walmart commits to reducing 20 million metric tons of greenhouse gas emissions in the supply chain by the end of 2015.

Quote...

We have worked especially hard on the social aspects of sustainability. We know we can play such a positive role in communities around the world. And if we are going to be at our best as a business, we have to recruit, develop and retain the best people and leaders.

Mike Duke

FLEET EFFICIENCY IMPROVES

Walmart Transportation announces that it has surpassed is goal to improve fleet efficiency. Collectively, Walmarts fleet drivers log approximately 800 million miles per year. The average Walmart truck driver logs more than 100,000 miles annually the equivalent of about four trips around the world! Walmarts private fleet is one of Americas safest fleets with 2.2 million miles per preventable accident. Walmart is currently testing several different biodiesel blends in our private truck fleet, and is committed to finding consistent, high-quality products that meet our requirements.

DISASTER D.C.
Walmart has nine disaster distribution centers strategically located across the country stocked with relief supplies needed to assist communities recover in the event of a disaster.

105

Walmart U.S. continues to drive toward its goal of doubling fleet efficiency, realizing a 65 percent improvement in 2010 over our 2005 baseline. Over the past two years, we replaced nearly two-thirds of our fleet with more efficient tractors. Our investments also included the purchase of 3,000 skirted trailers, which will drive fleet efficiency. In 2010, we delivered 57 million more cases, while driving 49 million fewer miles. This equates to avoiding almost 40,000 metric tons of CO2 emissions, which is the equivalent of taking 7,600 cars off the road.

2010

2000s

$419 BILLION
Walmart reaches $419 billion in net sales. Bill Simon becomes Walmart U.S. Chief Executive Officer. Walmart now has over 8,970 stores in 15 countries. Walmart stores span over 617 million square feet of retail space. Sams Club offers free WiFi in all of its clubs and also offers free monthly health screenings for members.

OUR ASSOCIATES
Walmart employs more than 2.1 million associates worldwide, including more than 1.4 million in the United States. Walmart is not only one of the largest private employers in the U.S., but the largest in Mexico and one of the largest in Canada as well. The majority of our associates work full-time. Many of our associates are senior citizens who need supplemental income or students who want work experience.

fact...

To call Walmarts stock performance phenomenal would be an understatement. At this point in time, if a person bought 100 shares of company stock at $1,650 when the company went public in 1970, 40 years later, their shares would have grown to 204,800 shares, worth more than $10 million.

INTERNATIONAL GROWTH
Walmart International continues aggressive growth, adding sales in both emerging and mature markets. Net sales for fiscal 2011 grew 12 percent to $109 billion. Operating income increased to more than $5.6 billion, supported by more than 4,500 locations and almost 287 million square feet of selling space. Walmart acquires 193 Netto Foodstores in the United Kingdom. Walmart acquires interest in Massmart. Massmart operates 288 unites in South Africa.

GLOBAL SUSTAINABILITY
In Central America, Walmart gives away approximately 13,000 reusable bags each year. In Costa Rica, it has worked with vendors to ensure the large bags of rice and sugar are made with recyclable materials and handles, so once the customers consumes the product, they have a free reusable bag.

107

Walmart On Campus
The smallest Walmart in the world begins construction on the University of Arkansas campus in Fayetteville, Arkansas in December. The 3,500 square foot store features a fullservice pharmacy and general merchandise.

2000s

PICK UP TODAY
Walmart introduces Pick Up Today, an innovative tool for customers to use when shopping Walmart.com and picking the item up directly from the store.

DIVERSITY
Walmart is a diverse employer with more than 257,000 African-American associates; more than 41,000 Asian and 5,900 Pacific Islander associates; more than 171,000 Hispanic associates; more than 16,000 American Indian and Alaskan Native associates; more than 869,000 women; and more than 430,000 mature associates who are 50 and older.

Unbeatable Prices
Our customers expect no less. They look for our Rollback signs, knowing were passing on even greater savings. They count on unbeatable prices on the most popular brands. They enjoy lower opening price points from us - no matter where else they might shop.

And were determined to keep them that way. How?

> By watching competitors prices weekly > By working closely with our suppliers > By matching our competitors lowest prices > By making our unbeatable prices promise

THE CLINIC AT WALMART

The Clinic at Walmart is staffed by licensed health care professionals who diagnose, treat, and prescribe medications, in compliance with federal and state regulations. These clinics are open for walk-in service seven days a week, including evenings and weekends, and treat patients age 18 months and older.

