Category Archives: Wal-Mart Stores, Inc.

Wal-Mart Stores — Products and Services

Wal-Mart’s range of merchandise and services are as follows:

Product Categories at Wal-Mart Stores:

  • Grocery
  • Health & beauty aids
  • Health & wellness
  • Apparel, shoes & jewelry
  • Home
  • Entertainment, electronics & toys
  • Seasonal & hardlines

Product Categories at Sam’s Club:

  • Sundries
  • Food
  • Hardgoods
  • Service businesses including fuel
  • Softgoods

Brands:

Private-Label Brands:

  • Sam’s Choice
  • Great Value
  • Everstart
  • Ol’ Roy
  • Puritan
  • Equate
  • No Boundaries
  • George
  • Athletic Works
  • Durabrand
  • HomeTrends
  • Member’s Mark
  • Bakers & Chefs
  • Sam’s Club
  • Mainstays
  • Metro 7
  • Parent’s Choice
  • Ozark Trail
  • ReliOn
  • White Stag
  • Sand N Sun
  • Canopy and Kid Connection

Licensed Brands:

  • General Electric
  • Disney
  • McDonald’s
  • Mary-Kate and Ashley
  • Better Homes & Gardens and Starter

Wal-Mart Stores — Key Employees

Name

Job Title

Board

Compensation

H Lee Scott

President and Chief Executive Officer

Executive Board

1831446 USD

S Robson Walton

Chairman

Executive Board

Aida M Alvarez

Director

Non Executive Board

208156 USD

James W Breyer

Director

Non Executive Board

215000 USD

M Michele Burns

Director

Non Executive Board

210976 USD

James I Cash

Director

Non Executive Board

231221 USD

Roger C Corbett

Director

Non Executive Board

227285 USD

Douglas N Daft

Director

Non Executive Board

211181 USD

David D Glass

Director

Non Executive Board

200593 USD

Roland A Hernandez

Director

Non Executive Board

225630 USD

Jack C Shewmaker

Director

Non Executive Board

207369 USD

Jim C Walton

Director

Non Executive Board

201377 USD

Christopher J Williams

Director

Non Executive Board

222732 USD

Linda S Wolf

Director

Non Executive Board

216102 USD

Allen I Questrom

Director

Non Executive Board

175252 USD

Leslie A Dach

Executive Vice President, Corporate Affairs and Government Relations

Senior Management

Rollin L Ford

Executive Vice President and Chief Information Officer

Senior Management

Charles M Holley

Executive Vice President, Finance, and Treasurer

Senior Management

Thomas D Hyde

Executive Vice President and Corporate Secretary

Senior Management

Thomas A Mars

Executive Vice President and General Counsel

Senior Management

Thomas M Schoewe

Executive Vice President and Chief Financial Officer

Senior Management

857198 USD

William S Simon

Executive Vice President, Chief Operating Officer, Wal-Mart Stores Division

Senior Management

Eduardo Castro-Wright

Executive Vice President; and President and Chief Executive Officer, Wal-Mart Stores Division

Senior Management

928267 USD

Vicente Trius

Executive Vice President, President and CEO of Wal-Mart Asia, International Division

Senior Management

Michael T Duke

Vice Chairman, International Division

Senior Management

1239404 USD

Wal-Mart Stores — History

Wal-Mart was established in 1969. In the following year, Wal-Mart became a publicly-held company and started selling shares over the counter. In 1972, the company got listed on the New York Stock Exchange. Wal-Mart diversified into grocery (Wal-Mart Supercenters), international operations, and membership warehouse clubs (Sam’s Clubs) during the 1980s. In 1983, the company opened Sam’s Wholesale Club, a concept based on the successful cash-and-carry, membership-only warehouse format pioneered by the Price Company of California (now Costco Wholesale Corporation). The company started Hypermart*USA in 1987 as a joint venture with the Dallas-based supermarket chain Cullum Companies (now Randall’s Food Markets). Hypermart USA outlets later became the company’s Wal-Mart Supercenters. In 1989, Wal-Mart acquired Cullum Companies.

Wal-Mart acquired a wholesale distributor, McLane Company, in 1990.The company entered Mexico in 1992 through a joint venture with Mexico’s largest retailer, Cifra, to open Sam’s Clubs. Furthermore, it acquired 122 former Woolco stores in Canada in 1994.Wal-Mart continued to expand internationally, and established Chinese operations in 1996. It also acquired the German hypermarket chain, Wertkauf, in 1997. In Brazil, Wal-Mart acquired a stake in the retailer Lojas Americanas, in 1998. During the same year, the company began testing the Neighborhood Market format, a 40,000-square-foot grocery and drug combination store. In 1999, Wal-Mart purchased 74 German-based Interspar hypermarkets and acquired ASDA Group, the UK’s third-largest supermarket chain.

