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Walmart
Walmart
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Walmart Inc.[a] is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores in the United States and 23 other countries. It is headquartered in Bentonville, Arkansas.[7] The company was founded in 1962 by brothers Sam Walton and James "Bud" Walton in nearby Rogers, Arkansas.[8] It also owns and operates Sam's Club retail warehouses.[9][10]

Key Information

Walmart is the world's largest company by revenue, according to the Fortune Global 500 list in October 2022.[11] Walmart is also the largest private employer in the world, with 2.1 million employees. It is a publicly traded family-owned business (the largest such business in the world), as the company is controlled by the Walton family. Sam Walton's heirs own over 50 percent of Walmart through both their holding company Walton Enterprises and their individual holdings.[12]

Walmart was listed on the New York Stock Exchange in 1972. By 1988, it was the most profitable retailer in the U.S.,[13] and it had become the largest in terms of revenue by October 1989.[14] The company was originally geographically limited to the South and lower Midwest, but it had stores from coast to coast by the early 1990s. Sam's Club opened in New Jersey in November 1989, and the first California outlet opened in Lancaster, in July 1990. A Walmart in York, Pennsylvania, opened in October 1990, the first main store in the Northeast.[15] Walmart has been the subject of extensive criticism and legal scrutiny over its labor practices, environmental policies, animal welfare standards, treatment of suppliers, handling of crime in stores, business ethics, and product safety, with critics alleging that the company prioritizes profits at the expense of social and ethical responsibilities.

Walmart's investments outside the U.S. have seen mixed results. Its operations and subsidiaries in Canada,[16] the United Kingdom,[17] Central America, Chile (Líder), South Africa (Massmart) and China are successful; however, its ventures failed in Germany, Japan, South Korea, Brazil and Argentina.[18][19][20][21]

History

[edit]

1945–1969: Early history

[edit]
Founder Sam Walton
Picture of Sam Walton's original Five and Dime store in Bentonville, Arkansas, now serving as The Walmart Museum.
Sam Walton's original Walton's Five and Dime Store in Bentonville, Arkansas, now serving as The Walmart Museum

In 1945, businessman and former J. C. Penney employee Sam Walton bought a Ben Franklin store branch from the Butler Brothers.[22] His primary focus was selling products at low prices to get higher-volume sales at a lower profit margin, portraying it as a crusade for the consumer. He experienced setbacks because the lease price and branch purchase were unusually high, but he was able to find lower-cost suppliers than those used by other stores and was consequently able to undercut his competitors on pricing.[23] Sales increased 45% in his first year of ownership to US$105,000 in revenue, which increased to $140,000 the next year and $175,000 the year after that. Within the fifth year, the store was generating $250,000 in revenue. The lease then expired for the location and Walton was unable to reach an agreement for renewal, so he opened up a new store at 105 N. Main Street in Bentonville, naming it "Walton's Five and Dime".[23][24] That store is now the Walmart Museum.[25]

Logo used from 1962 to 1964

On July 2, 1962, Walton opened the first Wal-Mart Discount City store at 719 W. Walnut Street in Rogers, Arkansas. Its design was inspired by Ann & Hope, which Walton visited in 1961, as did Kmart founder Harry B. Cunningham.[26][27] The name was derived from FedMart, a chain of discount department stores founded by Sol Price in 1954, whom Walton was also inspired by. Walton stated that he liked the idea of calling his discount chain "Wal-Mart" because he "really liked Sol's FedMart name". The building is now occupied by a hardware store and an antiques mall, while the company's "Store #1" has since expanded to a Supercenter several blocks west at 2110 W. Walnut Street. Within its first five years, the company expanded to 18 stores in Arkansas and reached $9 million in sales.[28] In 1968, it opened its first stores outside Arkansas in Sikeston, Missouri and Claremore, Oklahoma.[29]

1969–1990: Incorporation and growth as a regional power

[edit]
Logo used from 1966 to 1981

The company was incorporated under Delaware General Corporation Law as Wal-Mart, Inc. on October 31, 1969, and changed its name to Wal-Mart Stores, Inc. in 1970. The same year, the company opened a home office and first distribution center in Bentonville, Arkansas. It had 38 stores operating with 1,500 employees and sales of $44.2 million. It began trading stock as a publicly held company on October 1, 1970, and was soon listed on the New York Stock Exchange. The first stock split occurred in May 1971 for $47 per share. By this time, Wal-Mart was operating in five states: Arkansas, Kansas, Louisiana, Missouri, and Oklahoma; it entered Tennessee in 1973 and Kentucky and Mississippi in 1974. As the company moved into Texas in 1975, there were 125 stores with 7,500 employees and total sales of $340.3 million.[29]

Logo used from 1981 to 1992

In the 1980s, Wal-Mart briefly experimented with a precursor to the Supercenter, the Hyper-Mart. Four stores combined features of discount stores, supermarkets, pharmacies, video arcades, and other amenities.[30] Wal-Mart continued to grow rapidly, and by the company's 25th anniversary in 1987, there were 1,198 Wal-Mart stores with sales of $15.9 billion and 200,000 associates.[29] One reason for Wal-Mart's success between 1980 and 2000 is believed to be its contiguous pattern of expansion over time, building new distribution centers in a hub and spoke framework within driving distance of existing Supercenters.[30]

The company's satellite network was also completed in 1987, a $24 million investment linking all stores with two-way voice and data transmissions and one-way video communications with the Bentonville office. At the time, the company was the largest private satellite network, allowing the corporate office to track inventory and sales and to instantly communicate with stores.[31] By 1984, Sam Walton had begun to source between 6% and 40% of his company's products from China.[32] In 1988, Walton stepped down as CEO and was replaced by David Glass.[33] Walton remained as chairman of the board. During this year, the first Wal-Mart Supercenter opened in Washington, Missouri.[34]

With the contribution of its superstores, the company surpassed Toys "R" Us in toy sales in 1998.[35][36]

1990–2005: Retail rise to multinational status

[edit]
Logo used from 1992 to 2008

While it was the third-largest retailer in the United States, Wal-Mart was more profitable than rivals Kmart and Sears by the late 1980s. By 1990, it became the largest U.S. retailer by revenue.[37][38]

Prior to the summer of 1990, Wal-Mart had no presence on the West Coast or in the Northeast (except for a single Sam's Club in New Jersey which opened in November 1989); however, in July and October that year, it opened its first stores in California and Pennsylvania, respectively. By the mid-1990s, it was the most powerful retailer in the U.S. and expanded into Mexico in 1991 and Canada in 1994.[39] Wal-Mart stores opened throughout the rest of the U.S., with Vermont being the last state to get a store in 1995.[40]

The company also opened stores outside North America, entering South America in 1995 with stores in Argentina and Brazil;[41] and Europe in July 1999, buying Asda in the United Kingdom for US$10 billion.[42]

In 1997, Wal-Mart was added to the Dow Jones Industrial Average.[43]

Logo used from 2008 to 2025

In 1998, Wal-Mart introduced the Neighborhood Market concept with three stores in Arkansas.[44] By 2005, estimates indicate that the company controlled about 20% of the retail grocery and consumables business.[45]

In 2000, H. Lee Scott became Wal-Mart's president and CEO as the company's sales increased to $165 billion.[46] In 2002, it was listed for the first time as America's largest corporation on the Fortune 500 list, with revenues of $219.8 billion and profits of $6.7 billion. It has remained there every year except 2006, 2009, and 2012.[47]

In 2005, Wal-Mart reported US$312.4 billion in sales, more than 6,200 facilities around the world—including 3,800 stores in the United States and 2,800 elsewhere, employing more than 1.6 million associates. Its U.S. presence grew so rapidly that only small pockets of the country remained more than 60 miles (97 kilometers) from the nearest store.[48]

As Wal-Mart expanded rapidly into the world's largest corporation, many critics worried about its effect on local communities, particularly small towns with many "mom and pop" stores. There have been several studies on the economic impact of Wal-Mart on small towns and local businesses, jobs, and taxpayers. Kenneth Stone, a professor of economics, found that some small towns can lose almost half of their retail trade within ten years of a Wal-Mart store opening.[49] However, in another study, he compared the changes to what small-town shops had faced in the past—including the development of the railroads, the advent of the Sears Roebuck catalog, and the arrival of shopping malls—and concluded that shop owners who adapt to changes in the retail market can thrive after Wal-Mart arrives.[49] A later study in collaboration with Mississippi State University showed that there are "both positive and negative impacts on existing stores in the area where the new supercenter locates".[50]

In the aftermath of Hurricane Katrina in September 2005, Wal-Mart used its logistics network to organize a rapid response to the disaster, donating $20 million, 1,500 truckloads of merchandise, food for 100,000 meals, and the promise of a job for every one of its displaced workers.[51] An independent study by Steven Horwitz of St. Lawrence University found that Wal-Mart, The Home Depot, and Lowe's made use of their local knowledge about supply chains, infrastructure, decision makers and other resources to provide emergency supplies and reopen stores well before the Federal Emergency Management Agency (FEMA) began its response.[52] While the company was overall lauded for its quick response amidst criticism of FEMA, several critics were quick to point out that there still remained issues with the company's labor relations.[53]

In 2006, Charles Fishman published The Wal-Mart Effect, examining the operation of Wal-Mart's supply chain. His book caught the attention of the press and the public. Fishman's case studies illustrate Wal-Mart's drive to lower costs and achieve greater efficiency and suggest that it may have significant upstream effects. Since Fishman's book was published, Wal-Mart has more than doubled in size. Further research on Wal-Mart's role in the food supply chain has tended to be limited and anecdotal.[30][54]

2005–2010: Initiatives

[edit]

Environmental initiatives

[edit]
Aerial view of dozens of solar panels distributed around the roof of a Walmart store
Solar modules mounted on a Walmart Supercenter in Caguas, Puerto Rico (Store #2449)

In November 2005, Wal-Mart announced several environmental measures to increase energy efficiency and improve its overall environmental record, which had previously been lacking.[55] The company's primary goals included spending $500 million a year to increase fuel efficiency in Wal-Mart's truck fleet by 25% over three years and double it within ten; reduce greenhouse gas emissions by 20% in seven years; reduce energy use at stores by 30%; and cut solid waste from U.S. stores and Sam's Clubs by 25% in three years. CEO Lee Scott said that Wal-Mart's goal was to be a "good steward of the environment" and ultimately use only renewable energy sources and produce zero waste.[56] The company also designed three new experimental stores with wind turbines, photovoltaic solar panels, biofuel-capable boilers, water-cooled refrigerators, and xeriscape gardens.[57] In this time, Wal-Mart also became the biggest seller of organic milk and the biggest buyer of organic cotton in the world, while reducing packaging and energy costs.[55] In 2007, the company worked with outside consultants to discover its total environmental impact and find areas for improvement. Wal-Mart created its own electric company in Texas, named Texas Retail Energy, which planned to supply its stores with cheap power purchased at wholesale prices. Through this new venture, the company expected to save $15 million annually and also to lay the groundwork and infrastructure to sell electricity to Texas consumers in the future.[58]

Branding and store design changes

[edit]

In 2006, Wal-Mart announced that it would remodel its U.S. stores to help it appeal to a wider variety of demographics, including more affluent shoppers. As part of the initiative, the company launched a new store in Plano, Texas, that included high-end electronics, jewelry, expensive wines and a sushi bar.[59]

On September 12, 2007, Wal-Mart introduced new advertising with the slogan, "Save money. Live better.", replacing the previous slogan "Always Low Prices, Always", which it had used since 1988. Global Insight, which conducted the research that supported the ads, found that Wal-Mart's price level reduction resulted in savings for consumers of $287 billion in 2006, which equated to $957 per person or $2,500 per household (up 7.3% from the 2004 savings estimate of $2,329).[60]

On June 30, 2008, Wal-Mart removed the hyphen from its logo and replaced the star with a Spark symbol.[61] The store branding became "Walmart", with the corporate name remaining with the hyphen as "Wal-Mart". The new logo received mixed reviews from design critics who questioned whether the new logo was as bold as those of competitors, such as the Target bullseye, or as instantly recognizable as the previous company's logo, which was used for 18 years.[62] The new logo[63] made its debut on the company's website on July 1, 2008, and its U.S. locations updated store logos in the fall of 2008.[64] Walmart Canada started to adopt the logo for its stores in early 2009.[65]

Acquisitions and employee benefits

[edit]

On March 20, 2009, Walmart announced that it was paying a combined US$933.6 million in bonuses to every full and part-time hourly worker.[66] This was in addition to $788.8 million in profit sharing, 401(k) pension contributions, hundreds of millions of dollars in merchandise discounts, and contributions to the employees' stock purchase plan.[67] While the economy at large was in an ongoing recession, Walmart reported solid financial figures for the fiscal year ending January 31, 2009, with $401.2 billion in net sales, a gain of 7.2% from the prior year. Income from continuing operations increased 3% to $13.3 billion, and earnings per share rose 6% to $3.35.[68]

On February 22, 2010, the company confirmed it was acquiring video streaming company Vudu, Inc. for an estimated $100 million.[69]

2011–2019

[edit]
A truck converted to run on biofuel

Walmart's truck fleet logs millions of miles each year, and the company planned to double the fleet's efficiency between 2005 and 2015.[70] Fifteen based at Walmart's Buckeye, Arizona, distribution center were converted to run on biofuel from reclaimed cooking grease made during food preparation at Walmart stores.[71]

On November 14, 2012, Walmart launched its first mail subscription service called Goodies. Customers pay a $7 monthly subscription for five to eight delivered food samples each month.[72] The service shut down in late 2013.[73]

In August 2013, the firm announced it was in talks to acquire a majority stake in the Kenya-based supermarket chain, Naivas.[74]

On November 25, 2013, Walmart announced that Doug McMillon, CEO of Walmart International, would replace Mike Duke as Walmart CEO effective on February 1, 2014, becoming the company's fifth chief executive.[75]

In June 2014, some Walmart employees went on strike in major U.S. cities demanding higher wages.[76] In July 2014, American actor and comedian Tracy Morgan launched a lawsuit against Walmart seeking punitive damages over a multi-car pile-up which the suit alleges was caused by the driver of one of the firm's tractor-trailers who had not slept for 24 hours. Morgan's limousine was apparently hit by the trailer, injuring him and two fellow passengers and killing a fourth, fellow comedian James McNair.[77] Walmart settled with the McNair family for $10 million, while admitting no liability.[78] Morgan and Walmart reached a settlement in 2015 for an undisclosed amount,[79] though Walmart later accused its insurers of "bad faith" in refusing to pay the settlement.[80]

In 2015, Walmart was the biggest U.S. commercial producer of solar power with 142 MW capacity, and had 17 energy storage projects.[81][82] This solar was primarily on rooftops, whereas there is an additional 20,000 m2 for solar canopies over parking lots.[83]

Walmart Supercenter in Grundy, Virginia (Store #3303). This store was built as part of a $200 million revitalization project.[84][85] The store was built on top of a two-story parking garage, the only one of its kind in the United States.[86]

On January 15, 2016, Walmart announced it would close 269 stores in 2016, affecting 16,000 workers.[87] Of the stores earmarked for closure, 154 were in the U.S., 95% of which were located, on average, 10 miles from another Walmart store. The 269 stores represented less than 1 percent of global square footage and revenue for the company. The 102 locations of Neighborhood Markets that were formerly or originally planned to be Walmart Express, which had been in a pilot program since 2011 and converted in to Neighborhood Markets in 2014, were included in the closures. Walmart planned to focus on "strengthening Supercenters, optimizing Neighborhood Markets, growing the e-commerce business and expanding pickup services for customers". In fiscal 2017, the company plans to open between 50 and 60 Supercenters, 85 to 95 Neighborhood Markets, 7 to 10 Sam's Clubs, and 200 to 240 international locations.[88] At the end of fiscal 2017, Walmart opened 38 Supercenters and relocated, expanded or converted 21 discount stores into Supercenters, for a total of 59 Supercenters, and opened 69 Neighborhood Markets, 8 Sam's Clubs, and 173 international locations, and relocated, expanded or converted 4 locations for a total of 177 international locations. On August 8, 2016, Walmart announced a deal to acquire e-commerce website Jet.com for US$3.3 billion.[89][90] Jet.com co-founder and CEO Marc Lore stayed on to run Jet.com in addition to Walmart's existing U.S. e-commerce operation. The acquisition was structured as a payout of $3 billion in cash, and an additional $300 million in Walmart stock vested over time as part of an incentive bonus plan for Jet.com executives.[91] On October 19, 2016, Walmart announced it would partner with IBM and Tsinghua University to track the pork supply chain in China using blockchain.[92] The use of blockchain to automate the tracking of the supply chain promises the potential for Walmart to save money and thus increase profits.[93]