WALMART EXPRESS
Walmart Express is introduced as a new format for urban and rural markets that will be less than 30,000 square feet and will sell grocery, pharmacy and limited general merchandise.

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Smaller Formats
Walmart Express
Walmart Express has been created to offer low prices every day in a smaller format store that provides convenient access for fill-in and stock-up shopping trips. The stores give Walmart flexibility in serving customers, especially in rural and urban areas where shoppers may not have access to larger stores.

Neighborhood Market
Walmart Neighborhood Markets offer a quick and convenient shopping experience for customers who need groceries, pharmaceuticals, and general merchandise all at our famous Every Day Low Prices.

EXECUTIVE OFFICERS
CEO: CHIEF EXECUTIVE OFFICER CFO: CHIEF FINANCIAL OFFICER CIO: CHIEF INFORMAITON OFFICER

TITLE
CHAIRMAN OF THE BOARD OF DIRECTORS

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

S. ROBSON WALTON H. LEE SCOTT THOMAS COUGHLIN JOHN MENZER THOMAS GRIMM
DONALD SODERQUIST

CEO
PRESIDENT WALMART STORES INC.

MICHAEL DUKE
EDUARDO CASTRO-WRIGHT
BILL SIMON

CEO WALMART U.S.

VICE PRESIDENT WALMART STORES INC.

MICHAEL DUKE

HIGHLIGHTS

CEO WALMART INTERNATIONAL

VICE PRESIDENT WALMART STORES INC.

MICHAEL DUKE
DOUGLAS MCMILLON
MICHAEL DUKE JOHN MENZER

DOUGLAS MCMILLON BRIAN CORNELL

EDUARDO CASTRO-WRIGHT

CEO SAMS CLUB

VICE PRESIDENT WALMART STORES INC.

KEVIN TURNER

VICE CHAIRMAN

THOMAS COUGHLIN THOMAS SCHOEWE PAUL CARTER COLEMAN PETERSON THOMAS HYDE THOMAS HYDE
LAWRENCE JACKSON

CFO
VICE PRESIDENT WALMART STORES INC.

PRESIDENT
WALMART REALTY

ERIC ZORN SUSAN CHAMBERS LESLIE DACH

PEOPLE DIVISION
VICE PRESIDENT WALMART STORES INC.

CORPORATE AFFAIRS
VICE PRESIDENT WALMART STORES INC.

GENERAL COUNSEL / CORPORATE SECRETARY

VICE PRESIDENT WALMART STORES INC.

SENIOR VICE PRESIDENT

JOSEPH FITZSIMMONS
60

JOSEPH FITZSIMMONS CHARLES HOLLEY

STEVEN WHALEY

Stock Price HISTORY

50

40

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

DECADE ENDING DATA

500 400

Net Sales
(In Billions)

300 200 100 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Total Stores

8000 7000 6000 5000 4000 3000 2000 1000 0

111
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

2.5 2.0

Total Associates
(In Millions)

1.5 1.0 0.5 0.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

You are on the front lines. You are the ones who serve the Next Generation Customer. You see how they react in realtime way before insights and sales data make it down to Bentonville. You know better than anyone what works, what doesnt and how to get better. We need you to lead the way. And I know you will. No one will serve the Next Generation Customer with more passion and greater purpose than Walmart associates. No one will be more committed to exceeding their expectations than you. Mike Duke

2010s

and beyond...

TODAY...
Today, Walmarts global mission is saving people money so they can live better.
Saving people money to help them live better was the goal that Sam Walton envisioned when he opened the doors to the first Walmart. Its the focus that underlies everything we do at Walmart. And for the millions of customers who shop in our stores and clubs around the world each week, it means a lot. Walmarts overall impact on the retail industry and beyond has changed the way business is conducted globally, and increased consumer benefits regardless of where they shop.

Net Sales: $419 billion

Store Count: 8,970

Total Associates: 2.1 million

Our financial Priorities

GROWTH
Walmart is continuing to grow around the world. We have many opportunities to grow by opening new stores, entering new markets, making acquisitions, integrating online channels, and developing new, innovative formats to allow people to experience the Walmart brand.

