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“ My Dad created Wal-Mart to help people

save money so they can have a better life.


This mission remains as relevant now as it
was in 1962.”
Sam Walton, Founder Rob Walton, (Chairman of the Board)
WAL*MART

$ The world’s largest public corporation by


revenue
$ The largest private employer in the
world
$ The largest grocery retailer in the
USA
$ The largest toy seller in
America
$ Each year 93% of the
American households do
shopping in some Wal-Mart
store at least once
$ In 2006 around 7,2 billions of
people will enter some of the Wal-
Mart stores
Introduction
Wal-Mart is a global retail organization, in
the business of serving customers. In the
United States, their operations are centered
operating retail stores and membership
warehouse clubs. International, they are
centered on retail stores, warehouse clubs
and restaurants. Their business is to offer
customers quality merchandise at low
prices. Wal-Mart mission is to be the place
where prices are low and value and
customer service are high everyday.
BOARD OF DIRECTORS

Co-Founders Sam
and Bud Walton

H. Lee Scott, Jr.


Chairman of the Michael T. Duke
Executive President and Chief
Committee Executive Officer
S. Robson Walton of the Board of
Chairman of Board of Directors
Directors
History of Wal-Mart
The company’s founder is Sam Walton.
He was born in 1918 at Oklahoma.
In 1940,he worked for the famous retailer,JC
Penney.
By 1969, Walton had established 18 Wal-Mart
stores.
• By late 1970s, the retail chain had established a
pharmacy and an auto service center.
In 1980s, Wal-Mart continued to grow due to huge
customer demands in small towns.
By 1984, there were 640 Wal-Mart stores in U.S.
Wal-Mart suffered a setback in 1992, when Walton
died.
History of Wal-Mart…
• But it continued its growth in the 1990s, focusing
on overseas stores.
• 1992, Mexico (joint venture with Cifra)
• 1994, Canada (acquired 122 Woolco stores from 1997,
Woolworth)
• Germany (acquired 21 store of Wertkauf)
Korea, Brazil, and so on.
Wal-Mart
RETAIL DIVISIONS
Wal-Mart Stores
The flagship retail division of Wal-Mart Stores,
Inc.
36 departments including family apparel, health &
beauty aids, household needs, electronics, toys,
fabrics
& crafts, lawn & garden, jewelry and shoes
Some include a pharmacy,
Tire & Lube Express, garden center,
snack bar or restaurant, Vision Center
and One-Hour Photo Processing
Operate on an "Every Day Low Price"
philosophy and are able to maintain their
low price structure through conscientious
expense control.
Super Centers
Wal-Mart stores with grocery
departments
that provide one-stop family
shopping convenience
Most include Wal-Mart Specialty Shops
(Vision Center, Tire & Lube Express and
One-Hour Photo Processing)
Provide departmental directories, 24-hour
service, and self-scanning registers for fast,
efficient checkout service.
Average between 100,000 and 220,000
square feet of retail space
SAM’S CLUB
Country's largest membership
warehouse club operating with a
renewed focus on serving small
business owners.
More than 530 Clubs in the United
States serving 46 million members
Sells business items, personal
items
including designer-label apparel,
electronics, jewelry, furniture,
seasonal
merchandise, and restaurant-
quality
food and wine
Neighborhood Market
Offer groceries,
pharmaceuticals
and general merchandise
Include fresh produce, deli
foods,
fresh meat and dairy items,
health
and beauty aids, one-hour
photo,
drive-through pharmacies, pet
supplies, and household
chemicals
SPECIALTY DIVISIONS
Tire & Lube
Express
Wal-Mart Optical
Wal-Mart
Pharmacy
Wal-Mart
Vacations
Wal-Mart Connect
Wal-Mart’s Used
BRANDS
Keepsake – Jewelry
Faded Glory – Apparel
No Boundaries – Accessories
GEORGE – Ladies Apparel
Mary-Kate and Ashley – Girls
Department
Equate – Health and Beauty
One Source – Vitamins
Ol’ Roy – Pet Food
Puritan – Clothing
Great Value – Food
Sam’s Choice – Food and Beverage
SALES BY SEGMENT
Total Sales
Net Sales Percent Percent
of Total Increase

Wal-Mart U.S. $255,745 63.7% 6.8%

International 98,645 24.6% 9.1%

Sam’s Club 46,854 11.7% 5.6%

Total net sales $401,244 100.0% 7.2%


Financial Highlights(2009)
Sales in billions Except per share data

2009 Net sales $401.2

Net sales increase $7.2%

Operating income $ 22.8

Earnings per share $ 3.35

Dividend per share $ 0.95


Financial Highlights

Net sales(1) 2009 2008 2007 2006 2005

Net sales increase $401.2 $374.3 $344.8 $3087.9 $281.5


11.6% 9.8% 11.4%
Operating income(1) 7.2% 8.6% $20.5 $18.7 $17.3

Earnings per share(2) $ 22.8 $22.0 $2.92 $2.72 $2.46

Dividend per share(3) $ 3.35 $3.16 $0.67 $0.60 $0.52

(Amounts in millions) $ 0.95 $0.88


Twelvemonths Ended

Net cash provided by January 31, January 31,


operating activities 2009 2008
Payments for property and $ 23,147 $ 20,642
equipment
Free cash flow (11,499) (14,937)

$11,648 $5,705
Some present factor of wal-mart
Today 7873 stores worldwide in countries like –
Honduras,Japan,Mexico, Argentina , Costa- rica,
Canada , China
El- salvadore ,Guatemala and the U.K. & U.S.A.
1.3 million people working
Sales for 2008 estimated to be more than $ 1billion
per day
Wal-mart around the world