On February 15, 2017, Walmart announced the acquisition of Moosejaw, a leading online active outdoor retailer, for approximately $51 million. The acquisition closed on February 13, 2017.[94] On June 16, 2017, Walmart agreed to acquire the men's apparel company Bonobos for $310 million in an effort to expand its fashion holdings.[95] On September 29, 2017, Walmart acquired Parcel, a same-day and last-mile delivery company in Brooklyn.[96] In 2018, Walmart started crowdsourcing delivery services to customers using drivers' private vehicles, under the brand "Spark".[97]

On December 6, 2017, Walmart announced that it would change its corporate name to Walmart Inc. from Wal-Mart Stores, Inc. effective February 1, 2018.[98][99]

On January 11, 2018, Walmart announced that 63 Sam's Club locations would be closing. Some of the stores had already liquidated, without notifying employees; some employees learned by a company-wide email delivered January 11. Walmart said that ten of the stores will become e-commerce distribution centers and employees can reapply to work at those locations. Business Insider magazine calculated that over 11,000 workers would be affected.[100][101] On the same day, Walmart announced that as a result of the new tax law, it would be raising Walmart starting wages, distributing bonuses, expanding its leave policies and contributing toward the cost of employees' adoptions. Doug McMillon, Walmart's CEO, said, "We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders."[102]

It was reported that Walmart is now looking at entering the subscription-video space, hoping to compete with Netflix and Amazon. They have enlisted the help of former Epix CEO, Mark Greenberg, to help develop a low-cost subscription video-streaming service.[103]

On February 26, 2019, Walmart announced that it had acquired Tel Aviv-based product review start-up Aspectiva for an undisclosed sum.[104]

In May 2019, Walmart announced the launch of free one-day shipping on more than 220,000 items with minimum purchase amount of $35.[105]

In September 2019, Walmart made the announcement that it would cease the sale of all e-cigarettes due to "regulatory complexity and uncertainty" over the products. Earlier in 2019, Walmart stopped selling fruit-flavored e-cigarette and had raised the minimum age to 21 for the purchase of products containing tobacco.[106] That same month, Walmart opened its first Health Center, a "medical mall" where customers can purchase primary care services. Prices without insurance were listed, for instance, at $30 for an annual physical and $45 for a counseling session.[107] Continuing with its health care initiative, they opened a 2,600 square feet (240 m2) health and wellness clinic prototype in Springdale, Arkansas just to expand services.[108]

By October 2019, Walmart stopped selling all live fish and aquatic plants.[109]

2020s: Development

[edit]
Signs on a Walmart indicated changes due to the COVID-19 pandemic.

In 2020, the coronavirus (COVID-19) pandemic forced temporary measures such as store closures, limited store occupancy, large-scale employee dismissal, and enforcement of social distancing protocols. Store hours were adjusted to allow cleaning and stocking. Limits on items were placed due to the rise of panic buying.

During the pandemic, Walmart changed some employee benefits. Employees were able to decide to stay home and take unpaid leave if they felt unable to work or uncomfortable coming to work. Employees who contracted the virus would receive "up to two weeks of pay". After two weeks, hourly associates who were unable to return to work were eligible for up to 26 weeks in pay.[110] Walmart paid pandemic bonuses of $428 million. People who did part-time or temporary work received a bonus of $150 while those who worked full-time received a bonus of $300.[111] Starting in July 2020, customers were required to wear masks in all stores.[112] By February 2022, the COVID restrictions such as the mask requirements were lifted.[113]

In the first quarter of 2020, consumers responded to COVID by shopping less frequently (5.6% fewer transactions), and buying more when they did shop (16.5%).[114] As people shifted from eating out to at home,[30] net sales increased by 11%, while online sales rose 74%. Although Walmart experienced a 5.5% increase in operating expenses, its net income increased by 4%.[114] In the third quarter of 2020, Walmart reported revenue of $135 billion, representing a year-on-year increase of 5%.[115]

In December 2020, Walmart launched a new service, Carrier Pickup, that allows customers to schedule returns.[116] In January 2021, the company launced a fintech startup, with venture partner Ribbit Capital, to provide financial products for consumers and employees.[117] In February, Walmart acquired technology from Thunder Industries, which uses automation to create digital ads, to expand its online marketing capability.[118] In May, Walmart acquired the Israeli startup Zeekit for $200 million. Zeekit uses AI to allow customers to try on clothing via a virtual platform.[119] In August, Walmart announced it would open its Spark crowdsource delivery to other businesses as a white-label service, competing with Postmates and online food ordering delivery companies.[97]

In June 2022, Walmart announced it would acquire Memomi, an AR optical tech company.[120] In August, Walmart announced it would acquire Volt Systems, a vendor management and product tracking software company.[121] Walmart announced it was partnering with Paramount to offer Paramount+ content to its Walmart+ subscribers in a bid to better compete with Amazon.[122] In September 2025, Walmart added Peacock to Walmart+, giving consumers an option between Peacock and Paramount+ and switch between the two services every 90 days.[123]

In August 2022, Walmart announced that locations were not going back to 24 hours with most stores now open between 6am and 11pm.[124] In January 2023, Walmart announced it would raise its minimum wage for hourly workers from $12 to $14 an hour. Approximately 340,000 employees were expected to receive a raise, effective in March, and Walmart's U.S. average wage was expected to be over $17.50. The company announced it would be adding college degrees and certificates to its Live Better U program.[125]

In February 2023, Walmart announced it had made $611 billion in sales in the previous financial year, up 7%. Profits were up, almost doubled from the previous year.[126] In April, the company announced it would add electric vehicle charging stations at thousands of stores by 2030, on top of the 1,300 existing stations in operation.[127]

In January 2024, Walmart announced it would open over 150 stores in the U.S. over the next five years while remodeling 650. This was a reversal for the company, which had been in a period of de-emphasizing new store openings as it focused on online competition, in particular from Amazon, and came amid an overall greater industry focus on traditional retail in the post-pandemic area.[128][129] In February, the company announced that its "Project Gigaton" initiative begun in 2017 to reduce its Scope 3 emissions from suppliers by 1 billion metric tons by 2030 had reached its goal, and 75% of net sales in fiscal year 2023 were from suppliers participating in the initiative.[130] Walmart reported they were planning to remove the self checkout from some stores due to feedback.[131]

In August 2024, Walmart announced a new service to transport goods from Asia to U.S. and compete more effectively with Amazon.[132] In November, Walmart announced it was ending its diversity, equity, and inclusion (DEI) programs, in addition to delisting products designed for transgender minors such as breast binders.[133]

In January 2025, Walmart redesigned its logo; it largely stayed the same except the word was made a little bigger, the background darker blue, and the spark slightly bigger.[134]

Acquisitions and employee benefits

[edit]

In February 2024, the company announced that managers would be given stock grants of up to $20,000. Walmart announced a 3–1 stock split to make it easier for employees to buy stock. Such rewards for rank-and-file employees are rare in the industry, which analysts say could generate $20 billion in revenue for the average household. The company raised the starting base salary for store managers and increased the bonus plan of up to 200 per cent of their regular salaries.[135]

Walmart entered into an agreement to acquire Vizio for $2.3 billion with the intention to expand its advertising sales in video content that streams for on Vizio devices. Following regulatory approval, the acquisition was finalized on December 3.[136]

Operating divisions

[edit]
Map of countries with Walmart stores
Legend:
  Current market locations
  Former market locations
  No current market locations

As of 2016, Walmart's operations are organized into four divisions: Walmart U.S., Walmart International, Sam's Club and Global eCommerce.[137] In the United States, Walmart's stores operate in four formats: discount, Supercenters, Neighborhood Markets, and Sam's Club stores.[30] Walmart International stores include additional formats such as supermarkets, hypermarkets, cash-and-carry stores, home improvement, specialty electronics, restaurants, apparel stores, drugstores, and convenience stores.[138]

Walmart U.S.

[edit]

Walmart U.S. is the company's largest division, accounting for US$331.666 billion, or 65 percent of total sales, for fiscal 2019.[139][140] It consists of three retail formats that have become commonplace in the United States: Supercenters, Discount Stores, Neighborhood Markets, and other small formats. The discount stores sell a variety of mostly non-grocery products, though emphasis has now shifted towards supercenters, which include more groceries. As of October 31, 2022, there are a total of 4,720 Walmart U.S. stores.[141][142] In the United States, 90 percent of the population resides within 10 miles of a Walmart store.[143] The total number of Walmart U.S. stores and Sam's Clubs combined is 5,320.[141][142] The president and CEO of Walmart U.S. is John Furner.[144][145]

Walmart Supercenter

[edit]
A Walmart Supercenter store
A Walmart Supercenter in Windham, Connecticut (Store #2022)

Walmart Supercenters, branded simply as "Walmart", are hypermarkets with sizes varying from 69,000 to 260,000 square feet (6,400 to 24,200 square meters), but averaging about 178,000 square feet (16,500 square meters).[146] These stock general merchandise and a full-service supermarket, including meat and poultry, baked goods, delicatessen, frozen foods, dairy products, garden produce, and fresh seafood. Many Walmart Supercenters also have a garden center, pet shop, pharmacy, Tire & Lube Express, optical center, one-hour photo processing lab, portrait studio, and numerous alcove shops, such as cellular phone stores, hair and nail salons, video rental stores, local bank branches (such as Woodforest National Bank branches in newer locations), and fast food outlets.

Many Walmart Supercenters currently feature McDonald's or Subway restaurants. In some Canadian locations, Tim Hortons were opened. Recently, in several Supercenters, like the Tallahassee, Florida and the Palm Desert, California locations, Walmart added Burger King to their locations, and the location in Glen Burnie, Maryland, due to its past as a hypermarket called Leedmark, boasts an Auntie Anne's and an Italian restaurant. Some Walmart locations in Canada have Axess Law locations, Mary Brown's, Burger King and McDonald's, and Atlantic Lottery Corporation locations in the Atlantic region. Some U.S. locations have Wendy's, Domino's, Taco Bell, Claire's, and small arcades called GamePlay. Very few U.S. locations have KFC, Hardee's, Papa John's, Dairy Queen, Little Caesars, and A&W Restaurants.

Some locations also have fuel stations which sell gasoline distributed by Murphy USA (which spun off from Murphy Oil in 2013), Sunoco ("Optima"), the Tesoro Corporation ("Mirastar"), USA Gasoline, and even now Walmart-branded gas stations.[147]

The first Supercenter opened in Washington, Missouri, in 1988. A similar concept, Hypermart USA, had opened a year earlier in Garland, Texas. All Hypermart USA stores were later closed or converted into Supercenters.

As of October 31, 2022, there were 3,572 Walmart Supercenters in 49 of the 50 U.S. states, the District of Columbia, and Puerto Rico.[141][142] Hawaii is the only state to not have a Supercenter location. The largest Supercenter in the world, covering 260,000 square feet (24,000 square meters) on two floors, is located in Crossgates Commons in Albany, New York.[148]

A typical supercenter sells approximately 120,000 items, compared to the 35 million products sold in Walmart's online store.[149]

The Walmart Supercenter logo used in stores that opened from 2007-2008.

The "Supercenter" name has since been phased out, with these stores now simply referred to as "Walmart", since the company introduced the new Walmart logo in 2008. However, the branding is still used in Walmart's Canadian stores (spelled as "Supercentre" in Canadian English).[150]

Walmart Discount Store

[edit]
The exterior of a Walmart Discount Store in Charlotte, North Carolina
The exterior of a Walmart Discount Store in Charlotte, North Carolina (Store #1821)

Walmart Discount Stores, also branded as simply "Walmart", are discount department stores with sizes varying from 30,000 to 221,000 square feet (2,800 to 20,500 square meters), with the average store covering 105,000 square feet (9,800 square meters).[146] They carry general merchandise and limited groceries. Some newer and remodeled discount stores have an expanded grocery department, similar to Target's PFresh department. Many of these stores also feature a garden center, pharmacy, Tire & Lube Express, optical center, one-hour photo processing lab, portrait studio, a bank branch, a cell phone store, and a fast food outlet. Some also have gasoline stations.[147] Discount Stores were Walmart's original concept, though they have since been surpassed by Supercenters.[30]

In 1990, Walmart opened its first Bud's Discount City location in Bentonville. Bud's operated as a closeout store, much like Big Lots. Many locations were opened to fulfill leases in shopping centers as Walmart stores left and moved into newly built Supercenters. All of the Bud's Discount City stores had closed or converted into Walmart Discount Stores by 1997.[151]

At its peak in 1996, there were 1,995 Walmart Discount Stores;[152] as of October 31, 2022, that number was dropped to 365.[141][142]

Walmart Neighborhood Market

[edit]
A 24-hour Walmart Neighborhood Market in Valdosta, Georgia (Store #6732)

Walmart Neighborhood Market, former also known as "Neighborhood Market by Walmart" or informally known as "Neighborhood Walmart",[153] is Walmart's chain of stores ranging from 28,000 to 65,000 square feet (2,600 to 6,000 square meters) and averaging about 42,000 square feet (3,900 square meters), about a fifth of the size of a Walmart Supercenter.[146][154] The first Walmart Neighborhood Market opened ten years after the first Supercenter opened, but Walmart did not heavily focus on this model until the 2010s.[155]

The stores predominantly sells groceries, but also features a modest amount of household items and even general merchandise, in a format of a general stores. The focus on three of Walmart's major sales categories: groceries, which account for about 55 percent of the company's revenue,[156][157] pharmacy, and, at some stores, fuel.[158] For groceries and consumables, the stores sell fresh produce, deli and bakery items, prepared foods, meat, dairy, organic, general grocery and frozen foods, in addition to cleaning products and pet supplies.[154][159] Some stores offer wine and beer sales[154] and drive-through pharmacies. Some stores, such as one at Midtown Center in Bentonville, Arkansas, offer made-to-order pizza with a seating area for eating.[160] Customers can also use Walmart's site-to-store operation and pick up online orders at Walmart Neighborhood Market stores just like the Supercenters and Discount Stores[161]

Products at Walmart Neighborhood Market stores have the same prices as those at Walmart's larger supercenters. A Moody's Investors Service analyst said the wider company's pricing structure gives the chain of grocery stores a "competitive advantage" over competitors Whole Foods Market, Kroger and Trader Joe's.[158]

Neighborhood Market stores expanded slowly at first as a way to fill gaps between Walmart Supercenters and Discount Stores in existing markets. In its first 12 years, the company opened about 180 Walmart Neighborhood Markets. By 2010, Walmart said it was ready to accelerate its expansion plans for the grocery stores.[162] Similar to the Supercenter models, the Neighborhood Market branded had phased out overtime, with several stores now adopting the Walmart Market branding, with the name of the municipality put with "market". As of October 31, 2022, there were 682 Walmart Neighborhood Markets,[141][142] each employing between 90 and 95 full-time and part-time workers.[163] The total number of Neighborhood Markets and other small formats combined is 783.

Former stores and concepts

[edit]
A Walmart Neighborhood Market originally planned to be a Walmart Express in Alma, Georgia in September 2015 (Store #4229). This location closed in 2016 as part of a plan to close 269 stores globally.