LEVERAGE
Walmart is leveraging our scale and best practices to create competitive advantages. We also remain committed to leveraging operating expenses and finding additional ways to benefit from our global expertise, talented associates and company scale.

RETURNS
Walmart has a rich heritage of delivering strong shareholder returns. Each operating segment is focused on contributing to consistent, strong company returns.

Our Key Operating Principles...

CUSTOMER LED MERCHANT DRIVEN TALENT EDLP EDLC SOCIAL ISSUES INNOVATION SENSE OF URGENCY GLOBAL LEVERAGE PROFITABLE GROWTH
The customer is the boss. Help them achieve their dreams.

Deliver a wide assortment at the lowest price possible.

Build a diverse workforce and an inclusive enviroment. Listen to assoicates. Act on their ideas.

Its Walmarts business philosophy. Sell brands for less. Dont be undersold.

Its the enabler of EDLP. Keep prices low, control cost, and cut waste.

Lead and stand for whats right. Inclusive growth is good business.

Drive change. Invent new ways to serve customers and win their loyalty.

Have an ownership mentailty. Operate with the speed needed to beat competitors.

Leverage Walmarts global size, scale, and knowledge. Use that knowledge to drive positive change.

Grow the company for shareholders, and share profits with associates.

International

ARGENTINA
OVERVIEW
The president and CEO of Walmart Argentina is Ezequiel Gmez Berard. Headquarters is located in Buenos Aires. Walmart Argentina began in August 1995 with a Sams Club in Avellaneda, near Buenos Aires. The first Supercenter opened nearby a few months later. In October 2007, we announced the acquisition of three Auchan stores in Argentina, and as a result, weve converted stores in La Tablada, Quilmes and Avellaneda into Walmart Supercenters.

BOTSWANA
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. Botswana has two retail chains, GAME Stores and CBW stores. Game is a discount retailer of general merchandise and non-perishable groceries for home, leisure and business use, operating throughout South Africa and in twelve major cities in sub-Saharan Africa. A Builders Warehouse stores was also opened in September 2011, featuring home improvement merchandise.

BRAZIL
OVERVIEW
The president and CEO of Walmart Brazil is Marcos Samaha. Our headquarters are located in Sao Paulo. In 1995, Walmart opened two Supercenters and three Sams Clubs in Brazil. Many more have opened since, including Todo Dia stores, a neighborhood format designed for our Brazilian customers.

CANADA
OVERVIEW
The president and CEO of Walmart Canada is Shelley Broader. Our headquarters are located in Mississauga, Ontario. Walmart Canada began in 1994 with the acquisition of the Woolco Canada chain of 122 stores.

CHINA
OVERVIEW
We began our retail operations in China in 1996 with a Supercenter and Sams Club in Shenzhen. Neighborhood Markets soon followed, and in February 2007, Walmart China invested in the hypermarket chain Trust-Mart, which operates more than 100 retail units. Our headquarters are located in Shenzhen.

CHILE
OVERVIEW
We acquired a majority stake in Distribucin y Servicio D&S S.A., Chiles leading food retailer, in January 2009. D&S began as a family-owned operation led by Manuel Ibez Ojeda in 1957 with its first supermarket, Almac. The president and CEO of D&S is Enrique Ostale. With headquarters in Santiago, D&S has more than 34,500 associates and operates under a number of different formats, including hypermarkets Hiper de LIDER, supermarkets Express de LIDER, Super Bodega Acuenta and Ekono convenience stores.

COSTA RICA
OVERVIEW
In September of 2005, Walmart acquired more than a 33 percent interest in Central American Retail Holding Company (CARHCO) from the Dutch retailer Royal Ahold NV. In March 2006, we increased our interest to 51 percent and the CARHCO name became Walmart Centroamrica. We are the regions largest retailer, with stores in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. In December 2009, Walmart Mexico announced the acquisition of Walmarts operations in Central America from Walmart Stores and two minority partners. In early 2010, the transaction was completed and Walmart Mxico became Walmart Mxico and Central America. Our Centroamrica headquarters are located in San Jose, Costa Rica.