The company began selling household appliances in selected stores in 2000. Wal-Mart launched its ‘No Boundaries’ private label cosmetics brand in 2001. Wal-Mart started operating in Japan in 2002, acquiring a 6% stake in one of Japan’s top retailers, Seiyu. Later that year, the company increased its stake in Seiyu to 36%. The company also acquired, Supermercados Amigo, in Puerto Rico in the same year. During 2002, Wal-Mart started 107 international units, with two in Brazil, 22 in Canada, eight in China, two in Germany, three in South Korea, 59 in Mexico, two in Puerto Rico, and nine in the UK. The company’s attempt to open a state industrial bank in California, in 2002, failed owing to legal problems.

Wal-Mart sold its McLane subsidiary, a US grocery distributor, in 2003. This subsidiary was sold to Berkshire Hathaway, allowing Wal-Mart to concentrate on its core retail activities. Throughout the year and well into 2004, the company focused on expansion in China. In 2004, Wal-Mart Brazil acquired Bompreco, a retail chain in northeastern Brazil with 118 units (hypermarkets, supermarkets and mini markets) from a Dutch retailer, Royal Ahold. During the same year, Wal-Mart launched its online music store.

In early 2005, the company entered a joint venture with CITIC Pacific to open hundreds of stores in China over the following five years. Wal-Mart held a 65% share of the venture. During the same period, Wal-Mart Canada, the Canadian arm of Wal-Mart Stores, closed one of its two Quebec stores in Jonquiere because of its weak financial performance.Wal-Mart increased its stake in Seiyu (Japan) to 42% in mid 2005. In the same year, Wal-Mart purchased a one-third interest in Central American Retail Holding (CARHCO), an operator of supermarkets in Guatemala, El Salvador, Honduras,

Nicaragua, and Costa Rica. In late 2005, Wal-Mart also acquired about 140 stores in Brazil from Sonae, a Portuguese retailer, for about $757 million, increasing the number of outlets it operates in Brazil to nearly 300.

The company acquired an additional 17.7% interest in CARHCO from Royal Ahold in 2006, increasing its stake in the Central America supermarket operator to 51%. Shinsegae Company, South Korea’s leading retailer, agreed to purchase the company’s South Korean retail business for KRW825 billion (approximately $882 million) in the same year. The company sold its German retail business to Metro, in 2006. Later in 2006, Eagles and Wal-Mart entered a long-term strategic marketing agreement, including sponsorship, exclusive audio and video releases, and product visibility.

Wal-Mart purchased a 35% interest in Bounteous Company, which operated hypermarkets in China under the Trust-Mart banner, in February 2007. Wal-Mart introduced the neighborhood market concept to Naples with a new company design in March 2007. In the following month, the company announced an expansion of associate-established effort on ’Personal Sustainability Projects‘ (PSPs). In May 2007, Wal-Mart announced its plans to open nearly 400 in-store health clinics over the following two to three years. During the same month, Wal-Mart partnered with Skype to bring Internet communications to the masses. As part of a pilot project to determine solar power viability, the company purchased solar power from three providers, BP Solar, SunEdison, and SunPower subsidiary PowerLight during the same period.

Fendi and Sam’s Club resolved the dispute regarding sale of counterfeit bags and other products under the Fendi label in June 2007. Under the agreement, Sam’s Club had to pay a confidential amount for settlement to Fendi. In the same month, Wal-Mart announced its intentions to open 1,000 financial centers by the end of 2009 in its stores, so that customers would be able to pay bills, cash paychecks and obtain other financial services. In tandem with the intended roll-out of a financial center, Wal-Mart announced the introduction of pre-paid debit card catering to low-income US customers.

In July 2007, the company completed the final phase of its Site to Store national rollout to more than 3,300 stores across the country. This service allowed customers to order products online at Walmart.com, most of which were also available in its stores.Wal-Mart entered a 50:50 joint venture agreement with Bharti Enterprises to establish Bharti Wal-Mart (Private Limited) in August 2007. The joint venture was meant for establishing wholesale cash-and-carry and back-end supply chain management operations in India. In September 2007, the company formed a partnership with the Carbon Disclosure Project, a not-for-profit organization, to help its suppliers in managing energy efficiency. In October 2007, Wal-Mart announced the addition of two new Home brands. In the same month, the company opened 36 new stores in the US.

Vicente Trius was appointed as the Executive Vice President, President and Chief Executive Officer of Wal-Mart Asia, International, in January 2008. In the same month, Wal-Mart reopened its store at Oakland Park Boulevard and University Drive, which was damaged by Hurricane Wilma two years ago. The company announced its plan to expand its in-store clinic network and to open its first co-branded clinics at Supercenter stores in Atlanta, Little Rock and Dallas, in February 2008.

In March 2008, Wal-Mart announced its plan to open 81 new stores and clubs in the US. In the same month, the company’s store in Orange Park, Florida, relocated its discount store and expanded its format to a Supercenter, providing an additional one-stop shopping destination to its customers. New Supercenter’s were opened near Orlando International Airport, West Point, Chandler, Checotah and Coweta, in the same month. The company also announced to open its smallest Wal-Mart Supercenter in California in early 2009. Wal-Mart launched six coffee products under its Sam’s Choice brand in April 2008. In the following month, another Supercenter Wal-Mart opened in Ponce, Puerto Rico.