Walmart opened Supermercado de Walmart locations to appeal to Hispanic communities in the United States.[164] The first one, a 39,000-square-foot (3,600-square-meter) store in the Spring Branch area of Houston, opened on April 29, 2009.[165] The store was a conversion of an existing Walmart Neighborhood Market.[166] In 2009, another Supermercado de Walmart opened in Phoenix, Arizona.[167] Both locations closed in 2014.[168] In 2009, Walmart opened "Más Club", a warehouse retail operation patterned after Sam's Club. Its lone store also closed in 2014.[165]

Walmart Express was a chain of smaller discount stores with a range of services from groceries to check cashing and gasoline service. The concept was focused on small towns deemed unable to support a larger store and large cities where space was at a premium. Walmart planned to build 15 to 20 Walmart Express stores, focusing on Arkansas, North Carolina, and Chicago, by the end of its fiscal year in January 2012. As of September 2014, Walmart re-branded all 22[169] of its Express format stores to Neighborhood Markets in an effort to streamline its retail offer. It continued to open new Express stores under the Neighborhood Market name. As of October 31, 2022, there were 101 small-format stores in the United States. These include 92 other small formats, 8 convenience stores and 1 pickup location.[141][142] On January 15, 2016, Walmart announced that it would be closing 269 stores globally, including the 102 Neighborhood Markets that were formerly or originally planned to be Express stores.[170]

Between 2002 and 2022, Walmart owned the Amigo supermarkets chain in Puerto Rico. In 2022, Walmart announced that it would sell its Amigo stores to Pueblo Inc. and focus on modernizing its 18 Supercenter and Division 1 formats and seven Sam's Clubs stores.[171]

Initiatives

[edit]

In September 2006, Walmart announced a pilot program to sell generic drugs at $4 per prescription. The program was launched at stores in the Tampa, Florida, area, and by January 2007 had been expanded to all stores in Florida. While the average price of generics is $29 per prescription, compared to $102 for name-brand drugs, Walmart maintains that it is not selling at a loss, or providing them as an act of charity—instead, they are using the same mechanisms of mass distribution that it uses to bring lower prices to other products.[172] Many of Walmart's low cost generics are imported from India, where they are made by drug makers that include Ranbaxy Laboratories and Cipla.[173]

On February 6, 2007, the company launched a "beta" version of a movie download service, which sold about 3,000 films and television episodes from all major studios and television networks.[174] The service was discontinued on December 21, 2007, due to low sales.[175]

In 2008, Walmart started a pilot program in the small grocery store concept called Marketside in the metropolitan Phoenix, Arizona area. The four stores closed in 2011.[176]

A Walmart Pickup location in Canada

In 2015, Walmart began testing a free grocery pickup service, allowing customers to select products online and choose their pickup time. At the store, a Walmart employee loads the groceries into the customer's car. As of December 17, 2017, the service is available in 39 U.S. states.[177]

In May 2016, Walmart announced a change to ShippingPass, its three-day shipping service, and that it will move from a three-day delivery to two-day delivery to remain competitive with Amazon.[178] Walmart priced it at 49 dollars per year, compared to Amazon Prime's 99-dollar-per-year price.[179][180]

In June 2016, Walmart and Sam's Club announced that they would begin testing a last-mile grocery delivery that used services including Uber, Lyft, and Deliv, to bring customers' orders to their homes. Walmart customers would be able to shop using the company's online grocery service at grocery.walmart.com, then request delivery at checkout for a small fee. The first tests were planned to go live in Denver and Phoenix.[181] Walmart announced on March 14, 2018, that it would expand online delivery to 100 metropolitan regions in the United States, the equivalent of 40 percent of households, by the end of the year of 2018.[182]

Walmart's Winemakers Selection private label wine was introduced in June 2018 in about 1,100 stores. The wine, from domestic and international sources, was described by Washington Post food and wine columnist Dave McIntyre as notably good for the inexpensive ($11 to $16 per bottle) price level.[183]

The Walmart+ logo used since 2020, still in use despite the introduction of the new wordmark and Spark symbol.
The Walmart+ logo used since 2025, so far it has only been used in a few promo images on the Walmart website and has yet to replace the 2020 logo.

In October 2019, Walmart announced that customers in 2,000 locations in 29 states can use the grocery pickup service for their adult beverage purchases. Walmart will also deliver adult beverages from nearly 200 stores across California and Florida.[184]

In February 2020, Walmart announced a new membership program called, "Walmart+" to better compete with Amazon Prime. The news came shortly after Walmart announced the discontinuation of its personal shopping service, Jetblack.[185][186]

Numbers of stores by state

[edit]

Locations as of October 1, 2022

State Supercenters Discount
Stores
Neighborhood
Markets
Amigos Sam's
Clubs
Other
Pharmacy
Formats
Total
stores
Alabama[187] 101 1 28 13 1 144
Alaska[188] 7 2 9
Arizona[189] 84 2 26 12 124
Arkansas[190] 76 5 33 11 8 133
California[191] 144 68 66 30 1 309
Colorado[192] 70 4 14 17 105
Connecticut[193] 12 21 1 34
Delaware[194] 6 3 1 10
District of Columbia[195] 3 3
Florida[196] 232 9 98 46 2 387
Georgia[197] 154 2 31 24 4 215
Hawaii[198] 10 2 12
Idaho[199] 23 3 1 27
Illinois[200] 139 15 5 25 184
Indiana[201] 97 6 9 13 2 127
Iowa[202] 58 2 9 69
Kansas[203] 58 2 14 9 83
Kentucky[204] 77 7 7 9 1 101
Louisiana[205] 88 2 33 14 1 138
Maine[206] 19 3 3 25
Maryland[207] 31 16 11 2 60
Massachusetts[208] 27 21 48
Michigan[209] 90 3 23 1 117
Minnesota[210] 65 3 12 80
Mississippi[211] 65 3 10 7 1 86
Missouri[212] 112 9 16 19 156
Montana[213] 14 2 16
Nebraska[214] 35 7 5 47
Nevada[215] 30 2 11 7 50
New Hampshire[216] 19 7 2 28
New Jersey[217] 35 27 8 70
New Mexico[218] 35 2 9 7 53
New York[219] 82 16 1 12 111
North Carolina[220] 143 6 43 22 214
North Dakota[221] 14 3 17
Ohio[222] 138 5 27 170
Oklahoma[223] 81 7 33 13 134
Oregon[224] 29 7 9 45
Pennsylvania[225] 116 20 24 160
Puerto Rico[226] 13 5 11 7 36
Rhode Island[227] 5 4 9
South Carolina[228] 83 26 13 122
South Dakota[229] 15 2 17
Tennessee[230] 117 1 18 14 150
Texas[231] 391 18 97 82 5 593
Utah[232] 41 10 8 59
Vermont[233] 3 3 6
Virginia[234] 110 4 20 15 149
Washington[235] 52 9 4 65
West Virginia[236] 38 5 1 44
Wisconsin[237] 83 4 2 10 99
Wyoming[238] 12 2 14

Walmart International

[edit]

As of October 31, 2022, Walmart's international operations comprised 5,266 stores[141][142] and 800,000 workers in 23 countries outside the United States.[239] There are wholly owned operations in Argentina, Brazil, Canada, and the UK. With 2.2 million employees worldwide, the company is the largest private employer in the U.S. and Mexico, and one of the largest in Canada.[5] In fiscal 2019 Walmart's international division sales were US$120.824 billion, or 23.7 percent of total sales.[139][140] International retail units range from 1,400 to 186,000 square feet (130 to 17,280 square meters), while wholesale units range from 24,000 to 158,000 square feet (2,200 to 14,700 square meters).[146] Kathryn McLay is the president and CEO of Walmart International.[240][145]

Central America

[edit]

Walmart also owns 51 percent of the Central American Retail Holding Company (CARHCO), which, as of October 31, 2022, consists of 868 stores, including 263 stores in Guatemala (under the Paiz, Walmart Supercenter, Despensa Familiar, and Maxi Dispensa banners),[141][142] 102 stores in El Salvador (under the Despensa Familiar, La Despensa de Don Juan, Walmart Supercenter, and Maxi Despensa banners),[141][142] 111 stores in Honduras (including the Paiz, Walmart Supercenter, Dispensa Familiar, and Maxi Despensa banners),[141][142] 102 stores in Nicaragua (including the Pali, La Unión, Maxi Pali, and Walmart Supercenter banners),[141][142] and 290 stores in Costa Rica (including the Maxi Pali, Mas X Menos, Walmart Supercenter, and Pali banners[141][142]).[241]

Chile

[edit]

In January 2009, the company acquired a controlling interest in the largest grocer in Chile, Distribución y Servicio D&S SA.[242][243] In 2010, the company was renamed Walmart Chile.[244] As of October 31, 2022, Walmart Chile operates around 384 stores under the banners Lider, Express de Lider, Superbodega Acuenta, and Central Mayorista.[141][142]

Mexico

[edit]
Walmart in Mexico

Walmart opened its first international store in Mexico in 1991.[30] As of October 31, 2022, Walmart's Mexico division, the largest outside the U.S., consisted of 2,804 stores.[141][142] Walmart in Mexico operates Walmart Supercenter, Sam's Club, Bodega Aurrera, Mi Bodega Aurrera, Bodega Aurrera Express and Walmart Express.[142]

Canada

[edit]
Walmart Supercentre in Richmond Hill, Ontario, Canada in September 2017

Walmart has operated in Canada since it acquired 122 stores comprising the Woolco division of Woolworth Canada, Inc on January 14, 1994.[245] As of October 31, 2022, it operates 402 locations (including 343 supercentres and 59 discount stores)[141][142] and, as of June 2015, it employs 89,358 people, with a local home office in Mississauga, Ontario.[246] Walmart Canada's first three Supercentres (spelled in Canadian English) opened in November 2006 in Ancaster, London, and Stouffville, Ontario.[247]

In 2010, approximately one year after its incorporation of Schedule 2 (foreign-owned, deposit-taking) of Canada's Bank Act,[248] Walmart Canada Bank was introduced with the launch of the Walmart (Canada) Rewards MasterCard.[249] Less than ten years later, however, on May 17, 2018, Wal-Mart Canada announced it had reached a definitive agreement to sell Wal-Mart Canada Bank to First National co-founder Stephen Smith and private equity firm Centerbridge Partners, L.P., on undisclosed financial terms, though it added that it would still be issuer of the Walmart (Canada) Rewards MasterCard.[250]

On April 1, 2019, Centerbridge Partners, L.P. and Stephen Smith jointly announced the closing of the previously announced acquisition of Wal-Mart Canada Bank and that it was to be renamed Duo Bank of Canada, to be styled simply as Duo Bank.[251][252] Though exact ownership percentages were never revealed in either company announcement, it has also since been revealed that Duo Bank was reclassified as a Schedule 1 (domestic, deposit-taking)[253][254] federally chartered bank of the Bank Act in Canada from the Schedule 2 (foreign-owned or -controlled, deposit-taking)[254] that it had been, which indicates that Stephen Smith, as a noted Canadian businessman, is in a controlling position.

Africa

[edit]

On September 28, 2010, Walmart announced it would buy Massmart Holdings Ltd. of Johannesburg, South Africa in a deal worth over US$4 billion giving the company its first footprint in Africa.[255] As of October 31, 2022, it has 411 stores, including 361 stores in South Africa (under the banners Game Foodco, CBW, Game, Builders Express, Builders Warehouse, Cambridge, Rhino, Makro, Builders Trade Depot, Jumbo, and Builders Superstore),[141][142] 11 stores in Botswana (under the banners CBW, Game Foodco, and Builders Warehouse),[141][142] 4 stores in Ghana (under the Game Foodco banner),[141][142] 4 stores in Kenya (under the banners Game Foodco and Builders Warehouse),[141][142] 3 stores in Lesotho (under the banners CBW and Game Foodco),[141] 2 stores in Malawi (under the Game banner),[141][142] 6 stores in Mozambique (under the banners Builders Warehouse, Game Foodco, CBW, and Builders Express),[141][142] 5 stores in Namibia (under the banners Game Foodco and Game),[141][142] 5 stores in Nigeria (under the banners Game and Game Foodco),[141][142] 1 store in Eswatini (under the CBW banner),[141][142] 1 store in Tanzania (under the Game Foodco banner),[141][142] 1 store in Uganda (under the Game banner),[141][142] and 7 stores in Zambia (under the banners CBW, Game Foodco, Builders Warehouse, and Builders Express).[141][142]

China

[edit]
An aisle in a Walmart store in China
A Walmart in Hangzhou, China in February 2017

Walmart has joint ventures in China and several majority-owned subsidiaries. As of October 31, 2022, Walmart China (沃尔玛 Wò'ērmǎ)[256] operates 369 stores under the Walmart Supercenter and Sam's Club banners.[141][142]

In February 2012, Walmart announced that the company raised its stake to 51 percent in Chinese online supermarket Yihaodian to tap rising consumer wealth and help the company offer more products. Walmart took full ownership in July 2015.[257]

In October 2016, Walmart launched the Food Safety Collaboration Center in Beijing, China. The goal of this investment is to collaborate with the local government, promote the use of blockchain technology in tracking pork supply in China, and enhance the transparency and safety of the food supply chain.[258]

In December 2021, the Chinese Communist Party's Central Commission for Discipline Inspection warned Walmart about removing products made from inputs from Xinjiang in response to the Uyghur Forced Labor Prevention Act.[259]

India

[edit]
A Best Price Modern Wholesale store in Hyderabad

In November 2006, the company announced a joint venture with Bharti Enterprises to operate in India. As foreign corporations were not allowed to enter the retail sector directly, Walmart operated through franchises and handled the wholesale end of the business.[260] The partnership involved two joint ventures—Bharti manages the front end, involving opening of retail outlets while Walmart takes care of the back end, such as cold chains and logistics. Walmart operates stores in India under the name Best Price Modern Wholesale.[261] The first store opened in Amritsar on May 30, 2009. On September 14, 2012, the Government of India approved 51 percent FDI in multi-brand retails, subject to approval by individual states, effective September 20, 2012.[262][263] Scott Price, Walmart's president and CEO for Asia, told The Wall Street Journal that the company would be able to start opening Walmart stores in India within two years.[264] Expansion into India faced some significant problems. In November 2012, Walmart admitted to spending US$25 million lobbying the Indian National Congress;[265] lobbying is conventionally considered bribery in India.[266] Walmart is conducting an internal investigation into potential violations of the Foreign Corrupt Practices Act.[267] Bharti Walmart suspended a number of employees, rumored to include its CFO and legal team, to ensure "a complete and thorough investigation".[268] In October 2013, Bharti and Walmart separated to pursue business independently.[269]

On May 9, 2018, Walmart announced its intent to acquire a 77% majority stake in the Indian e-commerce company Flipkart for $16 billion, in a deal that was completed on August 18, 2018.[270][271][272] As of October 31, 2022, there are 28 Best Price Modern Wholesale locations.[141][142]

Setbacks

[edit]

In the 1990s, Walmart tried with a large financial investment to get a foothold in both German and Indonesian retail markets.

Walmart entered Indonesia with the opening of stores in Lippo Supermall (now known as Supermal Karawaci) and Megamall Pluit (now known as Pluit Village) respectively, under a joint-venture agreement with local conglomerate Lippo Group. Both stores closed down due to the 1997 Asian financial crisis.[273][274][275]

In Germany, Walmart took over supermarket chain Wertkauf with its 21 stores for DM750 million in 1997[276] and the following year Walmart acquired 74 InterSPAR stores for DM1.3 billion.[277][278] The German market at this point was an oligopoly with high competition among companies which used a similar low price strategy as Walmart. As a result, Walmart's low price strategy yielded no competitive advantage. Walmart's corporate culture was not viewed positively among employees and customers, particularly Walmart's "statement of ethics", which attempted to restrict relationships between employees, a violation of articles 1 and 2 of German constitution. The statement also violated German labor laws and led to a public discussion in the media, resulting in a bad reputation among customers.[279][280] In July 2006, Walmart announced its withdrawal from Germany due to sustained losses. The stores were sold to the German company Metro during Walmart's fiscal third quarter.[281][282] Walmart did not disclose its losses from its German investment, but they were estimated to be around 3 billion.[283]

A Hiper Bompreço in Natal, Brazil in May 2008

In 2004, Walmart bought the 118 stores in the Bompreço supermarket chain in northeastern Brazil. In late 2005, it took control of the Brazilian operations of Sonae Distribution Group through its new subsidiary, WMS Supermercados do Brasil, thus acquiring control of the Nacional and Mercadorama supermarket chains, the leaders in the Rio Grande do Sul and Paraná states, respectively. None of these stores were rebranded. As of January 2014, Walmart operated 61 Bompreço supermarkets, 39 Hiper Bompreço stores. It also ran 57 Walmart Supercenters, 27 Sam's Clubs, and 174 Todo Dia stores. With the acquisition of Bompreço and Sonae, by 2010, Walmart was the third-largest supermarket chain in Brazil, behind Carrefour and Pão de Açúcar.[284]

Walmart Brasil, the operating company, has its head office in Barueri, São Paulo State, and regional offices in Curitiba, Paraná; Porto Alegre, Rio Grande do Sul; Recife, Pernambuco; and Salvador, Bahia.[285] Walmart Brasil operates under the banners Todo Dia, Nacional, Bompreço, Walmart Supercenter, Maxxi Atacado, Hipermercado Big, Hiper Bompreço, Sam's Club, Mercadorama, Walmart Posto (Gas Station), Supermercado Todo Dia, and Hiper Todo Dia. Recently, the company started the conversion process of all Hiper Bompreço and Big stores into Walmart Supercenters and Bompreço, Nacional and Mercadorama stores into the Walmart Supermercado brand.