STORES
Supercentre Discount Store 150 179

STORES
Walmart Supercenter Sams Club Todo Dia HyperMarket SuperMarket Magazine (Bompreco) Mercadorama (Sonae) BIG (Sonae) Maxxi Atacado (Sonae) Nacional (Sonae) 49 25 142 36 63 1 21 36 54 69

STORES
Walmart Supercenter Sams Club Neighborhood Market Smart Choice Compact Hypermarket Trust-Mart Hypermarket 235 6 2 3 2 104

STORES
Walmart Supercenter Changomas Changomas Express Mi Changomas 28 27 7 5

STORES
GAME CBW Builders Warehouse 2 8 1

STORES
Lider Hiper Lider Express Acuenta Econo Revive El Buen Corte 68 54 46 129 1 1

STORES
Maxi Pali Mas X Menos Walmart Supercenter Pali 17 25 6 146

Weve created stores with different styles and formats to fit in with local customer needs, desires, and customs. More than 90 percent of our international stores operate under a different banner than Walmart. But, whether were Pali in Costa Rica, Todo Dia in Brazil, or Despensa Familiar in Central America, all of our stores share a common goal: Save people money, so they can live better. Today, Walmart International is a fast-growing part of Walmart's overall operations, with 5,366 stores and approximately 740,000 associates in 27 countries outside the continental U.S.

EL SALVADOR
OVERVIEW
In September of 2005, Walmart acquired more than a 33 percent interest in Central American Retail Holding Company (CARHCO) from the Dutch retailer Royal Ahold NV. In March 2006, we increased our interest to 51 percent and the CARHCO name became Walmart Centroamrica. We are the regions largest retailer, with stores in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. In December 2009, Walmart Mexico announced the acquisition of Walmarts operations in Central America from Walmart Stores and two minority partners. In early 2010, the transaction was completed and Walmart Mxico became Walmart Mxico and Central America. Our Centroamrica headquarters are located in San Jose, Costa Rica.

GHANA
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. Game is a discount retailer of general merchandise and nonperishable groceries for home, leisure and business use, operating throughout South Africa and in twelve major cities in subSaharan Africa.

GUATEMALA
OVERVIEW
In September of 2005, Walmart acquired more than a 33 percent interest in Central American Retail Holding Company (CARHCO) from the Dutch retailer Royal Ahold NV. In March 2006, we increased our interest to 51 percent and the CARHCO name became Walmart Centroamrica. We are the regions largest retailer, with stores in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. In December 2009, Walmart Mexico announced the acquisition of Walmarts operations in Central America from Walmart Stores and two minority partners. In early 2010, the transaction was completed and Walmart Mxico became Walmart Mxico and Central America. Our Centroamrica headquarters are located in San Jose, Costa Rica.

HONDURAS
OVERVIEW
In September of 2005, Walmart acquired more than a 33 percent interest in Central American Retail Holding Company (CARHCO) from the Dutch retailer Royal Ahold NV. In March 2006, we increased our interest to 51 percent and the CARHCO name became Walmart Centroamrica. We are the regions largest retailer, with stores in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. In December 2009, Walmart Mexico announced the acquisition of Walmarts operations in Central America from Walmart Stores and two minority partners. In early 2010, the transaction was completed and Walmart Mxico became Walmart Mxico and Central America. Our Centroamrica headquarters are located in San Jose, Costa Rica.

INDIA
OVERVIEW
In August 2007, Walmart announced an agreement with Bharti Enterprises to establish a joint venture, Bharti Walmart Private Limited, for wholesale cashand-carry and back-end supply chain management operations in India. Our first BestPrice Modern Wholesale opened in May 2009.The president and CEO of Walmart India is Raj Jain.

JAPAN
OVERVIEW
In May of 2002, Walmart acquired a 6.1 percent stake in Seiyu. In December 2005, we acquired a majority interest in Seiyu, making Seiyu a Walmart subsidiary, and in December 2007, we increased our ownership stake of Seiyu from 50.9 percent to 95.1 percent. After acquiring the remaining shares, Seiyu became a wholly owned subsidiary in June 2008. The president and CEO of Seiyu is Steve Dacus. Seiyus headquarters are located in Tokyo.

LESOTHO
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies.

STORES
CBW 1

STORES
Game 1

STORES
BestPrice Modern Wholesale 9

STORES
Hypermarket (GMS) Supermarket Compact Hypermarket Wakana General Merchandise Trust-Mart Hypermarket 88 253 27 46 1 104

STORES
Despensa Familiar 50 La Despensa de Don Juan Walmart Supercenter 25 2

STORES
Paiz Walmart Supercenter Despensa Familiar ClubCo Maxi Despensa 30 7 131 2 18

STORES
Paiz Walmart Supercenter Dispensa Familiar Maxi Despensa 7 1 48 6

International

MALAWI
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. Game is a discount retailer of general merchandise and nonperishable groceries for home, leisure and business use, operating throughout South Africa and in twelve major cities in subSaharan Africa.

