Walmart Ret Latest

8/3/2019 Walmart Ret Latest

1/16

Presented By:

Akshat Vaid (91004)Navjot Singh Bindra (91010)

Harsh Sanchay Grover (91021)Shanky Jaiswal (91025)

Samarth Gulati (91047)


2/16

BRIEF ABOUT THE WALMART

On July 2, 1962, Walton opened the first Wal-MartDiscount City store located at 719 Walnut Ave. inRogers, Arkansas

Within five years, the company expanded to 24 storesacross Arkansas and reached $12.6 million in sales

In 1968, it opened its first stores outside ArkansasMissouri and Oklahoma

The company was incorporated as Wal-Mart Stores,Inc. on October 31, 1969. In 1970, it opened its homeoffice and first distribution center in Bentonville,Arkansas


3/16

BRIEF ABOUT THE WALMART (CONTD.)

In the 1980s, Walmart continued to grow rapidly, and by its 25thanniversary in 1987 there were 1,198 stores with sales of $15.9billion 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 thecompany with its Bentonville office. At the time, it was the largestprivate satellite network, allowing the corporate office to trackinventory and sales and to instantly communicate to stores.

In 1988, Sam Walton stepped down as CEO and was replaced byDavid Glass. Walton remained as Chairman of the Board, and thecompany also rearranged other people in senior positions.


4/16

BRIEF ABOUT THE WALMART (CONTD.)

By 2005, estimates indicate that the company controlledabout 20% of the retail grocery and consumablesbusiness.

In 2002, it was listed for the first time as America's largestcorporation 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 $20million in cash, 1,500 truckloads of free merchandise,food for 100,000 meals, as well as the promise of a job forevery one of its displaced workers.


5/16

INTERNATIONAL AND DOMESTIC BREAK UP OF

SALES

Wal-Mart has 8,500 stores in 15 countries, with 55different 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), inJapan 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, SouthAmerica and China are highly successful, while it wasforced to pull out of Germany and South Korea whenventures there were unsuccessful.
http://en.wikipedia.org/wiki/Puerto_Ricohttp://en.wikipedia.org/wiki/Walmexhttp://en.wikipedia.org/wiki/Asdahttp://en.wikipedia.org/wiki/Seiyu_Grouphttp://en.wikipedia.org/wiki/Best_Pricehttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Best_Pricehttp://en.wikipedia.org/wiki/Seiyu_Grouphttp://en.wikipedia.org/wiki/Asdahttp://en.wikipedia.org/wiki/Walmexhttp://en.wikipedia.org/wiki/Puerto_Rico


6/16

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 2002Costa Rica 164 September 2005

El Salvador 78 September 2005

Guatemala 159 September 2005

Honduras 51 September 2005

Nicaragua 52 September 2005


7/16

International net sales for fiscal year 2010were $100.1 billion, an increase of 1.3percent from last year.

On a constant currency basis, Internationalnet sales increased 11.2 percent to $109.9billion in fiscal year 2010, compared to $98.8

billion in fiscal year 2009


8/16

LAST 5 YEAR TURNOVER

Year 2006 2007 2008 2009 2010

NetSales $308.9 $344.8 $373.8 $401.1 $405.0

NetSales

Increase9.8% 11.6% 8.4% 7.3% 1.0%


9/16

FORMATS IN OPERATION (SALES)

Segment Sales (2010)

Walmart U.S. $258.2 bn

Sams Club$100.1 bn

Walmart International$46.7 bn

Total $405.0 bn


10/16

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

Sams Clubs 596

Walmart International

Supermarkets 844

Discount Stores 973Supercenters 526

Hypermarkets 650

Others 1,119

Walmart International Total 4,112

Grand Total 8,416


11/16

WAL*MART EXIT GERMANY

Wal-Marts most fundamental mistake was itsinitial strategy of entering a highly matureretail market by acquiring small companieswith a relatively low combined market shareof about three percent. Even with its current85 stores, Wal-Mart was less than one-fifth

the size of its main rival Kaufland


12/16

WAL*MART EXIT GERMANY

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 Germanys largest workers union


13/16

WAL*MART EXIT SOUTH KOREA

The country's generally wealthyconsumers are used to

exceptionally high customer servicelevels, and rate price below

convenience, quality and choice.


14/16

WAL*MART EXIT SOUTH KOREA

Fairly disappointing 10-year stint in the country where itfailed to make the top five retail list.

Competition from the local players who understood themarket well

South Korean Shoppers wanted quality shoppingexperience

compared to Wal-Mart which had a Hyper Mart Modelwith

Warehouse type stores


15/16

RETAIL MEASUREMENT PARAMETERS

Wal-Mart Stores serve customers andmembers more than 200 million times perweek 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


16/16

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

Footfalls:

Conversion Ratio:

Average Ticket size:

Documents

Walmart Ret Latest