Since August 2018, Walmart Inc. only holds a minority stake in Walmart Brasil, which was renamed Grupo Big on August 12, 2019,[286] with 20% of the company's shares, and private equity firm Advent International holding 80% ownership of the company.[287] On March 24, 2021, it was announced that Carrefour would be acquiring Grupo Big.[288]

A Walmart Supercenter in Argentina in February 2019

Walmart Argentina was founded in 1995 and operates stores under the banners Walmart Supercenter, Changomas, Mi Changomas, and Punto Mayorista. On November 6, 2020, it was announced that Walmart has sold its Argentine operations to Grupo de Narváez and renamed Hiper Changomas.[289]

ASDA Supermarket in Fife, Scotland

Walmart's UK subsidiary Asda (which retained its name after being acquired by Walmart) is based in Leeds and accounted for 42.7 percent of 2006 sales of Walmart's international division. In contrast to the U.S. operations, Asda was originally and still remains primarily a grocery chain, but with a stronger focus on non-food items than most UK supermarket chains other than Tesco. In 2010 Asda acquired stores from Netto UK. In addition to small suburban Asda Supermarkets,[142] larger stores are branded Supercentres.[142] Other banners include Asda Superstores, Asda Living, and Asda Petrol Fueling Station.[141][142][290] In July 2015, Asda updated its logo featuring the Walmart Asterisks behind the first 'A' in the Logo. In May 2018, Walmart announced plans to sell Asda to rival Sainsbury's for $10.1 billion. Under the terms of the deal, Walmart would have received a 42% stake in the combined company and about £3 billion in cash.[291] However, in April 2019, the United Kingdom's Competition and Markets Authority blocked the proposed sale of Asda to Sainsburys.[292]

On October 2, 2020, it was announced that Walmart will sell a majority stake of Asda to a consortium of Zuber and Mohsin Issa (the owners of EG Group) and private equity firm TDR Capital for £6.8bn, pending approval from the Competition and Markets Authority. The sale was later approved in February 2021.[293]

In Japan, Walmart owned 100 percent of Seiyu (西友 Seiyū) as of 2008.[281][294] It operates under the Seiyu (Hypermarket), Seiyu (Supermarket), Seiyu (General Merchandise), Livin, and Sunny banners.[141][142] On November 16, 2020, Walmart announced they would be selling 65% of their shares in the company to the private-equity firm KKR in a deal valuing 329 stores and 34,600 employees at $1.6 billion. Walmart is supposed to retain 15% and a seat on the board, while a joint-venture between KKR and Japanese company Rakuten Inc. will receive 20%.[295]

Corruption charges

[edit]

An April 2012 investigation by The New York Times reported the allegations of a former executive of Walmart de Mexico that, in September 2005, the company had paid bribes via local fixers to officials throughout Mexico in exchange for construction permits, information, and other favors, which gave Walmart a substantial advantage over competitors.[296] Walmart investigators found credible evidence that Mexican and American laws had been broken. Concerns were also raised that Walmart executives in the United States had "hushed up" the allegations. A follow-up investigation by The New York Times, published December 17, 2012, revealed evidence that regulatory permission for siting, construction, and operation of nineteen stores had been obtained through bribery. There was evidence that a bribe of US$52,000 was paid to change a zoning map, which enabled the opening of a Walmart store a mile from a historical site in San Juan Teotihuacán in 2004.[297] After the initial article was released, Walmart released a statement denying the allegations and describing its anti-corruption policy. While an official Walmart report states that it had found no evidence of corruption, the article alleges that previous internal reports had indeed turned up such evidence before the story became public.[298] Forbes magazine contributor Adam Hartung also commented that the bribery scandal was a reflection of Walmart's "serious management and strategy troubles", stating, "[s]candals are now commonplace ... [e]ach scandal points out that Walmart's strategy is harder to navigate and is running into big problems".[299]

In 2012, there was an incident with CJ's Seafood, a crawfish processing firm in Louisiana that was partnered with Walmart, that eventually gained media attention for the mistreatment of its 40 H-2B visa workers from Mexico. These workers experienced harsh living conditions in tightly packed trailers outside of the work facility, physical threats, verbal abuse, and were forced to work day-long shifts. Many of the workers were afraid to take action about the abuse due to the fact that the manager threatened the lives of their family members in the U.S. and Mexico if the abuse were to be reported. Eight of the workers confronted management at CJ's Seafood about the mistreatment; however, the management denied the abuse allegations and the workers went on strike. The workers then took their stories to Walmart due to their partnership with CJ's. While Walmart was investigating the situation, the workers collected 150,000 signatures of supporters who agreed that Walmart should stand by the workers and take action. In June 2012, the visa workers held a protest and day-long hunger strike outside of the apartment building where a Walmart board member resided. Following this protest, Walmart announced its final decision to no longer work with CJ's Seafood. Less than a month later, the Department of Labor fined CJ's Seafood "approximately $460,000 in back-pay, safety violations, wage and hour violations, civil damages, and fines for abuses to the H-2B program. The company has since shut down."[300]

As of December 2012, internal investigations were ongoing into possible violations of the Foreign Corrupt Practices Act.[301] Walmart has invested US$99 million on internal investigations, which expanded beyond Mexico to implicate operations in China, Brazil, and India.[302][303] The case has added fuel to the debate as to whether foreign investment will result in increased prosperity, or if it merely allows local retail trade and economic policy to be taken over by "foreign financial and corporate interests".[304][305]

Sam's Club

[edit]

Sam's Club is a chain of warehouse clubs that sell groceries and general merchandise, often in bulk.[30] Locations generally range in size from 32,000–168,000 sq ft (3,000–15,600 m2), with an average club size of approximately 134,000 sq ft (12,400 m2).[146] The first Sam's Club was opened by Walmart, Inc. in 1983 in Midwest City, Oklahoma[306] under the name "Sam's Wholesale Club". The chain was named after its founder Sam Walton. As of October 31, 2022, Sam's Club operated 600 membership warehouse clubs and accounted for 11.3% of Walmart's revenue at $57.839 billion in fiscal year 2019.[139][307] Christopher Nicholas is the president and CEO of Sam's Club.[145][308]

Global eCommerce

[edit]

Based in San Bruno, California, Walmart's Global eCommerce division provides online retailing for Walmart, Sam's Club, and all other international brands. There are several locations in the United States in California and Oregon: San Bruno, Sunnyvale, Brisbane, and Portland. Locations outside of the United States include Shanghai (China), Leeds (United Kingdom), and Bangalore (India).

Subsidiaries

[edit]

Private label brands

[edit]

About 40 percent of products sold in Walmart are private labels, which are produced for the company through contracts with manufacturers. Walmart began offering private label brands in 1991, with the launch of Sam's Choice, a line of drinks produced by Primo Water for Walmart. Sam's Choice quickly became popular and by 1993, was the third-most-popular beverage brand in the United States.[309] Other Walmart brands include Great Value and Equate in the U.S. and Canada and Smart Price in Britain. A 2006 study talked of "the magnitude of mind-share Walmart appears to hold in the shoppers' minds when it comes to the awareness of private label brands and retailers".[310]

Entertainment

[edit]

In 2010, the company teamed with Procter & Gamble to produce Secrets of the Mountain and The Jensen Project, two-hour family movies which featured the characters using Walmart and Procter & Gamble–branded products. The Jensen Project also featured a preview of a product to be released in several months in Walmart stores.[311][312] A third movie, A Walk in My Shoes, also aired in 2010 and a fourth is in production.[when?][313] Walmart's director of brand marketing also serves as co-chair of the Association of National Advertisers's Alliance for Family Entertainment.[314]

Online commerce acquisitions and plans

[edit]

Launched in 2009, Walmart's Marketplace stayed dormant until 2016 when Walmart purchased e-commerce company Jet.com, founded in 2014 by Marc Lore, to start competing with Amazon.com.[315] Jet.com has acquired its own share of online retailers such as Hayneedle in March 2016, Shoebuy.com in December 2016, and ModCloth in March 2017. Walmart also acquired Parcel, a delivery service in New York, on September 29, 2017.[316][317]

On February 15, 2017, Walmart acquired Moosejaw, an online active outdoor retailer, for approximately $51 million. Moosejaw brought with it partnerships with more than 400 brands, including Patagonia, The North Face, Marmot, and Arc'teryx.[318]

Marc Lore, Walmart's U.S. e-commerce CEO, said that Walmart's existing physical infrastructure of almost 5,000 stores around the U.S. will enhance their digital expansion by doubling as warehouses for e-commerce without increasing overhead.[319] As of 2017, Walmart offers in-store pickup for online orders at 1,000 stores with plans to eventually expand the service to all of its stores.[320]

On May 9, 2018, Walmart announced its intent to acquire a 77% controlling stake in the Indian e-commerce website Flipkart for $16 billion[321] (beating bids by Amazon.com), subject to regulatory approval. Following its completion, the website's management will report to Marc Lore.[322][323][324] Completion of the deal was announced on August 18, 2018.[325]

The company's partnership with subscription service Kidbox was announced on April 16, 2019.[326]

On May 19, 2020, Walmart announced that it was shutting down Jet.com, with all subsequent visitors to the site directed to the Walmart website instead.[327]

Corporate affairs

[edit]
An American flag waving above a Walmart sign at the entrance of an office park
Walmart Home Office (headquarters) in Bentonville, Arkansas in June 2009
Walmart's current West Coast office complex in Sunnyvale, California (when it was still NetApp headquarters)[328]

Walmart is headquartered in the Walmart Home Office complex in Bentonville, Arkansas. In 2025, Walmart closed several U.S. offices and consolidated its U.S. corporate associates into its Bentonville headquarters or its West Coast offices in Sunnyvale, California.[329]

The company's business model is based on selling a wide variety of general merchandise at low prices.[9] Doug McMillon became Walmart's CEO on February 1, 2014. He has also worked as the head of Sam's Club and Walmart International.[330] The company refers to its employees as "associates". All Walmart stores in the U.S. and Canada also have designated "greeters" at the entrance, a practice pioneered by Sam Walton and later imitated by other retailers. Greeters are trained to help shoppers find what they want and answer their questions.[331]

For many years, associates were identified in the store by their signature blue vest, but this practice was discontinued in June 2007 and replaced with khaki pants and polo shirts. The wardrobe change was part of a larger corporate overhaul to increase sales and rejuvenate the company's stock price.[332] In September 2014, the uniform was again updated to bring back a vest (paid for by the company) for store employees over the same polos and khaki or black pants paid for by the employee. The vest is navy blue for Walmart employees at Supercenters and discounts stores, lime green for Walmart Neighborhood Market employees, and yellow for self-check-out associates; door greeters, and customer service managers. All three state "Proud Walmart Associate" on the left breast and the "Spark" logo covering the back.[333] Reportedly one of the main reasons the vest was reintroduced was that some customers had trouble identifying employees.[334] In 2016, self-checkout associates, door greeters and customer service managers began wearing a yellow vest to be better seen by customers. By requiring employees to wear uniforms that are made up of standard "streetwear", Walmart is not required to purchase the uniforms or reimburse employees which are required in some states, as long as that clothing can be worn elsewhere. Businesses are only legally required to pay for branded shirts and pants or clothes that would be difficult to wear outside of work.[335]

Unlike many other retailers, Walmart does not charge slotting fees to suppliers for their products to appear in the store.[336] Instead, it focuses on selling more-popular products and provides incentives for store managers to drop unpopular products.[336]

From 2006 to 2010, the company eliminated its layaway program. In 2011, the company revived its layaway program.[337][338]

Walmart introduced its Site-To-Store program in 2007, after testing the program since 2004 on a limited basis. The program allows walmart.com customers to buy goods online with a free shipping option, and have goods shipped to the nearest store for pickup.[339]

On September 15, 2017, Walmart announced that it would build a new headquarters in Bentonville to replace its current 1971 building and consolidate operations that have spread out to 20 different buildings throughout Bentonville.[340]

According to watchdog group Documented, in 2020 Walmart contributed $140,000 to the Rule of Law Defense Fund, a fund-raising arm of the Republican Attorneys General Association.[341]

[edit]

For the fiscal year ending January 31, 2019, Walmart reported net income of US$6.6 billion on $514 billion of revenue. The company's international operations accounted for $120 billion, or 23.7 percent, of its $510 billion of sales.[139][342] Walmart is the world's 23rd-largest public corporation, according to the Forbes Global 2000 list, and the largest public corporation when ranked by revenue.[343]

The key trends for Walmart are (as of the financial year ending January 31):[344][345]

Year Revenue[b] Net Income[c] Total Assets Employees
[346]
Stores[d] Sources
US$ millions
1968 12.6 0.48 24 [347]
1969 21.3 0.60 27 [347]
1970 30.8 1.1 1,000 32 [347]
1971 44.2 1.6 15.3 1,500 38 [348]
1972 78.0 2.9 28.4 2,300 51 [348]
1973 124 4.5 46.2 3,500 66 [349]
1974 167 6.1 60.1 4,400 78 [350]
1975 236 6.3 75.2 5,800 104 [351]
1976 340 11.5 125 7,500 125 [352]
1977 478 16.5 168 10,000 153 [353]
1978 678 21.8 251 14,700 195 [354]
1979 900 29.4 324 17,500 229 [355]
1980 1,248 41.1 457 21,000 276 [356]
1981 1,643 55.6 592 27,000 330 [357]
1982 2,444 82.7 937 41,000 491 [358]
1983 3,376 124 1,187 46,000 551 [359]
1984 4,666 196 1,652 62,000 645 [360]
1985 6,400 270 2,205 81,000 758 [361]
1986 8,451 327 3,103 104,000 887 [362]
1987 11,909 450 4,049 141,000 1,037 [363]
1988 15,959 627 5,131 183,000 1,215 [364]
1989 20,649 837 6,359 223,000 1,381 [365]
US$ billions
1990 25.8 1.0 8.1 275,000 1,528 [366]
1991 32.6 1.2 11.3 328,000 1,725 [367]
1992 43.8 1.6 15.4 371,000 1,930 [368]
1993 55.4 1.9 20.5 434,000 2,136 [369]
1994 67.3 2.3 26.4 528,000 2,463 [370]
1995 82.4 2.6 32.8 622,000 2,872 [371]
1996 93.6 2.7 37.5 675,000 3,106 [372]
1997 104 3.0 39.6 728,000 3,117 [373]
1998 117 3.5 45.3 825,000 3,406 [374]
1999 137 4.4 49.9 910,000 3,600 [375]
2000 165 5.3 70.3 1,140,000 3,662 [376]
2001 191 6.2 78.1 1,244,000 4,189 [376]
2002 204 6.5 81.5 1,383,000 4,414 [377]
2003 229 7.9 92.9 1,400,000 4,688 [377]
2004 256 9.0 104 1,500,000 4,906 [377]
2005 284 10.2 120 1,700,000 5,289 [378]
2006 312 11.2 138 1,800,000 6,141 [379]
2007 348 11.2 151 1,900,000 6,779 [380]
2008 377 12.7 163 2,100,000 7,262 [381]
2009 404 13.3 163 2,100,000 7,870 [382]
2010 408 14.3 170 2,100,000 8,416 [383]
2011 421 16.3 180 2,100,000 8,970 [384]
2012 446 15.6 193 2,200,000 10,130 [385]
2013 468 16.9 203 2,200,000 10,773 [386]
2014 476 16.0 204 2,200,000 10,942 [387]
2015 485 16.3 203 2,200,000 11,453 [388]
2016 482 14.6 199 2,300,000 11,528 [389]
2017 485 13.6 198 2,300,000 11,695 [390]
2018 500 9.8 204 2,300,000 11,718 [391]
2019 514 6.6 219 2,200,000 11,361 [392]
2020 523 14.8 236 2,200,000 11,501 [393]
2021 559 13.5 252 2,300,000 11,443 [141]
2022 572 13.6 244 2,300,000 10,593 [394]
2023 611 11.6 243 2,100,000 10,623 [395]
2024 648 15.5 252 2,100,000 10,616 [396][397]
2025 674 19.4 260 2,100,000 10,771 [398]

Governance

[edit]

Walmart is governed by an eleven-member board of directors elected annually by shareholders. Gregory B. Penner, son-in-law of S. Robson Walton and the grandson-in-law of Sam Walton, serves as chairman of the board. Doug McMillon serves as president and chief executive officer. Current members of the board are:[399][342][400]

Notable former members of the board include Hillary Clinton (1985–1992)[401] and Tom Coughlin (2003–2004), the latter having served as vice chairman. Clinton left the board before the 1992 U.S. presidential election, and Coughlin left in December 2005 after pleading guilty to wire fraud and tax evasion for stealing hundreds of thousands of dollars from Walmart.[402]

After Sam Walton's death in 1992, Don Soderquist, Chief Operating Officer and Senior Vice Chairman, became known as the "Keeper of the Culture".[403]

Ownership

[edit]

Walmart Inc. is a Delaware-domiciled joint-stock company registered with the U.S. Securities and Exchange Commission, with its registered office located in Wolters Kluwer's Corporation Trust Center in Wilmington. As of March 2017,[404] it has 3,292,377,090 outstanding shares. These are held mainly by the Walton family, a number of institutions and funds.[3][405]

Competition

[edit]

In North America, Walmart's primary competitors include grocery stores and department stores like Target, Kroger, Aldi, Meijer, Trader Joe's, Ingles, Publix, Harris Teeter and Winn Dixie in the United States; Hudson's Bay, Loblaw retail stores, Sobeys, Metro, and Giant Tiger in Canada; and Comercial Mexicana and Soriana in Mexico. Competitors of Walmart's Sam's Club division are Costco and the smaller BJ's Wholesale Club chain. Walmart's move into the grocery business in the late 1990s set it against major supermarket chains in both the United States and Canada.[407] Studies have typically found that Walmart's prices are significantly lower than those of their competitors, and that Walmart's presence is associated with lower food prices for households. Comparisons of performance metrics such as sales per square foot suggest that supermarkets in direct competition with Walmart Supercenters show significant decreases in profit margins, an effect that is strongest in the case of unionized competitors. Between 2000 and 2010, Walmart's entry into new areas often lowered local food prices at other stores. However, recent studies have not found the same effect, suggesting that retailers may have changed their competitive strategies.[30]

While the idea that Walmart destroys small businesses is widely assumed to be true, research so far suggests that Walmart superstores have little effect on smaller retailers such as "Mom and Pop" businesses. Differences in impact appear to be specific to the goods sold. Small retailers may experience difficulty if they rely on selling products identical to those at Walmart or if they try to sell at lower prices.[30] Dollar stores such as Family Dollar and Dollar General have been able to find a small niche market and compete successfully against Walmart.[407] In 2004, Walmart responded by testing its own dollar store concept, a subsection of some stores called "Pennies-n-Cents".[408][30]

Walmart also had to face fierce competition in some foreign markets. For example, in Germany it had captured just 2 percent of the German food market following its entry into the market in 1997 and remained "a secondary player" behind Aldi with 19 percent.[409]

In May 2006, after entering the South Korean market in 1998, Walmart sold all 16 of its South Korean outlets to Shinsegae, a local retailer, for US$882 million. Shinsegae re-branded the Walmarts as E-mart stores.[410]

Walmart struggled to export its brand elsewhere as it rigidly tried to reproduce its model overseas. In China, Walmart hopes to succeed by adapting and doing things preferable to Chinese citizens. For example, it found that Chinese consumers preferred to select their own live fish and seafood; stores began displaying the meat uncovered and installed fish tanks, leading to higher sales.[411]

Customer base

[edit]
Map of Walmart locations in the United States, as of January 2025.

