Walmart Inc   (WMT)
Other Ticker:  
    Sector  Retail    Industry Wholesale
   Industry Wholesale
   Sector  Retail

Walmart Inc

Business Description

Wal-Mart operates retail stores in various formats around the world. Wal-Mart is committed to growing by improving the standard of living for our customers throughout the world. We earn the trust of our customers every day by providing a broad assortment of quality merchandise and services at every day low prices (“EDLP”) while fostering a culture that rewards and embraces mutual respect, integrity and diversity. EDLP is our pricing philosophy under which we price items at a low price every day so that our customers trust that our prices will not change erratically under frequent promotional activity.

Our Wal-Mart Stores segment operations are comprised of three business segments. Our Wal-Mart Stores segment is the largest segment of our business. This segment consists of three different retail formats all of which operate in the United States including:

Discount Stores, which average approximately 98,000 square feet in size and offer a wide variety of general merchandise and a limited variety of food products;

Supercenters, which average approximately 187,000 square feet in size and offer a wide variety of general merchandise and a full-line supermarket; and

Neighborhood Markets, which average approximately 43,000 square feet in size and offer a full-line supermarket and a limited variety of general merchandise.

Our SAM’S CLUB segment consists of membership warehouse clubs. SAM’S CLUB is in business for small businesses. Our focus for SAM’S CLUB is to provide exceptional value on brand name merchandise at “member’s only” prices for both business and personal use. Our domestic SAM’S CLUBs average approximately 127,000 square feet in size.

Our International segment consists of retail operations in eight countries and Puerto Rico. The International segment includes several different formats of retail stores and restaurants, including Discount Stores, Supercenters and SAM’S CLUBs that operate outside the United States. Our international units average approximately 85,000 square feet in size. Additionally, we own an unconsolidated 37.8% minority interest in The Seiyu, Ltd. (“Seiyu”), a retailer in Japan.

Competition Our Discount Stores compete with other discount, department, drug, variety and specialty stores and supermarkets, many of which are national chains. Our Supercenters compete with other supercenter-type stores, discount stores, supermarkets and specialty stores, many of which are national or regional chains. We also compete with other retailers for new store sites.

SAM’S CLUBs compete with other warehouse clubs, as well as with discount retailers, retail and wholesale grocers and general merchandise wholesalers and distributors. We also compete with other retailers for desirable new club sites. Our ability to offer low prices and quality merchandise determines our competitive position in the warehouse club industry.

The International operating segment competes with a variety of local, national and international chains in the supermarket, discount, department, drug, variety, specialty and wholesale sectors of the retail market in each of the countries in which we operate and, in Mexico, with local, national and international restaurant chains. Our ability to offer our customers low prices on quality merchandise that offers exceptional value in the International segment determines, to a large extent, our competitive position. In our international units, our ability to effectively operate the food departments has a major impact on the segment’s competitive position in the markets where we operate.

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