MAURITIUS
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. Game is a discount retailer of general merchandise and nonperishable groceries for home, leisure and business use, operating throughout South Africa and in twelve major cities in subSaharan Africa.

MEXICO
OVERVIEW
In 1991, we entered into a joint venture with Cifra to open a Sams Club in Mexico City, making Mexico the first country in Walmarts International division. In 1997, we acquired a majority of Cifra, and in February 2000, the Cifra name officially changed to Walmart de Mxico (WALMEX). In December 2009, Walmart Mexico announced the acquisition of Walmarts operations in Central America from Walmart Stores and two minority partners. In early 2010, the transaction was completed and Walmart Mxico became Walmart Mxico and Central America. The president and CEO of Walmart de Mxico and Central America is Scot Rank. Our headquarters are located in Mexico City.

MOZAMBIQUE
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. Game is a discount retailer of general merchandise and nonperishable groceries for home, leisure and business use, operating throughout South Africa and in twelve major cities in subSaharan Africa. CBWs new format stores are geared to compete with formal retail structures by offering value to wholesale customers and convenience to retail shoppers.

NAMIBIA
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. Game is a discount retailer of general merchandise and nonperishable groceries for home, leisure and business use, operating throughout South Africa and in twelve major cities in subSaharan Africa. CBWs new format stores are geared to compete with formal retail structures by offering value to wholesale customers and convenience to retail shoppers.

NICARAGUA
OVERVIEW
In September of 2005, Walmart acquired more than a 33 percent interest in Central American Retail Holding Company (CARHCO) from the Dutch retailer Royal Ahold NV. In March 2006, we increased our interest to 51 percent and the CARHCO name became Walmart Centroamrica. We are the regions largest retailer, with stores in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. In December 2009, Walmart Mexico announced the acquisition of Walmarts operations in Central America from Walmart Stores and two minority partners. In early 2010, the transaction was completed and Walmart Mxico became Walmart Mxico and Central America. Our Centroamrica headquarters are located in San Jose, Costa Rica.

NIGERIA
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. Game is a discount retailer of general merchandise and nonperishable groceries for home, leisure and business use, operating throughout South Africa and in twelve major cities in subSaharan Africa.

STORES
Game 1

STORES
Game 1

STORES
Game 1

STORES
Game CBW Kawena

STORES

1 1 5

STORES
Game CBW

2 1

Supercenter Sams Club Bodega Aurrera Mi Bodega Aurrera Bodega Aurrera Express Superama Suburbia VIPS Restaurants Farmacia Walmart

201 121 364 205 506 79 91 364 1

STORES
Pali La Unin Maxi Pali

58 8 1

SOUTH AFRICA
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies.

SWAZILAND
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. CBWs new format stores are geared to compete with formal retail structures by offering value to wholesale customers and convenience to retail shoppers.

TANZANIA
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. Game is a discount retailer of general merchandise and nonperishable groceries for home, leisure and business use, operating throughout South Africa and in twelve major cities in subSaharan Africa.

UGANDA
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. Game is a discount retailer of general merchandise and nonperishable groceries for home, leisure and business use, operating throughout South Africa and in twelve major cities in subSaharan Africa.

UNITED KINGDOM
OVERVIEW
Asda traces its roots back to two Yorkshire brothers, Peter and Fred Asquith, and a group of Yorkshire farmers who formed Hindells Dairies in northern England in the 1920s. In 1965, Asquith and Hindells Dairies joined forces to form Asda. In June 1999, Asda was acquired by Walmart and has grown into Britains second largest supermarket. The president and CEO of Asda is Andy Clarke. Our headquarters are located in Leeds.

ZAMBIA
OVERVIEW
In June 2011, Walmart acquired a majority stake in Massmart Holdings Limited, the leading African retailer of general merchandise, home improvement equipment and supplies. Game is a discount retailer of general merchandise and nonperishable groceries for home, leisure and business use, operating throughout South Africa and in twelve major cities in subSaharan Africa.