In the United States, Walmart's early growth occurred in the Southeast and lower Midwest. More recently, Walmart has expanded throughout the country. The number of Walmart stores per 1,000 people in 2019 was highest in Arkansas, Oklahoma, Louisiana, Alabama and Kansas, and lowest in Hawaii, California, New Jersey, Massachusetts and New York. California and New Jersey were two of the ten states with the largest increases in Supercenters between 2011 and 2020, along with Pennsylvania, Illinois, and Wisconsin.[30]

Walmart customers display strong customer loyalty[412] and cite low prices as the most important reason for shopping there. Walmart has characterized their shoppers as falling into three main groups: "value-price shoppers" (people who like low prices and cannot afford much more), "brand aspirationals" (people with low incomes who buy well-known brands in hopes of assuring quality), and "price-sensitive affluents" (wealthier shoppers who seek deals).[413] As of 2022 the average U.S. Walmart customer earned about $80,000 per year,[412] above the U.S. average personal income of $63,214.[414] Walmart reports that during times of rising inflation, customers become more sensitive to rising food prices, buying less expensive food items such as hot dogs and canned tuna rather than deli cold cuts. They also see more upper-income shoppers looking for bargains.[415]

Walmart shoppers have been reported to be politically conservative. A poll after the 2004 U.S. presidential election reported that 76 percent of voters who shopped at Walmart once a week reported voting for George W. Bush while only 23 percent supported senator John Kerry.[416] When measured against similar retailers in the U.S. in 2006, frequent Walmart shoppers were rated the most politically conservative.[417] As of 2014 54 percent of Americans who preferred to shop at Walmart reported that they opposed same-sex marriage, while 40 percent were in favor, reflecting the store's southern roots.[418]

Due to its concentration of stores in the Bible Belt, Walmart is known for its "tradition of tailoring its service to churchgoing customers".[419] Walmart has carried clean versions of hip-hop audio CDs and in cooperation with The Timothy Plan, placed "plastic sheathes over suggestive women's periodicals and banned 'lad mags' such as Maxim" magazine.[419] Walmart also caters to its Christian customer base by selling Christian books and media,[420] such as VeggieTales videos and The Purpose-Driven Life, earning the company over US$1 billion annually.[421][422]

In 2006, Walmart took steps to expand its U.S. customer base, announcing a modification in its U.S. stores from a "one-size-fits-all" merchandising strategy to one designed to "reflect each of six demographic groups—African-Americans, the affluent, empty-nesters, Hispanics, suburbanites, and rural residents".[423] Around six months later, it unveiled a new slogan: "Saving people money so they can live better lives".[413]

Walmart has also made steps to appeal to more liberal customers, for example, by rejecting the American Family Association's recommendations and carrying the DVD Brokeback Mountain, a love story between two gay cowboys in Wyoming.[424]

Sales of guns and ammunition

[edit]

Walmart stopped selling handguns in all U.S. states, except for Alaska, in 1993.[425]

In 2018, Walmart stopped selling guns and ammunition to persons younger than 21, following a similar move by Dick's Sporting Goods on the same day.[426] In the same year, Walmart stopped selling military-style rifles that were commonly used in mass shootings.[425]

As of 2019, Walmart was a major retailer of firearms and ammunition.[427] In 2019, after 23 people[428] were killed in a mass shooting at a Walmart store in El Paso, Texas, Walmart announced that it would stop selling all handgun ammunition and certain short-barreled rifle ammunition.[427] The company also announced that it would stop selling handguns in Alaska, the only state where the company still sold handguns.[426] The move was expected to reduce Walmart's U.S. market share in ammunition from around 20% to around 6–9%.[426] Walmart also stated that it was "respectfully requesting" that customers not openly carry weapons in Walmart stores, except for authorized law enforcement officers.[427][426]

Following the fatal police shooting of Walter Wallace Jr. in October 2020, Walmart temporarily removed gun and ammunition displays in thousands of stores across the U.S. from sales floors, grounding their reason in concerns of civil unrest. Company spokesman Kory Lundberg said in a statement that "We have seen some isolated civil unrest and as we have done on several occasions over the last few years, we have moved our firearms and ammunition off the sales floor as a precaution for the safety of our associates and customers." Firearms and ammunition will still be available for purchase on request, but the duration of the removal of both from the sales floor remains undetermined.[429]

Technology

[edit]

Open source software

[edit]

Many Walmart technology projects are coded in the open and available through the Walmart Labs GitHub repository[430] as open-source software under the OSI approved Apache V2.0 license. As of November 2016, 141 public GitHub projects are listed.

During a migration of the walmart.com retail platform to Facebook React and Node.js, the Electrode[431] project was created to power the e-commerce platform which serves 80 million visitors per month and 15 million items.

Alex Grigoryan[432] of Walmart Labs released a statement[433] on Medium.com on October 3, 2016, explaining the details of the applications and the scale that they operate at Walmart.

Big data analytics

[edit]

As the largest retailer in the U.S., Walmart collects and analyzes a large amount of consumer data. The big data sets are mined for use in predictive analytics, which allow the company to optimize operations by predicting customer's habits. Walmart's datacenter is unofficially referred to as Area 71.[434]

In April 2011, Walmart acquired Kosmix to develop software for analyzing real-time data streams.[435] In August 2012, Walmart announced its Polaris search engine.[436]

The amount of data gathered by Walmart has raised privacy concerns.[437][438][439]

Cash handling

[edit]

in 2016, Walmart began a drive to automate much of the cash handling process. Walmart began replacing employees who count currency by hand with machines that count 8 bills per second and 3,000 coins a minute. The processing machines, located in the back of stores, allow cashiers to process the money for electronic depositing.[440][441]

Charity

[edit]

Sam Walton believed that the company's contribution to society was that it operated efficiently, thereby lowering the cost of living for customers, and, therefore, in that sense was a "powerful force for good", despite his refusal to contribute cash to philanthropic causes.[442] Having begun to feel that his wealth attracted people who wanted nothing more than a "handout", he explained that while he believed his family had been fortunate and wished to use his wealth to aid worthy causes like education, they could not be expected to "solve every personal problem that comes to [their] attention". He explained later in his autobiography, "We feel very strongly that Wal-Mart really is not, and should not be, in the charity business," stating "any debit has to be passed along to somebody—either shareholders or our customers."[443] Since Sam Walton's death in 1992, however, Walmart and the Walmart Foundation dramatically increased charitable giving. For example, in 2005, Walmart donated US$20 million in cash and merchandise for Hurricane Katrina relief and in 2020 they committed $25 million to organizations on the frontlines of the COVID-19 pandemic response.[444] Today, Walmart's charitable donations approach US$1 billion each year.[445]

COVID-19

[edit]

As of January 2021, healthcare workers could get vaccines through Walmart in New Mexico and Arkansas. Walmart planned to offer vaccines in Georgia, Indiana, Louisiana, Maryland, New Jersey, South Carolina, Texas, Chicago and Puerto Rico with the target of delivering between 10 million and 13 million doses per month at full capacity.[446][447][448]

In May 2021, Walmart said that starting from May 18 all its fully vaccinated employees could stop wearing masks at work following the guidance from the U.S. Centers for Disease Control and Prevention.[449]

Economic impact

[edit]

Effects on customers

[edit]

A 2005 story in The Washington Post reported that "Wal-Mart's discounting on food alone boosts the welfare of American shoppers by at least US$50 billion per year."[450] A study in 2005 at the Massachusetts Institute of Technology (MIT) measured the effect on consumer welfare and found that the poorest segment of the population benefits the most from the existence of discount retailers.[451] In 2006, American newspaper columnist George Will stated that In terms of economic effects, "Wal-Mart and its effects save shoppers more than US$200 billion a year, dwarfing such government programs as food stamps (US$28.6 billion) and the earned income tax credit (US$34.6 billion)".[452]

Effects on retailers

[edit]

Kenneth Stone, Professor of Economics at Iowa State University, in a paper published in Farm Foundation (1997), found that some small towns can lose almost half of their retail trade within ten years of a Walmart store opening. Presumably, people who previously shopped in towns without Wal-Mart stores choose to shop in towns with Wal-Mart stores, part of an older pattern in which smaller centers lose retail sales to larger ones. Stone compared the changes to previous competitors that small town shops have faced in the past, such as the development of the railroads, the Sears Roebuck catalog, and shopping malls. He concluded that small towns are more affected by "discount mass merchandiser stores" than larger towns and that shop owners who adapt to the ever-changing retail market can "co-exist and even thrive in this type of environment".[49] In later research Artz and Stone (2006) reported that in Mississippi the impact of opening a Walmart was much larger on existing retailers in rural communities (17%) than more urban ones (4%).[30][453] This also suggests that Walmart has achieved its strongest growth in non-metropolitan areas, which tend to be low-income.[30]

Studies of the impact of Walmart tend to focus on Supercenters rather than Neighborhood Markets. Comparisons of performance metrics such as sales per square foot suggest that supermarkets and other high-volume retailers in direct competition with Walmart Supercenters show significant decreases in profit margins.[30] While Walmart has often been said to be a destroyer of small businesses, much of this is anecdotal. Research so far suggests that Walmart superstores have little effect on smaller retailers such as "Mom and Pop" businesses.[30] A 2008 economic analysis published in the journal Economic Inquiry suggested that "the process of creative destruction unleashed by Wal‐Mart has had no statistically significant long‐run impact on the overall size and profitability of the small business sector in the United States".[454]

Impact appears to be related to a number of factors, with a key factor being the goods offered for sale.[30] A study by Ailawadi and others (2010) examined the impact of new Walmarts in detail. She reported that median sales dropped 40 percent at similar high-volume stores, 17 percent at supermarkets and 6 percent at drugstores. However, 30 percent of specific product categories at high-volume stores were unaffected. Many retailers reduced prices and cut product selection in an attempt to compete directly with Walmart, in effect attacking its areas of strength. A more successful approach was to track sales, identify vulnerable categories, and increase the range of products in those categories. By including products at both top and bottom price points, and offering temporary promotions on those items, retailers could attract both customers who were price-conscious and those interested in a wider range of options. A small store that specialized in a particular product area could compete effectively against Walmart.[455][456] Small specialized stores are less effective against big-box category killer chains such as Home Depot and Best Buy electronics.[457]

Some studies have suggested that the impact a Walmart store has on a local business is correlated to its distance from the store. David Merriman, Joseph Persky, Julie Davis and Ron Baiman (2012) outlined the impacts of Walmart in Chicago. Based on three annual surveys of enterprises within a four-mile radius of a new Chicago Walmart it "shows that the probability of going out of business was significantly higher for establishments close to that store". The overall findings of this study reinforce the "contention that large-city Walmarts, like those in small towns, absorb retail sales from nearby stores without significantly expanding the market".[458] Ellickson & Grieco (2013) report in the Journal of Urban Economics that Wal-Marts most strongly affect outlets of larger chains that are within 2 miles (3.2 km) of their location.[459]

Effects on jobs

[edit]

A 2022 literature review concludes that "there is no consensus on the impact of Walmart on local employment, but most studies on the topic point to a modest increase in retail employment".[30] For example, studies at the University of Missouri found that a new store increases net retail employment in the county by 100 jobs in the short term, half of which disappear over five years as other retail establishments close.[460][461] Similarly, a net increase in employment (55 jobs) was found in a study of West Virginia counties between 1989 and 1998.[462]

Like other chain stores, Walmart tends to hire local employees for low-skilled jobs with low wages and minimal benefits.[30] This may increase employees' reliance on public assistance programs, effectively transferring costs away from employers onto taxpayers.[457] Studies examining aggregate retail wage data from states and counties, before and after the arrival of Walmart, are mixed. Some results, particularly from nonmetropolitan areas in the South and central United States, suggest lowered wages. Other studies have found no effect (e.g. Pennsylvania) or an increase in wages (e.g. Maryland).[457] A 2004 paper by Goetz and Swaminathan suggested that U.S. counties with Walmart stores suffered increased poverty compared with counties without Wal-Marts.[463] It is difficult to distinguish the effects of opening a Walmart from other factors, some of which may be related to the decision to open a store. Known as endogeneity bias, this makes it difficult to determine whether Walmart chooses to establish itself in communities with greater poverty and joblessness, or creates more poverty and joblessness.[457]

Studies of socioeconomic well-being, civic participation, and community welfare suggest that large non-locally owned businesses tend to be centralized and vertically integrated, rely on remote sources and support services, and move money, expertise and power away from local communities. Large externally oriented businesses tend to be associated with lower local standards of living, greater inequality, and less social and civic participation. This research is not specific to Walmart, but to large businesses in general.[457]

In broader economic terms, the Economic Policy Institute estimated that between 2001 and 2006 Wal-Mart's trade deficit with China alone represented a loss of nearly 200,000 U.S. jobs. During this period, Wal-Mart was responsible for 9.3% of total U.S. imports from China, increasing the U.S. trade deficit by an estimated $17.1 billion. This represents about 200,000 jobs, most of them in the manufacturing sector (133,000).[464]

A 2014 story in The Guardian reported that the Wal-Mart Foundation was boosting its efforts to work with U.S. manufacturers. In February 2014, the Walmart Foundation pledged to support domestic manufacturers by buying US$250 billion worth of American-made products in the next decade.[465] Between 2014 and 2017, the Walmart U.S. Manufacturing Innovation Fund gave $10 million in grants to research and academic institutions for projects that improve domestic manufacturing.[466] For the 2020 fiscal year, Walmart reported that nearly two-thirds of its merchandise was made, assembled or grown in the United States. As of March 2021, Walmart pledged to buy an additional $350 billion worth of American-based items over the next decade.[467]

Effects on productivity

[edit]

A 2001 McKinsey Global Institute study of U.S. labor productivity growth between 1995 and 2000 concluded that "Wal-Mart directly and indirectly caused the bulk of the productivity acceleration" in general merchandise, representing 16 percent of total productivity growth in the retail sector.[468] Walmart's transformative use of information technology, particularly in supply-chain management, is identified as a major reason for its impact on productivity per man hour.[469][470][471] For every dollar spent by Walmart to improve its own technology, an estimated ten dollars has been invested by suppliers throughout its supply chain on their own systems and software. Economist Robert Solow has emphasized the importance of imitation and adaptation: in addition to improving its own efficiency, Walmart's innovations have been adopted by its competitors so that they can compete.[469]

Impact on the environment

[edit]

Walmart's transportation network is a large contributor to its carbon footprint, with transportation fuel emissions increasing by 10% in 2023 to approximately 15.06 million metric tons of CO2.[472]

Another source of environmental concern is refrigerators, which are very important for Walmart’s transportation of goods. Walmart’s use of refrigerators relies on hydrofluorocarbons (HFCs), chlorofluorocarbons (CFCs), and hydrochlorofluorocarbons (HCFCs), which are potent greenhouse gases. In 2023, refrigerant-related emissions increased by 5.3% due to leaks in equipment across the United States and Mexico.[473] Additionally, Walmart’s shipping operations in 2021 produced more greenhouse gases than a coal-fired power station, coming in at 1.7 million metric tons of CO2, underscoring the environmental cost of its logistics.[474] Walmart's practices have faced criticism for contributing to deforestation, specifically in regions that produce palm oil, soy, and beef.[475] Walmart works with suppliers linked to illegal deforestation in critical ecosystems like the Amazon. The company’s focus on low-cost, low-quality goods with short lifespans also adds to landfill waste, further harming the environment.[475]

Environmental risk

[edit]

Climate change presents significant risks to Walmart’s operations. Extreme weather events such as hurricanes and wildfires can lead to store closures, inventory losses, and disruptions to the supply chain. In 2017, Hurricane Harvey forced Walmart to close over 134 stores in the United States, causing supply chain disruptions and delayed deliveries due to flooding and road closures.[476] In response, Walmart activated emergency systems and implemented advanced forecasting and rerouting to restock essential items in nearby stores. This experience showed Walmart just how important it is to create climate adaptation strategies. Since this event, the company has integrated such strategies into the business model. As climate-related disruptions are expected to increase, Walmart started something called Project Gigaton, which aims to reduce greenhouse gases and focus on energy use, nature, waste, packaging, transportation, and product design, hoping to alleviate some of the pressure of environmental risk on the company.[477] The ongoing risks posed by climate change continue to challenge Walmart’s ability to maintain consistent operations, showing the importance of continued adaptation to these environmental pressures.

