Walmart

Walmart Inc.: The Giant of Retail

Imagine a retail giant that started with humble beginnings but grew to become the world’s largest company by revenue, with over 10,586 stores and clubs worldwide. That’s Walmart Inc., an American multinational retail corporation with operations in 24 countries and 46 different names.

Founding and Early Growth

In 1945, Sam Walton bought a branch of Ben Franklin stores from Butler Brothers and began selling products at low prices to increase volume sales. His first store opened in 1962 and expanded rapidly to 18 stores in Arkansas within five years.

Corporate Structure and Ownership

Walmart operates a chain of hypermarkets, discount department stores, and grocery stores, with 10,586 stores and clubs worldwide. It is the largest private employer in the world, with 2.1 million employees, and is controlled by the Walton family, who own over 50% of the company.

Global Expansion

Walmart has expanded its operations to Canada, UK, Central America, Chile, and China, but failed ventures in Germany, Japan, South Korea, Brazil, and Argentina. In 2000, H. Lee Scott became Wal-Mart’s president and CEO as the company’s sales increased to $165 billion.

Environmental Initiatives

In 2005, Wal-Mart reported US$312.4 billion in sales, more than 6,200 facilities around the world—including 3,800 stores in the United States and 2,800 elsewhere, employing more than 1.6 million associates.

Employee Benefits and Policies

In February 2010, Walmart announced significant employee benefits, including bonuses, profit sharing, pension contributions, merchandise discounts, and stock purchase plan contributions. In fiscal 2017, the company plans to open between 50 and 60 Supercenters, 85 to 95 Neighborhood Markets, 7 to 10 Sam’s Clubs, and 200 to 240 international locations.

Technology and Innovation

The company has acquired several software companies, including Kosmix, and developed its own search engine, Polaris. Many Walmart technology projects are coded in the open and available through the Walmart Labs GitHub repository as open-source software under the OSI approved Apache V2.0 license.

Impact on Local Communities

The economic impact of Walmart is significant. A study found that discounting on food boosts consumer welfare by at least $50 billion per year, while another study estimated that Walmart saves shoppers over $200 billion annually. However, the company’s expansion can also have negative effects on small retailers and local communities.

Challenges and Controversies

Walmart has faced lawsuits and issues with regards to low wages, poor working conditions, inadequate health care, and anti-union policies. The company employs almost five times as many people as IBM, more African Americans than any other private employer, and 1.6 million employees as of 2020.

Future Directions

In response to the COVID-19 pandemic, Walmart expanded its vaccination efforts, offering vaccines in multiple states and aiming to deliver millions of doses per month. The company also relaxed mask mandates for fully vaccinated employees.

As Walmart continues to evolve, it faces both opportunities and challenges. From expanding its e-commerce presence to addressing environmental concerns and employee welfare, the retail giant is navigating a complex landscape. Will Walmart’s future be defined by continued growth or a shift towards more sustainable practices? Only time will tell.