STORES
Total stores

288

STORES
CBW 1

STORES
Game 1

STORES
Game 1

STORES
Supercenter ASDA - Compact Hypermarket ASDA Living ASDA Supermarket Netto - Supermarket 29 306 27 139 41

STORES
Game 1

SAMS

10 RULES
of building a better business ...

COMMIT
Commit to your business.
Believe in it more than anybody else. I think I overcame every single one of my personal shortcomings by the sheer passion I brought to my work. I don't know if you're born with this kind of passion, or if you can learn it. But I do know you need it. If you love your work, you'll be out there every day trying to do it the best you possibly can, and pretty soon everybody around will catch the passion from you like a fever.

SHARE

Share your profits with all your associates, and treat them as partners.
In turn, they will treat you as a partner, and together you will all perform beyond your wildest expectations. Remain a corporation and retain control if you like, but behave as a servant leader in your partnership. Encourage your associates to hold a stake in the company. Offer discounted stock, and grant them stock for their retirement. Its the single best thing we ever did.

MOTIVATE
Motivate your partners.
Money and ownership alone arent enough. Constantly, day by day, think of new and more interesting ways to motivate and challenge your partners. Set high goals, encourage competition, and then keep score. Make bets with outrageous payoffs. If things get stale, cross-pollinate; have managers switch jobs with one another to stay challenged. Keep everybody guessing as to what your next trick is going to be. Dont become too predictable.

COMMUNICATE
Communicate everything you possibly can.
The more they know, the more theyll understand. The more they understand, the more theyll care. Once they care, theres no stopping them. If you dont trust your associates to know whats going on, theyll know you really dont consider them partners. Information is power, and the gain you get from empowering your associates more than offsets the risk of informing your competitors.

APPRECIATE

Appreciate everything your associates do for the business.

A paycheck and a stock option will buy one kind of loyalty. But all of us like to be told how much somebody appreciates what we do for them. We like to hear it often, and especially when we have done something were really proud of. Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. Theyre absolutely free and worth a fortune.

CELEBRATE
Celebrate your success.
Find some humor in your failures. Dont take yourself so seriously. Loosen up, and everybody around you will loosen up. Have fun. Show enthusiasm always. When all else fails, put on a costume and sing a silly song. Then make everybody else sing with you. Dont do a hula on Wall Street. Its been done. Think up your own stunt. All of this is more important, and more fun, than you think, and it really fools competition. Why should we take those cornballs at Walmart seriously?

LISTEN

Listen to everyone in your company and figure out ways to get them talking.
The folks on the front lines the ones who actually talk to the customer are the only ones who really know whats going on out there. Youd better find out what they know. This really is what total quality is all about. To push responsibility down in your organization, and to force good ideas to bubble up within it, you must listen to what your associates are trying to tell you.

EXCEED

Exceed your customers expectations.

If you do, theyll come back over and over. Give them what they want and a little more. Let them know you appreciate them. Make good on all your mistakes, and dont make excuses apologize. Stand behind everything you do. The two most important words I ever wrote were on that first Walmart sign: Satisfaction Guaranteed. Theyre still up there, and they have made all the difference.

CONTROL

Control your expenses better than your competition.

This is where you can always find the competitive advantage. For twenty-five years running long before Walmart was known as the nations largest retailer weve ranked No. 1 in our industry for the lowest ratio of expenses to sales. You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if youre too inefficient.

10

SWIM UPSTREAM
Challenge the status quo.
Go the other way. Ignore the conventional wisdom. If everybody else is doing it one way, theres a good chance you can find your niche by going in exactly the opposite direction. But be prepared for a lot of folks to wave you down and tell you youre headed the wrong way. I guess in all my years, what I heard more often than anything was: a town of less than 50,000 population cannot support a discount store for very long.

This book is just a glimpse of the historical impact Walmart has created for our customers, our associates, and for the rest of the world. Sam Waltons vision was to build a business that would help ensure the customers that walked in the store would leave happy, and leave proud knowing they saved money by shopping at Walmart. We are allowing our customers to build confidence in themselves. As we live in a world where the economic environment is constantly changing, and in a world that rapidly evolves, rises a company that revolutionizes with it. Walmart has never been better positioned to do this and with the magnificent growth the company has seen over the past 50 years, our associates are the driving force behind the next generation Walmart, and we are most certainly proud of it.

Designed by Brandon Evano

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