Labor relations

[edit]
Workers speak during Occupy Wall Street

With over 2.3 million employees worldwide, Walmart has faced a torrent of lawsuits and issues with regards to its workforce. These issues involve low wages, poor working conditions, inadequate health care, and issues involving the company's strong anti-union policies. In November 2013, the National Labor Relations Board (NLRB) announced that it had found that in 13 U.S. states, Wal-Mart had pressured employees not to engage in strikes on Black Friday, and had illegally disciplined workers who had engaged in strikes.[478] Critics point to Walmart's high turnover rate as evidence of an unhappy workforce, although other factors may be involved. Approximately 70 percent of its employees leave within the first year.[479] Despite this turnover rate, the company is still able to affect unemployment rates. This was found in a study by Oklahoma State University which states, "Walmart is found to have substantially lowered the relative unemployment rates of blacks in those counties where it is present, but to have had only a limited impact on relative incomes after the influences of other socio-economic variables were taken into account."[480]

Walmart is the largest private employer in the United States, with 1.6 million employees as of 2020.[30] Walmart employs almost five times as many people as IBM, the second-largest employer.[481] Walmart employs more African Americans than any other private employer in the United States.[482] While 4.6% of all retail workers, and 16.5% of all U.S. grocery workers, were unionized as of 2020, Walmart does not employ unionized labor and actively discourages unionization and collective bargaining.[30][483][484]

Walmart rebranded their Associate Education Benefits to Live Better U in March 2019. Live Better U supports associate education at every level and includes $1 a day college program, cost-free high school education, and discounts on higher education programs through partnership with Guild Education.

In April 2019, Walmart Inc. announced plans to extend the use of robots in stores in order to improve and monitor inventory, clean floors and unload trucks, part of the company's effort to lower its labor costs.[485] The use of robots has alienated some workers.[486]

In June 2019, Walmart Inc. announced the expansion of education benefits to recruit high school students. The incentives include flexible work schedules, free SAT and ACT preparation courses, up to seven hours of free college credit, and a debt-free college degree in three fields from six nonprofit universities.[487]

Gender

[edit]

In 2007, a gender discrimination lawsuit, Dukes v. Wal-Mart Stores, Inc., was filed against Walmart, alleging that female employees were discriminated against in matters regarding pay and promotions. A class action suit was sought, which would have been the nation's largest in history, covering 1.5 million past and current employees.[488] On June 20, 2011, the United States Supreme Court ruled in Wal-Mart's favor, stating that the plaintiffs did not have enough in common to constitute a class.[489] The court ruled unanimously that because of the variability of the plaintiffs' circumstances, the class action could not proceed as presented, and furthermore, in a 5–4 decision that it could not proceed as any kind of class action suit.[490] Several plaintiffs, including the lead plaintiff, Betty Dukes, expressed their intent to file individual discrimination lawsuits separately.[491] Dukes died in 2017.[492] In 2020, Walmart agreed to pay $20 million, stop using a pre-employment test, and furnish other relief to settle a companywide, sex-based hiring discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).[493]

According to a consultant hired by plaintiffs in a sex discrimination lawsuit, in 2001, Wal-Mart's Equal Employment Opportunity Commission filings showed that female employees made up 65 percent of Wal-Mart's hourly paid workforce, but only 33 percent of its management.[494][495] Just 35 percent of its store managers were women, compared to 57 percent at similar retailers.[495] Wal-Mart says comparisons with other retailers are unfair, because it classifies employees differently; if department managers were included in the totals, women would make up 60 percent of the managerial ranks.[495]

Sexual orientation and gender identity

[edit]

In the Human Rights Campaign's (HRC) 2002 Corporate Equality Index, a measure of how companies treat LGBT employees and customers, gave Wal-Mart Stores Inc. a score of 14%.[496] By 2017, however, HRC's 2017 Corporate Equality Index gave Wal-Mart Stores Inc. a score of a 100%.[497] In 2003, Walmart added sexual orientation to their anti-discrimination policy.[498] In 2005, Walmart's definition of family began including same-sex partners.[499][500][501] In 2006, Walmart announced that "diversity efforts include new groups of minority, female and gay employees that meet at Walmart headquarters in Bentonville to advise the company on marketing and internal promotion. There are seven business resource groups: women, African Americans, Hispanics, Asians, Native Americans, gays and lesbians, and a disabled group."[502] From 2006 to 2008, Walmart was a member of the National Gay & Lesbian Chamber of Commerce.[503] In 2011, Walmart added gender identity to their anti-discrimination policy.[504] Walmart's anti-discrimination policies allow associates to use restroom facilities that corresponds with their gender identity and gender expression.[505] In 2013, Walmart began offering health insurance benefits to domestic partners.[503] In 2015, Doug McMillon, CEO of Walmart, issued a statement opposing House Bill 1228 and asked Governor Asa Hutchinson to veto the bill.[506] In 2016, Walmart began offering full healthcare benefits to its transgender employees.[507]

Criticism and controversies

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Walmart has been subject to criticism from various groups and individuals, including labor unions, community groups, grassroots organizations, religious organizations, environmental groups, firearm groups, and the company's own customers and employees. They have protested against the company's policies and business practices, including charges of racial and gender discrimination.[508][509][510] Other areas of criticism include the company's foreign product sourcing, treatment of suppliers, employee compensation and working conditions, environmental practices, the use of public subsidies, the company's security policies, and slavery.[511][512] Walmart denies wrongdoing and maintains that low prices are the result of efficiency.[513][514][515]

Animal welfare

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In 2012 and 2013, undercover investigations by Mercy for Animals showed pigs at Walmart pork suppliers being confined in gestation crates, castrated without anesthetic, and killed by a practice called "blunt force trauma," involving piglets being slammed against concrete floors.[516] Mercy for Animals launched a high-profile campaign to pressure Walmart to stop sourcing crated pork, including protests at Walmart stores in at least 145 cities.[517] The campaign received support from actors James Cromwell, Ryan Gosling, Kristen Bell, and Zooey Deschanel, who signed a letter to Walmart CEO Mike Duke calling on the company to end the use of "cruel" gestation crates.[518][519] In May 2015, Walmart issued animal welfare guidelines suggesting that suppliers give pigs, egg-laying hens, and veal calves more room to move. The guidelines were criticized by animal welfare groups for not being mandatory.[520]

In 2024, the shareholder activism organization The Accountability Board authored a shareholder resolution requesting that Walmart publish targets for ending the use of gestation crates in its pork supply chain. The company suggested that shareholders vote against the resolution.[521] At a shareholder meeting in June 2024, the resolution received the support of 12.5% of Walmart investors.[522]

In April 2016, Walmart announced plans to eliminate battery cage eggs from its supply chain by 2025.[523] The decision was particularly important because of Walmart's large market share and influence on the rest of the industry.[524][525] The move was praised by major animal welfare groups[526] but a poultry trade group representative expressed skepticism about the decision's impact.[526] Walmart's cage-free eggs will not come from free range producers, but rather industrial-scale farms where the birds will be allotted between 1 and 1.5 square feet each, a stressful arrangement which can cause cannibalism.[524][526] Unlike battery cages, the systems of Walmart's suppliers allow the hens to move around, but relative to battery cages they have higher hen mortality rates and present distinct environmental and worker health problems.[527] As of 2023, only 21% of Walmart's eggs were produced in cage-free facilities.[528]

Business practices

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In March 2018, Walmart was sued by former Director of Business Development Tri Huynh for claims of reporting misleading e-commerce performance results in favor of the company. Huynh stated the company's move was an attempt to regain lost ground to competitor Amazon.[529]

In September 2018, Walmart was sued by Equal Employment Opportunity Commission alleging that Walmart denied requests from pregnant employees to limit heavy lifting.[530]

In July 2019, the Walmart subreddit was flooded with pro-union memes in a protest to the firing of an employee who posted confidential material to the subreddit.[531][532] Many of these posts were angry with Walmart surveying its staff on the Internet. The posting of the union content is in response to the aforementioned alleged anti-union position Walmart has taken in the past.[533]

In June 2022, the Federal Trade Commission (FTC) sued Walmart, alleging that the company facilitated money transfer fraud by allowing its money transfer services to be used by scammers who stole hundreds of millions of dollars from customers.[534][535]

Crime problems

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According to an August 2016 report by Bloomberg Businessweek, aggressive cost-cutting decisions that began in 2000 when Lee Scott took over as CEO of the company led to a significant increase in crime in stores across the United States. These included the removal of the store's famed greeters, who are in part seen as a theft deterrent at exits, the replacement of many cashiers with self-checkout stations, and the addition of stores at a rate that exceeded the hiring of new employees, which led to a 19% increase in space per employee from a decade previous. While these decisions succeeded in increasing profits 23% in the decade that followed, they also led to an increase in both theft and violent crime.[536][457]

In 2015, under CEO Doug McMillon, Walmart began a company-wide campaign to reduce crime that included spot-checking receipts at exits, stationing employees at self-checkout areas, eye-level security cameras in high-theft areas, use of data analytics to detect credit fraud, hiring off-duty police and private security officers, and reducing calls to police with a program by which first-time offenders caught stealing merchandise below a certain value can avoid arrest if they agree to go through a theft-prevention program.[536]

Law enforcement agencies across the United States have noted a burden on resources created by a disproportionate number of calls from Walmart. Experts have criticized the retailer for shifting its security burden onto the taxpayers.[457] Across three Florida counties, approximately 9,000 police calls were logged to 53 Walmart stores but resulted in only a few hundred arrests.[537] In Granite Falls, North Carolina, 92% of larceny calls to local police were from the Walmart store.[538] The trend is similar in rural, suburban, and urban areas. Police are called to Walmart stores 3 to 4 times as much as similar retailers such as Target.[539] Experts say the chain and its razor-thin profit margins rely heavily on police to protect its bottom line. Walmart Supercenters top the list of those most visited by police.[537]

In addition to hundreds of thousands of petty crimes, more than 200 violent crimes, including attempted kidnappings, stabbings, shootings, and murders occurred at the 4,500 Walmarts in the U.S. in 2016.[536] In 2019, 23 people were killed in a mass shooting at a Walmart store in El Paso, Texas.[426][428]

On June 27, 2020, a shooting occurred at a Walmart distribution center in Red Bluff, California, United States. One employee was killed and the shooter was killed by officers.[540][541][542][543]

On July 26, 2025, a mass stabbing occurred in a Walmart store in Traverse City, Michigan. Eleven people were stabbed, some with life-threatening injuries.[544]

Product safety

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In 2012, Walmart's pork and mango supply chain was contaminated, resulting in a large number of customers suffering from severe food poisoning. In order to resolve the incident immediately, Walmart recalled all contaminated pork and mangoes and emptied its inventory to prevent further sales.[545]

In May 2019, the Center for Inquiry filed a lawsuit in the District of Columbia alleging consumer fraud and the endangering of its customers' health due to Walmart's practice of "selling homeopathic [products] alongside real medicine, in the same sections in its stores, under the same signs", according to Nicholas Little, CFI's vice president and general counsel.[546][547] On May 20, 2020, District of Columbia Superior Court Judge Florence Pan dismissed CFI's lawsuit, claiming that CFI had no standing as a consumer protection organization and failed to identify the specific actions on the part of Walmart that led to harm to consumers. CFI has challenged both of those arguments and is planning an appeal.[548]

In November 2021, a federal jury found that Walmart, along with Walgreens and CVS, "had substantially contributed to" the opioid crisis.[549] The damages between the three chains in this suit totalled $650 million. Damages claimed by the lawyers for Lake County and Trumbull County in Ohio were $3.3 billion.[550]

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See also

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Notes

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References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
Walmart Inc. is an American multinational corporation that operates a chain of hypermarkets, discount department stores, and grocery stores under the Walmart brand, along with membership-only warehouse clubs through its division. Founded in 1962 by with the opening of its first store in , the company is headquartered in , and pursues a centered on everyday low prices delivered via high-volume sales, centralized distribution, and efficiencies. By fiscal year 2025, Walmart generated $681 billion in revenue, employed about 2.1 million associates globally, and managed over 10,750 stores and clubs across 19 countries, serving an estimated 255 million customers weekly. The company's rapid expansion from a single to the world's largest retailer by transformed consumer access to affordable goods, pioneering big-box formats and innovations that reduced costs and enabled scale advantages over competitors. Walmart's emphasis on — including automated fulfillment centers and data-driven inventory management—has sustained its market dominance, with U.S. operations alone accounting for the majority of sales and positioning it as the largest private employer . However, Walmart has encountered persistent scrutiny over labor practices, including government charges of unfair labor violations such as retaliatory firings of workers and discriminatory attendance policies, as well as broader critiques from unions and advocacy groups regarding below-market wages and resistance to , which empirical analyses link to localized wage pressures in retail markets despite the company's claims of providing entry-level opportunities and recent wage increases. These issues, often amplified by institutional sources with incentives to highlight corporate flaws, underscore tensions between Walmart's cost-leadership strategy and demands for higher worker protections, while its has also drawn antitrust concerns over supplier relations and competitive displacement of smaller retailers.

History

Founding and Early Growth (1940s–1980s)

Samuel Moore Walton began his independent retail career in 1945 by acquiring a Ben Franklin franchise in , shortly after his discharge from the U.S. Army Intelligence Corps following service. Under his management, the store tripled its sales within three years through aggressive merchandising, extended hours, and customer engagement tactics like self-service displays. A lease dispute with the landlord in 1950 prompted Walton to relocate to , where he opened a second Ben Franklin store; he expanded this model to 16 outlets across , , and by the early , becoming the largest Ben Franklin operator in the region despite ongoing tensions with the franchisor over Walton's push for deeper discounts to compete with emerging discounters. Inspired by visits to discount chains like and , Walton resolved to launch his own operation targeting underserved rural areas with everyday low pricing, high turnover, and minimal frills. On July 2, 1962, he opened the first Walmart Discount City store at 719 West Walnut Street in , stocking a wide range of merchandise at 20 percent below typical prices while leveraging and efficient layout to drive volume. The initial stores focused on small towns overlooked by competitors, emphasizing associate incentives and vendor partnerships to maintain cost advantages. By 1967, the owned 24 Walmart stores generating $12.7 million in annual sales. The company incorporated as Wal-Mart Stores, Inc. in October 1969 under law. Walmart went public in October 1970 via an over-the-counter offering of 300,000 shares at $16.50 each, raising funds to fuel southward and midwestern expansion while adhering to Walton's principles of frugality and data-driven . Listing on the in 1972 coincided with 51 stores and $78 million in sales, reflecting accelerated growth through regional distribution centers that reduced logistics costs. The marked Walmart's transition to national scale, with stores proliferating in 11 states by decade's end via strategies like for faster and profit-sharing to retain talent. This period's emphasis on —rooted in Walton's firsthand negotiations and aversion to —enabled resilience amid and . By fiscal year 1980, Walmart operated 276 stores, employed 21,000 associates, and surpassed $1 billion in annual sales, achieving the milestone more rapidly than any prior U.S. retailer through sustained focus on low-margin, high-volume rural dominance.

