History Of Wal Mart

Wal-Mart

When Wal-Mart came into existence in 1962, the owner Sam Walton never thought it would become the great success that it is today. The company was not incorporated until October 31, 1969 and was listed on the New York Stock Exchange in 1972.

Sam Walton started working in the retail business in 1940, with the company JC Penny. He then worked for a retail store named Ben Franklin. Within a few years, Walton opened a Ben Franklin franchise called Walton’s Five and Dimes which was a discount retail store that achieved higher sales volume by marking up slightly less than the competitors. By 1962, Walton had opened his first Wal-Mart store in Arkansas, and within 5 years he has opened 24 stores reaching $12.6 million in sales. In 1968, the first Wal-Mart out of Arkansas was opened in Missouri.

Wal-Mart Stores Division US is Wal-Mart’s largest business subsidiary that accounts for 67.2% of net sales for 2006. It consists of Wal-Mart Discount Stores, Wal-Mart Supercenter, and Wal-Mart neighborhood market. Wal-Mart discount stores are general merchandise stores averaging 102,000 sq ft. Wal-Mart supercenters are an average of 197,000 sq ft and consist of general merchandise and a full service grocery store. This was a good approach for Wal-Mart because it helps the consumer get multiple shopping trips done in one shot. Also, consumers tend to spend more the more the store offers. Wal-Mart neighborhood markets are grocery stores the average 42,000 sq ft.

The three other parts of Wal-Mart Inc are Sam’s Club, Wal-Mart international, and Private label brands. Sam’s Club is a chain of warehouse clubs that sells groceries and general merchandise at wholesale prices, usually in large quantities. Sam’s club stores are “membership” stores. The company makes up the profit by charging a membership