Presented By:

Akshat Vaid (91004)

Navjot Singh Bindra (91010)
Harsh Sanchay Grover (91021)
Shanky Jaiswal (91025)
Samarth Gulati (91047)
BRIEF ABOUT THE WALMART
 On July 2, 1962, Walton opened the first Wal-Mart
Discount City store located at 719 Walnut Ave. in Rogers,
Arkansas
 Within five years, the company expanded to 24 stores
across Arkansas and reached $12.6 million in sales
 In 1968, it opened its first stores outside Arkansas
Missouri and Oklahoma
 The company was incorporated as Wal-Mart Stores, Inc.
on October 31, 1969. In 1970, it opened its home office
and first distribution center in Bentonville, Arkansas
BRIEF ABOUT THE WALMART (CONTD.)
 In the 1980s, Walmart continued to grow rapidly, and by its 25th anniversary
in 1987 there were 1,198 stores with sales of $15.9 billion and 200,000
associates.

 This year also marked the completion of the company's satellite network, a
$24 million investment linking all operating units of the company with its
Bentonville office. At the time, it was the largest private satellite network,
allowing the corporate office to track inventory and sales and to instantly
communicate to stores.

 In 1988, Sam Walton stepped down as CEO and was replaced by David
Glass. Walton remained as Chairman of the Board, and the company also
rearranged other people in senior positions.
BRIEF ABOUT THE WALMART (CONTD.)
 By 2005, estimates indicate that the company controlled about
20% of the retail grocery and consumables business.

 In 2002, it was listed for the first time as America's largest

corporation on the Fortune 500 list.

 In the aftermath of Hurricane Katrina in September 2005,

Walmart was able to use its logistical efficiency in organizing a
rapid response to the disaster, donating $20 million in cash, 1,500
truckloads of free merchandise, food for 100,000 meals, as well as
the promise of a job for every one of its displaced workers.
LAST 5 YEAR TURNOVER

Year 2006 2007 2008 2009 2010

$405.0
Net Sales $308.9 $344.8 $373.8 $401.1

Net Sales
Increase 9.8% 11.6% 8.4% 7.3% 1.0%
INTERNATIONAL AND DOMESTIC BREAK UP OF SALES

 Wal-Mart has 8,500 stores in 15 countries, with 55 different

names.
 It operates under its own name in Puerto Rico.
 Wal-Mart operates in Mexico as Walmex, in the United Kingdom
as Asda ("Asda Wal-Mart" in some branches), in Japan as Seiyu,
and in India as Best Price.
 It has wholly owned operations in Argentina, Brazil, and Canada.
 Wal-Mart's investments outside North America have had mixed
results: its operations in the United Kingdom, South America and
China are highly successful, while it was forced to pull out of
Germany and South Korea when ventures there were
unsuccessful.
INTERNATIONAL OPERATIONS DATA SHEET

Market Retail Units Date of Entry

Mexico 1,210 November 1991
Puerto Rico 56 August 1992
Canada 312 November 1994
Brazil 344 May 1995
Argentina 28 August 1995
China (*) 246 August 1996
United Kingdom 360 July 1999
Japan 371 March 2002
Costa Rica 164 September 2005
El Salvador 78 September 2005
Guatemala 159 September 2005
Honduras 51 September 2005
Nicaragua 52 September 2005
Chile 204 January 2009
 International net sales for fiscal year 2010 were
$100.1 billion, an increase of 1.3 percent from
last year.
 On a constant currency basis, International net
sales increased 11.2 percent to $109.9 billion in
fiscal year 2010, compared to $98.8 billion in
fiscal year 2009
FORMATS IN OPERATION (SALES)

Segment Sales (2010)

Walmart U.S.
$258.2 bn

Sam’s Club
$100.1 bn

Walmart International
$46.7 bn

Total $405.0 bn
FORMATS IN OPERATION (COUNT) #AS OF JANUARY 31, 2010

Segments Count
Walmart U.S.
Discount Stores 803
Supercenters 2,747
Neighborhood Markets 158
Walmart U.S.Total 3,708
Sam’s Clubs 596
Walmart International
Supermarkets 844
Discount Stores 973
Supercenters 526
Hypermarkets 650
Others 1,119
Walmart International Total 4,112
Grand Total 8,416
 WAL*MART EXIT GERMANY
Primary Reason
Wal-Mart’s most fundamental mistake was its
initial strategy of entering a highly mature retail
market by acquiring small companies with a
relatively low combined market share of about
three percent. Even with its current 85 stores,
Wal-Mart was less than one-fifth the size of its
main rival Kaufland
 WAL*MART EXIT GERMANY
Other Reasons
 Lack of understanding of local consumers’ tastes

 Imposition of an American management culture

 Aggressive competition from no-frills "hard” discounters,

such as Aldi and Lidl

 Losing battles with Germany’s largest workers union

WAL*MART EXIT SOUTH KOREA
Primary Reason

The country's generally wealthy

consumers are used to exceptionally
high customer service levels, and rate
price below convenience, quality and
choice.
WAL*MART EXIT SOUTH KOREA
Other Reasons
 Fairly disappointing 10-year stint in the country where it
failed to make the top five retail list.

 Competition from the local players who understood the

market well

 South Korean Shoppers wanted quality shopping experience

compared to Wal-Mart which had a Hyper Mart Model with
Warehouse type stores
RETAIL MEASUREMENT PARAMETERS
 Wal-Mart Stores serve customers and members
more than 200 million times per week at 8,400
retail units under 55 different banners in 15
countries.

 Total Sales: $405 Billion

 Gross Profit margin: 27%
 Total operating Expenses: $ 88.73 Billion
RETAIL MEASUREMENT PARAMETERS
 Square Footage: 971 Million
 Sales Per square ft.: $ 680.88
 Employees: 2,100,000
 Sales per employee: $ 192000
 Inventory Turnover: 7.7
THANK YOU