By:-RAJ PARBATSHYANAN ROYSHIVAM GUPTA

The companys founder is Sam Walton.Walton gave up his job and decided to set up his own retail store. He purchased a store franchise in Arkansas.Offering significant discounts on prices, he became successful and acquired a second store in 3 years.

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.

YEAR 1945Ben Franklin franchise store YEAR 1962Wal-mart Discount City store YEAR 196918 Wal-mart stores15 Ben Franklin franchise stores

Year 1970 30 discount stores in rural statesSouth and MidwestCost of good soldBuild its own warehouse Buy in volume at attractive prices Store the merchandise

Year 1972Took the company publicRaised $3.3 million

Year 1993West coast andnorth-eastern states

Year 1994Operated in 47 states

Wal-Mart suffered a setback in 1992, when Walton died.

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 Woolworth)1997, Germany (acquired 21 store of Wertkauf)Korea, Brazil, and so on.

Located stores in small towns since big retailers such as Kmart and Sears dominated large townsKept overhead lowOffered incentives - Profit-sharing for staffPartnerships for suppliersLarge investment in IT To keep inventory lowCustomers got friendly serviceAND, Everyday Low Price

Walton figured out that most of the costs gets added after the product leaves the factory and moves through the supply chain: Mfg. Wholesaler Retailer 20% - 30% of retail price spent on keeping inventory in 3 warehouses Walton eliminated the wholesaler He instituted JIT inventory practices using real-time flow of information from a stores sales floors to the suppliers plants that dictated: What to produce? When to ship? To which stores?

Annual 2001 sales: $220 billion Pre-text Profits: $9.3 Million .. 60% of U. S. Retail Sales#1 Food Retailer in the U.S.: $56 billion in 2001 .. Opened since 1985 over 1000 massive dept./grocery supercenters, at 200,000 sq. ft., bigger than 4 football fields # of employees worldwide: 1.28 million .. More than the US Postal service ; # in China : 4,000# of Suppliers : 30,000 .. In every continent but AntarcticaValue of 100 shares bought in 1970 @ $16.50 per share: $11.5 millionWal-Marts % of P&G's $40 billion in annual sales : 15% P&G has a 150-strong Bentonville office & Senior EVP dedicated to Wal-MartTypical starting hourly wage: $6.50

THANK YOU..!!!

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