National Expansion and IPO (1980s–1990s)

During the , Walmart expanded its footprint from regional dominance in the South and Midwest to a broader national presence, entering new markets such as in 1981 and gradually reaching the West Coast and Northeast by the decade's end. This growth was supported by the capital raised from its 1970 , which had enabled earlier store openings, but the marked accelerated scaling with the opening of 276 stores by 1980 and annual sales surpassing $1 billion for the first time that year. The company's "hub-and-spoke" distribution model—establishing regional distribution centers to serve clusters of stores—facilitated efficient for this expansion, allowing Walmart to build stores contiguously around new facilities rather than in isolated locations. Key innovations complemented this territorial push, including the launch of the first Sam's Club warehouse club in April 1983 in , targeting small businesses and bulk buyers to diversify revenue streams. In 1988, Walmart introduced its Supercenter format in , merging traditional discount retailing with full-service grocery sections to capture one-stop shopping demand, a move that later became central to its growth strategy. By fiscal 1990, these efforts propelled Walmart to become the largest U.S. retailer by revenue, with sales reaching $25.8 billion—a 25% increase from $20.6 billion the prior year—and net income exceeding $1 billion for the first time at $1.08 billion. The sustained this momentum, with Walmart surpassing $100 billion in annual sales by 1997 amid continued store proliferation and format rollouts. Prior to mid-1990, the company had limited West Coast presence, but aggressive entry into and other states solidified its national stature, outpacing competitors like through low prices, everyday low pricing, and supply chain efficiencies. By decade's end, Walmart operated thousands of units across formats, employing over 1 million associates and generating sales of $166 billion in fiscal 1999, reflecting the transformative scale achieved from post-IPO investments in infrastructure and market penetration.

Internationalization and Maturation (2000s–2010s)

During the , Walmart intensified its international operations, leveraging acquisitions and in markets where its low-price model aligned with local consumer preferences. In , where Walmart had established a in 1991, the company expanded rapidly through its Wal-Mart de México (Walmex), becoming the country's leading retailer by capitalizing on urban migration and demand for affordable groceries and merchandise; by 2010, Mexico hosted over 1,300 stores and represented Walmart's largest international market. Similarly, in , Walmart grew its footprint to approximately 300 stores by the mid-, adapting supercenter formats to compete with incumbents like through efficient supply chains and everyday low pricing. In the , the 1999 acquisition of enabled steady expansion, reaching 368 stores by 2010, supported by localized merchandising and integration of Walmart's logistics expertise. China's operations, initiated in 1996, saw accelerated store openings in the , with Walmart establishing over 100 hypermarkets by 2009, focusing on tier-2 cities and joint ventures to navigate regulatory hurdles while appealing to emerging middle-class shoppers. However, Walmart encountered significant challenges in markets resistant to its American-centric operational culture, leading to costly retreats. In Germany, after acquiring chains like Wertkauf and Interspar in 1997, Walmart operated 85 hypermarkets but struggled with entrenched competitors such as and , cultural mismatches—including resistance to practices like mandatory employee chanting and greeters—and failure to achieve price leadership due to high labor costs and union opposition; the company exited in 2006 by selling to for approximately €1 billion, incurring a $1 billion loss. South Korea presented analogous issues, where Walmart's 16 stores, acquired via a 1999 , underperformed against discount chains like E-Mart owing to inadequate of product assortments and store layouts to preferences for fresh foods and smaller sizes; Walmart sold its stake in May 2006 to Group, marking another withdrawal after minimal . In Japan, Walmart's 2002 acquisition of a 6% stake in Seiyu (later increased to majority control by 2008) yielded mixed results, hampered by deflationary pressures, keiretsu supplier relationships, and consumer loyalty to incumbents like , though the retailer persisted with incremental reforms rather than full exit during this period. These failures highlighted the limits of transplanting Walmart's U.S. model without sufficient localization, prompting a strategic pivot toward s and selective expansion. The marked Walmart's maturation as a global operator, with lessons from setbacks informing a more disciplined approach emphasizing adaptable entry modes and core market focus. International net sales rose from $52.5 billion in 2005 to $109.2 billion by 2011, reflecting compounded growth in high-performing regions like and despite the exits. By 2019, the segment generated $120.8 billion, comprising about 24% of , underscoring diversification beyond the U.S. Walmart refined its through mergers, such as combining and Central American operations in to streamline management, and invested in enhancements tailored to regional challenges. Early digital efforts complemented physical expansion; while primarily U.S.-focused, international e-commerce pilots in the late laid groundwork for integration in markets like the and . This era also saw Walmart address operational risks, including a 2005–2012 U.S. investigation into allegations (resolved with a $282 million settlement in ), which spurred enhanced compliance and ethical maturation across borders. Overall, these developments shifted Walmart from aggressive experimentation to sustainable scaling, prioritizing empirical adaptation over uniform replication.

Digital Transformation and Recent Developments (2020s)

Walmart accelerated its in the early 2020s, driven by the pandemic's boost to and strategic investments exceeding billions in infrastructure. Global sales grew at a compound annual rate of approximately 17% from 2020 to 2025, with U.S. online sales surging 26% year-over-year in the second quarter of fiscal 2025, fueled by grocery demand and store-fulfilled delivery options that increased 50%. Walmart.com holds a global web traffic rank of #21 and #5 in the United States according to SimilarWeb, with monthly visits exceeding 1 billion based on the latest available metrics. By September 2025, Walmart's overall business surpassed $100 billion in annual sales, representing about 18% digital penetration of in fiscal 2025, up from 14.3% in fiscal 2023. This shift integrated strategies, including same-day delivery reaching 93% of U.S. households and express delivery (under three hours) available for 30% of orders. Key to this evolution were heavy investments in (AI) and , particularly in operations. Walmart deployed AI-driven tools for , inventory unification across stores and fulfillment centers, and to anticipate disruptions, enabling up to two weeks' advance detection of issues via technology powered by spatial AI. In 2025, the company rolled out agentic AI systems—capable of autonomous actions—which transformed retail processes by optimizing , staffing, and customer support, as detailed in its Retail Rewired Report. These initiatives extended to associate tools, such as AI-powered for shift planning and real-time to reduce language barriers, empowering over 1.5 million frontline workers. Automation in distribution centers further enhanced efficiency, with and AI minimizing food waste in perishable handling and improving accuracy to cut costly errors. By October 2025, Walmart invested in (IoT) technologies through partnerships like with Wiliot, deploying ambient sensors for real-time visibility and faster fulfillment in its top 60 distribution centers. The 2025 highlighted ongoing commitments to generative AI for enhancing shopping experiences and associate productivity, alongside global expansion of U.S.-style playbook using real-time AI across international operations. These developments positioned Walmart to compete more effectively against pure-play digital rivals, emphasizing data-driven resilience over traditional retail constraints.

Business Model and Operations

Retail Formats and Omnichannel Strategy

Walmart operates a variety of retail formats tailored to different needs, primarily in the United States, with Supercenters forming the core of its physical presence. Supercenters, which combine full-line grocery and general merchandise departments in facilities averaging 180,000 square feet, numbered 3,560 as of July 31, 2024. These stores operate 24 hours a day in many locations and account for the majority of Walmart's U.S. square footage, enabling one-stop shopping for essentials and discretionary items. Previously, many Supercenters included McDonald's restaurants as in-store dining options, but in 2021, McDonald's closed most of its approximately 1,000 locations inside Walmart stores nationwide, retaining only about 150. For instance, the McDonald's at the Walmart Supercenter in Whitehall Township, part of the Lehigh Valley area in Pennsylvania, was closed and cleared out in April 2021, and no current McDonald's locations are reported inside Walmart stores in that area. , focused on general merchandise without extensive grocery sections, totaled 354 units as of the same date, serving smaller markets or areas with limited space for larger formats. Neighborhood Markets emphasize grocery and services in compact stores averaging 40,000 square feet, with 672 locations as of July 31, 2024, targeting urban and suburban consumers seeking for fresh foods and household staples. , Walmart's membership-based warehouse format, operates 600 clubs offering bulk goods, , and supplies, requiring an fee for access and generating through both and memberships. Smaller formats, including experimental concepts like Walmart Express or convenience-oriented sites, comprise about 20 units, often testing urban or high-density adaptations. In 2025, Walmart planned to build or convert over 150 stores, prioritizing Supercenter remodels to incorporate advanced layout efficiencies and technology integrations. Walmart's integrates its extensive physical footprint with digital channels to facilitate seamless customer experiences, leveraging stores as fulfillment hubs for online orders. This approach includes buy-online-pickup-in-store (), curbside pickup, and store-fulfilled delivery, which drove a 22% global sales increase in the first quarter of fiscal 2026. By mid-2025, Walmart aimed to provide same-day delivery via Walmart+ membership to 95% of the U.S. population, covering groceries, health products, and merchandise through optimized and partner networks. The utilizes geospatial to expand delivery radii, adding access for 12 million additional households by refining hexagonal grid-based coverage. Key enablers include Walmart+ subscriptions offering free shipping, fuel discounts, and expedited services, alongside app-based tools for order tracking, in-store scanning, and payments. Walmart does not accept Apple Pay or other NFC-based tap-to-pay services at checkout, instead promoting Walmart Pay, where customers link payment cards to the app and scan QR codes for contactless transactions; this enables avoidance of third-party fees and collection of shopper data insights. Returns are handled omnichannel-style, permitting in-store drop-offs or prepaid mail labels without fees for members, reducing friction and boosting retention. This model capitalizes on Walmart's 4,600+ U.S. stores for rapid last-mile fulfillment, outperforming pure-play rivals by minimizing shipping costs and times through hybrid operations.

Supply Chain Efficiency and Logistics

Walmart maintains an extensive network of over 150 distribution centers , complemented by more than 40 fulfillment facilities, enabling rapid regional distribution to its stores. These centers employ techniques, where incoming shipments from suppliers are immediately transferred to outbound trucks with minimal storage—often within 24-48 hours—reducing handling costs and inventory holding times. This practice, refined by Walmart since the , accounts for a significant portion of its inbound and outbound , contributing to overall cost reductions estimated at up to 6% through minimized warehousing. The company developed its private truck fleet starting in 1970 alongside its first distribution center, enhancing control over transportation and supply chain efficiency. The fleet, comprising approximately 12,663 power units as of , supports timely deliveries across its network with dedicated drivers who receive competitive compensation, earning up to $110,000 in their first year—above the industry median—to attract and retain talent. Key to operational efficiency is Walmart's early adoption of (RFID) technology, mandated for its top 100 suppliers starting in January 2005 following an announcement in November 2003, which improved real-time inventory tracking and reduced stock discrepancies. This integration with just-in-time principles supports a high turnover ratio of 9.07 times annually for the ending January 31, 2025, indicating goods move from receipt to sale in roughly 40 days on average. Such metrics reflect disciplined and supplier coordination, minimizing excess stock while maintaining availability, as evidenced by on-time fulfillment rates exceeding 95% in core categories reported in early 2025. In the 2020s, Walmart has accelerated and AI integration to address rising complexities in perishable goods and fulfillment. By July 2025, AI-driven systems for real-time visibility and were deployed across U.S. distribution centers, with plans to extend this "playbook" globally for enhanced resilience against disruptions. Innovations include automated defect detection in high-tech facilities and expansions of perishable distribution centers—five new builds and four upgrades announced in 2024 to support 1,500 stores by fiscal 2025—incorporating for faster processing of fresh and frozen items. Agentic AI tools, scaled in 2025, unify data across stores, centers, and suppliers, enabling proactive adjustments to demand fluctuations and reducing stockouts. These advancements, built on foundational efficiencies, sustain Walmart's competitive edge in cost control and speed.

Technology Adoption and Innovations

Walmart pioneered the widespread adoption of (RFID) technology in retail supply chains, mandating its use for top suppliers in apparel and other categories starting in the early , with expanded implementation across toys, home goods, electronics, and sporting goods by September 2, 2022. This initiative improved inventory accuracy to over 99% in participating stores and reduced out-of-stocks by enabling real-time tracking without manual scanning. In October 2025, Walmart partnered with to extend RFID to fresh foods, embedding tags in packaging to monitor freshness, cut waste, and enhance through automated item-level identification. The company has integrated (AI) and (ML) extensively into its and , deploying AI-driven systems in high-tech distribution centers for automated defect detection, case scanning at scale, and predictive as early as 2023. By 2025, Walmart's Element platform facilitated scalable ML adoption, enabling faster model deployment for inventory optimization and disruption anticipation. Ambient (IoT) sensors, numbering in the millions and powered by partnerships like Wiliot since October 2025, provide real-time data on temperature, humidity, and location across 4,600 stores, fueling AI to minimize dwell time and improve throughput. In e-commerce and customer-facing innovations, Walmart launched AI-powered tools in June 2025 to assist 1.5 million associates with task management, shift planning, and language translation, reducing administrative burdens. A October 2025 partnership with OpenAI integrated generative AI into shopping experiences via ChatGPT, enabling conversational search and personalized recommendations. Earlier efforts included spatial AI for digital twins in stores, detecting issues up to two weeks ahead, and augmented reality platforms for immersive commerce scaling since October 2024. These technologies have driven Walmart Connect ad revenue growth of 46% globally in Q2 2025 through AI personalization.

Corporate Structure and Leadership

Key Executives and Succession

Doug McMillon has served as president and chief executive officer of Walmart Inc. since February 1, 2014, succeeding Mike Duke after rising through roles including president of Walmart International. Under his leadership, the company has emphasized e-commerce growth, supply chain investments, and international expansion, with McMillon reporting directly to the board chaired by Gregory B. Penner, a Walton family member and general partner at Madrone Capital Partners. Key executives in Walmart's leadership team, known as the Executive Council, include John Furner as president and chief executive officer of Walmart U.S., overseeing domestic retail operations; Kathryn McLay as president and chief executive officer of ; John David Rainey as executive vice president and , managing financial strategy and ; Suresh Kumar as executive vice president and global , driving technology and AI initiatives; and Donna Morris as executive vice president and chief people officer, responsible for across 2.1 million associates globally. Recent adjustments effective , 2025, included promotions such as Venessa Yates to senior vice president roles in , aimed at aligning with fiscal 2026 priorities. Walmart's is overseen by the , particularly through the Compensation, Nominating and Committee, which evaluates internal candidates and develops CEO successors in collaboration with the full board. McMillon, an internal promotee with over three decades at the company, stated in 2023 his intention to remain in the role for at least three more years, extending beyond 2026, as the board continues identifying and grooming potential successors amid the Walton family's controlling stake of approximately 45% of shares, which influences long-term stability. No specific successor has been publicly named as of 2025, reflecting a deliberate, top-down process prioritizing operational continuity and family-aligned . The , comprising 11 members including independent directors like former CEO Niccol and Walmart executives such as McMillon, maintains a majority-independent structure to balance family oversight with external expertise.

Ownership, Governance, and Shareholder Returns

Walmart Inc. is a publicly traded company listed on the under the WMT, with its shares widely held by institutional and retail investors. The , descendants of founder , maintains significant influence through ownership of approximately 45% of the company's outstanding shares, primarily via Walton Enterprises LLC and family trusts. This stake, equivalent to about 44.6% to 46% including direct and indirect holdings by Sam Walton's children, provides the family with substantial voting power despite the public float. Institutional investors such as and hold notable portions of the remaining shares, while retail investors collectively own around 56%. Corporate governance is overseen by a board of directors comprising 12 members as of June 2025, chaired by Gregory B. Penner, a member and managing member of Walton Enterprises. The board includes Walmart's President and CEO , along with independent directors such as , Timothy P. Flynn, Sarah Friar, Carla A. Harris, Tom Horton (lead independent director until June 2025), Marissa A. Mayer, and others with expertise in finance, , and operations. Key committees include the for financial oversight, Compensation and Committee for executive pay, Nominating and Committee for director selection and governance policies, and others focused on , , and executive matters. Walmart's corporate governance guidelines emphasize director independence, annual evaluations, and alignment with interests, with proxy statements filed annually with the SEC detailing practices such as majority voting for directors and clawback policies for . Walmart has delivered consistent shareholder returns primarily through dividends and share repurchases, reflecting its emphasis on capital allocation to support long-term value. In 2025, the company returned $11.2 billion to shareholders via these mechanisms, including $1.645 billion in share buybacks during the quarter ended July 31, 2025, with $5.9 billion in remaining authorization under its repurchase program. payments have been a hallmark since 1974, with the most recent quarterly declared ahead of an of December 12, 2025. Over the past decade, Walmart distributed approximately $130 billion in cash returns, contributing to a five-year total shareholder return of 130.58% as of August 2025, driven by growth and amid competitive retail pressures.