Wal-Mart Stores — Business Description

Wal-Mart Stores (Wal-Mart) is the world’s largest retail company. The company operates retail stores in various formats. At the end of January 2008, the company operated 971 discount stores, 2,447 supercenters, 591 Sam’s Clubs and 132 Neighborhood Markets in the US. Wal-Mart also operates various international markets as well, these include the UK, Canada, Japan, Mexico, Brazil and China.

The company retails a range of merchandise and services at low prices. These assortments of products include both national brands and private-brands. Wal-Mart operates a network of 121 distribution centers. These distribution centers primarily service the operating segment named Wal-Mart Store. In addition, these distribution centers also supply Sam’s Club with perishable items, jewelry, tires and product returns.

Wal-Mart operates its business under three business segments: Wal-Mart Stores, Sam’s Club, and the international segment. The company has a fourth, non-operating, segment named ‘Others’ which comprises unallocated overhead items.

The Wal-Mart Stores segment operates three different retail formats in the US: discount stores, supercenters and neighborhood markets. These stores differ in size as well as in the range of merchandise they offer. Wal-Mart Stores segment operates in all the 50 states of the US. Besides offering general merchandise and grocery, Wal-Mart Stores also offer financial services such as money order sales, wire transfers, check cashing and bill payment. The online retail format walmart.com also forms a part of this segment.

Wal-Mart operates more than 1,000 discount stores in 47 states in the US. The discount stores average 108,000 square feet in size. Discount stores offer value-priced general merchandise including: family apparel, automotive products, health and beauty aids, home furnishings, electronics, hardware, toys, sporting goods, lawn and garden items, pet supplies, jewelry, and household wares.

The company has over 2,447 Wal-Mart supercenters in 47 US states. In addition to general merchandise, Wal-Mart supercenters offer bakery goods, deli foods, frozen foods, meat and dairy products, and fresh produce. The supercenters also feature a number of specialty shops such as vision centers, Tire & Lube Expresses, Radio Grill, McDonald’s or Subway restaurants, portrait studios and one-hour photo centers, hair salons, banks, and employment agencies. These supercenters average 187,000 square feet in size
Neighborhood Markets offer a full-line supermarket and a limited assortment of general merchandise. The company has over 132 neighborhood markets in about 15 US states.The neighborhood markets offer fresh produce, deli foods, fresh meat and dairy items, health and beauty aids, one-hour photo and traditional photo developing services, drive-through pharmacies, stationery and paper goods, pet supplies, and household chemicals. Neighborhood markets average 42,000 square feet in size.

The company operates 591 Sam’s Club in 48 US states. Sam’s Club is a membership warehouse club, serving both individuals and businesses. Sam’s Club offers bulk displays of brand name merchandise including hard goods, some soft goods, institutional-size grocery items, and selected private-label items under the Member’s Mark, Bakers & Chefs and Sam’s Club brands. Most Sam’s Club warehouses have fresh departments which include bakery, meat, produce, floral and Sam’s Cafe. Additionally, a significant number of Sam’s Club warehouses offer photo processing, pharmaceuticals, optical departments and gasoline stations. Sam’s Club warehouses average 132,000 square feet in size.

Sam’s Club’s members include both individual consumers and small business openers. Sam’s Club network of distribution center comprises seven company-owned and operated distribution facilities, 17 third-parties owned and operated facilities. Sam’s Club’s distribution operations primarily serve as cross docking merchandise. This segment supports its online business samsclub.com through a third party-owned and operated distribution center in Texas. Sam’s Club uses a combination of private fleet and common carriers to transport non-perishable merchandise from distribution centers to Sam’s Club.

Wal-Mart operates in 12 countries and Puerto Rico.Wal-Mart’s international segment comprises the company’s wholly-owned subsidiaries in Argentina, Brazil, Canada, Puerto Rico and the UK. It also includes Wal-Mart’s majority-owned subsidiaries in Central America, Japan and Mexico and joint ventures in China. The operating formats vary from country to country, and include discount stores (Canada and Puerto Rico), supercenters (Argentina, Brazil, China, Japan, Mexico, Puerto Rico and the UK) and Sam’s Clubs (Brazil, Canada, China, Mexico and Puerto Rico).

A combination of company-owned and operated distribution facilities and third-party facilities constitute the distribution structure for the International segment. The International segment operates export consolidation facilities in California, Florida and Texas to support product flow to Mexican, Asian, and Central and South American markets. In addition, a Wal-Mart Stores segment distribution center in Pennsylvania exports products to the International segment’s operations in Canada.

Wal-Mart Stores — Key Facts

Head Office

Wal-Mart Stores, Inc. Bentonville Arkansas 72716 8611 USA

Phone

1 479 273 4000

Fax

1 800 438 6278

Web Address

http://www.walmartstores.com

Revenue / turnover (USD Mn)

378,799.0

Financial Year End

January

Employees

2

New York Stock Exchange Ticker

WMT