United States ★ 4,258 Stores


Argentina ★ 28 Units
Brazil ★ 345 Units
Canada ★ 318 Units
China ★ 243 Units
Costa Rica ★ 164 Units
Japan ★ 371 Units
 Mexico ★ 1,197 Units
United Kingdom ★ 358 Units
wal-mart as a International level

Country super discount super hyper other total


markets stores center markets
Argentina — — 22 — 6 28
Brazil (1) 155 — 34 71 85 345
Canada (2) — 256 56 — 6 318
Chile 46 76 — 75 — 197
China — — 132 103 8 243
Costa Rica 25 122 — 6 11 164
Guatemala 29 109 — 6 16 160
Honduras 7 36 — 1 6 50
Japan 264 — — 106 1 371
Mexico (3) 163 67 154 — 813 1,197
Nicaragua 7 44 — — — 51
Puerto Rico 31 7 8 — 10 56
United Kingdom 37 — 30 — 21 358
Grand Total 1,064 762 4 36 370 98 3,615
Overview of Wal-Mart
• There are 4 different segments
• Wal-Mart Stores- sales amounted to
64.3%
– Discount Stores- 1,568 U.S
– Supercenters- 1,258 U.S
– Neighborhood Markets- 49 stores U.S
• Sam’s Club- sales amounted to 13.0%
– 525 stores U.S
– Is a member only, cash and carry
operations
• International- sales amounted to 16.7%
– Discount stores- 942 Sam’s
Clubs- 71
– Supercenters- 238
Neighborhood Market- April
37 19, 2008

• Other- amounted to 6.1%


COMPETITORS
Target Corp.
Wal-Mart’s primary competitor and the
nation’s
second largest retailer

Kmart Holding Corp.


Wal-Mart’s secondary competitor
and
The nation’s third largest retailer
INTRODUCTION OF S.C.M
Supply chain “Consists of all parties
involved, directly or indirectly, in the
procurement of a product or raw
material”

Supply chain management (SCM) –


“Involves the management of information
flows between and among stages in a supply
chain to maximize total supply chain
effectiveness and profitability”
Supply Chain
Supply Chain

 All activities associated with the flow and


transformation of goods and services
from raw materials to the end user, the
customer
 A sequence of business activities from
suppliers through customers that provide
the products, services, and information to
achieve customer satisfaction
The Supply Chain

Information

Suppliers Producers Distributors Customers

Materials, Finished Package Total


parts, sub- goods, end and delivery satisfaction
Products Products Products
assemblies, and products and and with quality,
and
Services
and services Services Services price,
services delivery,
and service
Inventory Inventory Inventory

Cash
The Wal-Mart Supply
Chain
Information in the
Supply Chain
 Consolidation of purchasing
from all suppliers
 Intercompany and intra
company information access
 Data interchange
 Data acquisition at the point of
origin and point of sale
 Instantaneous updating of
inventory levels
Supply Chain Processes
Importance of Supply Chain
Management
Synchronization of activities
required to achieve
maximum competitive
benefits
Coordination, cooperation,
and communication
Rapid flow of information
Vertical integration
Benefit of SCM to Wal-Mart

“It’s really all about service to our customers. Our


investment in this technology helps our supplier
partners
and Wal-Mart buyers provide customers with what
they
want: the right product in the right store at the
right price.”
---- Tom Coughlin, President and
CEO of the Wal-Mart
AWARDS & RECOGNITION
2003 –Most admired company in America – FORTUNE
magazine
2002 – Ron Brown Award for Corporate Leadership
(recognizes companies for outstanding employee and
community relations)No.1 on the FORTUNE 500 list
2001 – Hispanic Business Magazine named Wal-Mart one
of the Top 25 Diversity Recruitment Programs for its
aggressive.
2000 – No.1 Corporate Citizen in America – Cone/Roper
Report
(an annual national survey regarding corporate
citizenship)
1999 –Retailer of the Century – Discount Store News and
Mass Market Retailers
Future plans of wal-mart

Wal-mart ended the year with more than 4,200


stores in 50 states.
Between remodels and new stores,
we plan to update approximately
700 stores this year to improve the
customer experience and drive sales
More Brands Than Ever:
Wal-Mart (U.S.) continues to increase its offerings
of top brands for less, including Sony®,
Samsung®, Dell®, Nintendo®, Garmin®,
Dyson®, Kitchen Aid®, Chicago Cutlery®,
L.e.i.®, Dan skin Now® and Starter®.
Future plans of wal-mart

Expanding in Asia: We opened a Hong


Kong regional office to facilitate long-term
opportunities in Asia, to support existing
operations in Japan, China and India, and
to further build our leadership team.
New Market: Wal-Mart entered Chile
through the acquisition of a controlling
interest
in Distribución y Servicio (D&S) , Chile’s
largest
food retailer.
By 2011, our China stores expect to buy
Future plans of wal-mart

Creating Jobs: Wal-Mart created


approximately 63,000 jobs around the
world in 2008, including more than
33,000 in the United States. We plan
to create tens of thousands more jobs
this year.
What it takes to be a
“WAL-MART
• The Winning strategy- selling branded
products at low cost.
• Non dependence on any single vendor.
• Reliability on its own distribution system.
•Wal-Mart was offering low prices, customer
satisfaction guaranteed, and hours that were
realistic for the way people wanted to shop.

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