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

Tel: 479/273-8446

Web: http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=1

 

Background:

In the early 1960’s Sam Walton's tiny chain of variety stores in Arkansas and Kansas was already facing competition from regional discount chains. Sam traveled the country to study this large scale discount retailing concept and was convinced it was the wave of the future. He and his wife, Helen, put up 95 percent of the money for the first Wal-Mart store in Rogers, Arkansas, borrowing heavily on Sam's vision that the American consumer was shifting to a different type of general store.

Today, Wal-Mart, Sam's gamble, is a global company with more than 1.8 million associates worldwide and nearly 6,500 stores and wholesale clubs across 15 countries. The "most admired retailer" according to FORTUNE magazine has just completed one of the best years in its history: Wal-Mart generated more than $312.4 billion in global revenue in the fiscal year ended January 31, 2006, establishing a new record and an increase of 9.5 percent. The company earned almost $11.2 billion in net income in fiscal 2005.

 

Approach:

But it all started with an understanding of what consumers want from a retailer.

"The secret of successful retailing is to give your customers what they want," Sam wrote in his autobiography. "And really, if you think about it from the point of view of the customer, you want everything: a wide assortment of good quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience.

 

Technology:

Technology plays an important role in helping Wal-Mart stay customer focused. Wal-Mart invented the practice of sharing sales data via computer with major suppliers, such as Proctor & Gamble. Every time a box of Tide is rung up at the cash register, Wal-Mart's data warehouse takes note and knows when it is time to alert P&G to replenish a particular store. As a result, Wal-Mart stores rarely run out of stock of popular items.

 

International:

Wal-Mart became an international company in 1991 when a SAM'S Club opened near Mexico City. Just two years later, Wal-Mart International was created to oversee the growing opportunities for the company worldwide. Since then, the International segment has enjoyed rapid growth and consumer acceptance.

Today, customers at more than 2,660 units in fourteen countries prove Wal-Mart's Every Day Low Price promise is a message clearly understood in any language. Wal-Mart International employs more than 500,000 associates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, South Korea, Puerto Rico and the United Kingdom

 

H. Lee Scott, Jr.
President and CEO

Lee has served as Wal-Mart's President and Chief Executive Officer since January 2000. Under his leadership, Wal-Mart has continued to grow and improve throughout its business formats, including Wal-Mart Discount stores, Supercenters, Neighborhood Markets, SAM'S CLUB and walmart.com. Wal-Mart's international business has seen particular growth and profit improvement in recent years.

Lee joined Wal-Mart in 1979 and rose through the ranks of the company's logistics operations. He joined Wal-Mart as an Assistant Director of Transportation and later assumed the positions of Director of Transportation, Vice President of Transportation, Vice President of Distribution, and Senior Vice President of Logistics. In 1993, Lee was promoted to Executive Vice President of Logistics. Lee has been instrumental in continually improving Wal-Mart's distribution network, one of the most technologically advanced and efficient networks in the world.

In 1995, Lee brought his logistics acumen to the position of Executive Vice President of Merchandise. Under his leadership, the merchandise team eliminated excess inventory in the stores and achieved record sales increases with minimal increases in inventory levels, a significant achievement in the retail business.

In 1998, Lee was named President and Chief Executive Officer of the Wal-Mart Stores Division, numbering 2,300 stores at the time. One year later, he became Chief Operating Officer and Vice Chairman of Wal-Mart.

In addition to operational improvements, Lee is recognized for people development, including the launch of a corporate diversity initiative. In 2005, he launched an aggressive corporate environmental sustainability initiative, leveraging Wal-Mart's global reach in three key areas: renewable energy, zero waste, and sustainable products.

Lee serves on the Board of Directors for Wal-Mart Stores, Inc. and the United Negro College Fund.

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