Financial Performance

Revenue Growth and Profitability

Walmart's annual revenue reached $681 billion in fiscal year 2025 (ended January 31, 2025), marking consistent growth driven primarily by increases in comparable store sales, e-commerce penetration, and expansion in higher-margin segments such as advertising and membership services. This represented an approximate 5.1% year-over-year increase from fiscal year 2024's $648.1 billion, with trailing twelve-month revenue climbing to $693.15 billion as of October 2025 amid sustained transaction volume growth of around 4-5% in recent quarters. Historically, revenue has expanded from $523.96 billion in fiscal year 2020 to the current scale, reflecting resilience through economic cycles via operational efficiencies and market share gains in essential goods categories. Profitability has strengthened in parallel, with net income rising to $19.44 billion in fiscal year 2025, a 25.3% increase from $15.51 billion in fiscal year 2024, yielding a net profit margin of 2.85%. Operating income margins hovered around 4-5%, bolstered by gross margins near 24.9% and contributions from scalable digital revenue streams that outpace traditional retail margins. Key drivers include e-commerce sales growth exceeding 20% annually in recent years, advertising revenue expansion, and membership programs like Walmart+, which enhance customer retention and per-transaction value without proportionally increasing costs. These factors have offset inflationary pressures on supply chain costs, enabling return on assets above 6.99% trailing twelve months.
Fiscal YearRevenue ($B)YoY Growth (%)Net Income ($B)Net Margin (%)
2021559.156.713.672.45
2022611.299.313.672.24
2023611.290.011.681.91
2024648.136.015.512.39
2025681.005.119.442.85
This table illustrates the post-pandemic acceleration, with profitability rebounding from pandemic-induced margin compression due to elevated labor and logistics expenses, toward more stable levels supported by cost discipline and diversification beyond physical retail. Despite thin margins inherent to high-volume discount retailing—typically under 3% —Walmart's absolute profit scale remains substantial, funding reinvestments in and that sustain long-term growth.

Market Position and Competitive Metrics

Walmart commands the largest market position among global retailers and the sales leader in the superstore (big-box/discount retail) industry, generating net sales of $648.1 billion in 2024 (ended January 31, 2024), which represented approximately 2.1% of the worldwide retail market totaling $30.2 trillion. In the United States, its domestic operations accounted for $442 billion in revenue, capturing about 6% of the overall retail sector while leading in categories like groceries with a 21.2% share as of the first quarter of 2025. This dominance stems from its scale, with over 4,600 U.S. stores enabling broad geographic coverage—90% of the population lives within 10 miles of a location—and a hybrid model blending physical and digital sales. Competitively, Walmart outperforms traditional discounters and grocers in revenue and footprint but faces pressure from e-commerce pure-plays. Walmart maintains dominance through everyday low pricing and broad discounts. In 2026, discount strategies are intensifying industry-wide due to value-driven consumers, with rapid expansion from discount chains like Aldi and Dollar General, though Walmart leads among traditional superstores in sales and competitive pricing. Its U.S. sales of $568.7 billion in 2024 dwarfed Target's $105.8 billion, supported by 4,610 stores versus Target's 1,966. Against Costco, Walmart's total revenue exceeded Costco's $242 billion (2023 figures, with 6.7% growth), though Costco maintains higher per-store sales in membership-based wholesale. Amazon poses the closest rival in overall scale, with Walmart's fiscal 2025 revenue reaching $681 billion compared to Amazon's $638 billion calendar 2024 total (including non-retail segments like AWS), but Walmart leads in physical grocery and trails in pure e-commerce at 6.3% U.S. market share versus Amazon's dominance. Key financial metrics underscore Walmart's stability and valuation premium. As of October 2024, its stood at $810.8 billion, with a trailing price-to-earnings (P/E) of approximately , reflecting investor confidence in its defensive amid economic volatility. On February 3, 2026, Walmart achieved a market capitalization of $1 trillion for the first time in its history, becoming the first traditional retailer to reach this milestone. In grocery, Walmart captured a record 37% of U.S. e-grocery sales in Q2 2024, eroding Amazon's share below 20% through integrated fulfillment and same-day delivery.
Competitor2024 Revenue ($B)U.S. Store CountU.S. Grocery Share (%)
Walmart6484,61021.2
Amazon638 (total)N/A (online-focused)<20 (e-grocery)
Target1061,966~5
242 (2023)~600~7
Data reflects latest available fiscal/calendar alignments; grocery shares approximate for traditional channels.

Employment and Labor Practices

Workforce Scale and Economic Contributions

Walmart employs approximately 2.1 million associates globally as of the end of fiscal year 2024 (January 31, 2025), with about 1.6 million of those positions . This makes Walmart the largest private employer in the U.S., surpassing other major retailers and providing a significant portion of the nation's retail . The company's store and distribution network spans all 50 states, often serving as the top private employer in multiple regions, which underscores its role in sustaining in rural and suburban areas where alternative opportunities may be limited. The scale of Walmart's workforce generates substantial direct economic activity through payroll and associated spending. As of 2025, the average hourly wage for U.S. associates stands at $18.25, surpassing the national median for retail sales workers of approximately $16 per hour reported in 2023 data. This compensation structure, combined with benefits such as health coverage for over half of eligible part-time workers, supports consumer spending that circulates within local economies. Walmart's operations also indirectly bolster employment via its supply chain, with more than two-thirds of its annual product spend directed toward American-made goods, fueling jobs in manufacturing, agriculture, and logistics. Walmart has committed to investing an additional $350 billion by 2030 in U.S.-sourced products, a pledge projected to support millions of jobs across domestic suppliers and related industries, building on prior investments that exceeded $100 billion annually in American economic activity. Empirical analyses, such as those from economic consultancies, indicate that Walmart's presence correlates with higher overall retail sector wages in affected markets due to competitive pressures, though some peer-reviewed studies highlight localized net displacement from store openings. These contributions position Walmart as a key driver of labor market participation, particularly for lower-skilled workers, while its scale amplifies fiscal impacts through corporate taxes and vendor payments exceeding hundreds of billions annually.

Compensation, Benefits, and Relations with Unions

Walmart's U.S. frontline associates earned an hourly of $18.25 as of 2025, up from approximately $12 per hour in , reflecting cumulative increases exceeding 50% driven by annual adjustments and targeted investments totaling billions in associate pay over the decade. Starting wages have risen progressively, from $9 per hour in to $11 in 2018 and $14 in 2023, with current entry-level rates varying by role, location, and facility type—ranging from $14 to $32 per hour in stores and up to $34 in distribution centers. These enhancements have correlated with improved staff retention exceeding 10% since , as higher pay supports operational stability in a competitive retail labor market. Eligible associates receive a comprehensive benefits package, including medical insurance with biweekly premiums starting at $38.30 for individual coverage, encompassing virtual care, preventive services, and access to Centers of Excellence for major procedures at reduced or no cost. Walmart classifies associates as full-time if they average 34 hours per week or more over a measurement period, such as a quarter or year; part-time associates may qualify for health benefits eligibility under the Affordable Care Act at an average of 30 hours per week, though practices vary by store and time period, with associates potentially switched to part-time status if below the 34-hour threshold. Dental, vision, and life insurance options supplement health coverage, while retirement benefits feature a 401(k) plan with company matching on contributions and an associate stock purchase plan with a 15% match. Paid time off policies provide for sick leave accrual, up to 16 weeks of maternity leave, and 6 weeks of parental leave for qualifying events. Education support through the Live Better U program covers 100% of tuition and books for associate degrees, bachelor's degrees, and certificates at select institutions, benefiting over 1.3 million field associates since its expansion. Walmart's policy on secondary employment, as outlined in its December 2024 Code of Conduct, prohibits management associates and salaried associates from working for a competitor. Hourly associates are not explicitly prohibited from holding second jobs, including at competing retailers, but must avoid conflicts of interest by ensuring the second job does not interfere with Walmart responsibilities, use Walmart resources, or involve sharing proprietary information. Side businesses are also restricted from competing with Walmart. Walmart operates its roughly 4,700 U.S. stores without union representation, a status maintained despite persistent organizing campaigns by labor groups like the since the company's early expansion. The retailer has faced over 20 (NLRB) complaints as of 2024 alleging unfair labor practices, including surveillance, threats, and other tactics to discourage union activity, such as a case involving a store where workers reported coerced meetings and discipline. Walmart defends its approach by emphasizing direct communication with employees, which it credits for enabling flexible, market-responsive compensation exceeding many unionized retail peers, while legally challenging union actions like intermittent strikes deemed unprotected under NLRB rulings. No U.S. Walmart stores have successfully unionized, aligning with the company's policy that third-party involvement could hinder its low-cost model and associate advancement opportunities.

Economic and Community Impact

Consumer Benefits and Price Discipline

Walmart's Everyday Low Pricing (EDLP) strategy prioritizes consistent base prices over promotional discounts, enabling consumers to access goods at stable, reduced rates without timing purchases for . This approach leverages Walmart's scale in and distribution to compress costs, passing savings directly to shoppers and building loyalty through predictability. Empirical research quantifies these benefits, showing Walmart's market entry drives measurable price declines. A study examining retail data from 1997 found that Walmart's presence reduced prices by 1.5-3% in the short run across various products, with long-run effects reaching 6-12% as efficiencies propagate. In grocery sectors, supercenter openings correlated with 1.7-4.4% price drops for eight of ten staple items over time, with amplified impacts in smaller markets where competitive alternatives were limited. This price discipline extends industry-wide, as incumbent retailers adjust downward to retain customers, amplifying consumer gains beyond Walmart's direct footprint. For example, econometric analyses confirm that rival stores lower prices in response to Walmart's expansion, yielding broader welfare effects through intensified rather than isolated bargains. Such dynamics underscore Walmart's role in enforcing cost efficiencies, though aggregate household savings estimates vary; one analysis pegged annual benefits at approximately $3,100 per family via indirect competitive pressures, independent of exclusive shopping at Walmart. These outcomes stem from Walmart's operational rigor in and negotiations, which minimize markups and sustain low-price equilibria.

Effects on Suppliers, Competitors, and Local Economies

Walmart's relationships with suppliers are characterized by intense bargaining, where the retailer leverages its massive scale—accounting for up to 30% of some suppliers' sales—to demand price concessions, extended payment terms, and cost-sharing measures. In 2015, Walmart revised supplier agreements to extend payment periods and impose storage fees, aiming to offset its own earnings pressures amid rising costs. Despite such pressures, peer-reviewed analyses indicate that suppliers often experience net profitability gains from Walmart's high purchase volumes, which enable economies of scale and expanded market access. A study examining major customers found that Walmart's presence correlates with increased gross margins, improved cash collections for suppliers, and overall profit uplifts, contrasting with smaller retailers. Another analysis reported supplier profits rising by 18% following Walmart entry into their markets, driven by shipment volume increases in over half of studied cases. Walmart's Open Call program, which in 2023 connected over 700 U.S. businesses—mostly small—to potential deals, further mitigates barriers for emerging suppliers, with nearly two-thirds securing contracts. However, smaller or less efficient suppliers face heightened risks, including delisting or bankruptcy if unable to meet demands, as evidenced by cases in sporting goods manufacturing where only adaptable firms thrive. Walmart's expansion exerts competitive pressure primarily on larger retail chains rather than small "mom-and-pop" stores, with showing limited overall harm to independent businesses. A 2013 study concluded that Walmart's entry impacts rivals within a 2-mile radius, mostly big-box competitors like mass merchants, while consumer preferences shift toward Walmart but do not broadly erode small retailer viability. That said, in non-metropolitan areas, Walmart's presence reduces survival rates for new and small retail entrants by intensifying and altering local patterns. General payrolls may rise modestly due to Walmart's operations, but displacement effects lead to net contractions in competing segments. The effects on local economies are empirically contested, with Walmart supercenters creating 300–400 direct jobs per store at wages of $14–$19 per hour—near the 2023 national retail median of $16—but often displacing more positions elsewhere in retail. County-level studies using instrumental variables estimate net retail losses of 146–167 jobs and payroll reductions of $1.15–$1.71 million per opening, implying each Walmart worker replaces about 1.4 others, though absolute retail sector growth persisted historically. Rural counties experience 6–8% retail growth post-entry in some analyses, versus 20% in urban areas, but monopsony power in low-wage markets can suppress broader earnings. Consolidation favors efficient operators, potentially enhancing long-term , yet short-term disruptions include store closures and reduced local diversity, with no consensus on impacts across the .

Controversies

Allegations of Predatory Pricing and Market Dominance

Walmart has faced multiple allegations from independent retailers and pharmacies claiming that the company engaged in by selling merchandise below cost to eliminate competition, particularly in local markets. These claims typically invoke state unfair trade practices acts prohibiting sales at or below cost with intent to injure competitors, distinct from federal antitrust standards requiring proof of monopoly power and recoupment of losses. A prominent case arose in 1993 when three independent pharmacies in —American Drugs, Goode's and Reeves Drug—sued Walmart under the Arkansas Unfair Practices Act, alleging the retailer sold pharmaceuticals below cost between 1988 and 1991 to drive them out of business. The chancery court ruled in favor of the pharmacies, finding Walmart guilty of , enjoining future below-cost sales of certain drugs, and awarding approximately $300,000 in plus attorney fees. On appeal, the reversed the decision in a 4-3 ruling in January 1995, holding that while below-cost sales occurred, there was insufficient evidence of specific intent to harm competition rather than general market rivalry, and remanding for further proceedings that effectively upheld Walmart's practices. Similar accusations surfaced in 2000 when Crest Foods, an Oklahoma grocery chain, filed a private lawsuit against Walmart, claiming the retailer sold dozens of grocery items below cost at its Edmond store to force Crest out of business, violating Oklahoma's below-cost sales . The suit highlighted specific products like and priced under invoice cost, but the case was settled out of court without admission of liability or judicial finding of predation. Despite these state-level challenges, Walmart has not faced successful federal antitrust enforcement for under the or Sherman Act, with the filing an amicus brief in related litigation arguing that overly restrictive state laws could conflict with federal promotion of vigorous price competition. Economic analyses indicate that proving predation is challenging in retail due to low entry barriers and the difficulty of recouping predatory losses through sustained supra-competitive pricing, as Walmart has maintained consistently low grocery prices relative to rivals amid inflation. Walmart's scale enables efficiencies yielding everyday low prices, which critics from advocacy groups attribute to anticompetitive dominance rather than superior operations, though such groups often represent affected competitors. Walmart holds significant market dominance in U.S. grocery retail, with over 50% share in 318 counties and near-monopoly status (80%+) in 40 counties as of 2019 data, enabling localized pricing power that some studies link to reduced competition and supplier pressure, though national competition from entities like Amazon and tempers monopoly claims. No empirical consensus supports widespread predatory intent, as post-entry price hikes sufficient for recoupment are rare; instead, Walmart's model disciplines competitors through efficiency, benefiting consumers with lower costs estimated at $50 billion annually in savings. Allegations persist from stakeholders viewing dominance as inherently exclusionary, but courts have prioritized consumer welfare over protecting inefficient rivals.

Labor Disputes and Discrimination Claims

Walmart has faced numerous allegations of unfair labor practices, primarily centered on efforts to suppress union organizing. The (NLRB) has issued complaints against the company in multiple instances, including a 2019 ruling that addressed a 2013 "Ride for Respect" work stoppage by employees protesting retaliation, determining it constituted protected concerted activity rather than an unprotected intermittent strike. In January 2024, the NLRB filed a complaint accusing Walmart of illegal union-busting at a store, alleging the company interrogated employees about union activities, removed pro-union flyers, and threatened workers with job loss for supporting efforts; this was part of at least 21 pending NLRB complaints nationwide against Walmart for similar violations. Walmart has consistently denied these allegations, maintaining that its policies comply with and emphasizing direct employee relations over third-party representation. Labor disputes have occasionally escalated to strikes and protests, though Walmart stores remain largely non-unionized. In 2009, the (UFCW) achieved Walmart's first U.S. union contract for meat department workers in a single store following a closure dispute, but the company subsequently eliminated meat-cutting positions nationwide, leading to bargaining impasses. During the in 2020, Walmart workers participated in coordinated "sickouts" alongside employees from other retailers like Target and Amazon, protesting inadequate safety measures such as mask enforcement and hazard pay; these actions involved calling out en masse but did not result in formal NLRB-protected strikes specific to Walmart. More recently, in May 2025, consumer advocacy groups called for a week-long citing underpayment and corporate practices, though this was not a worker-led strike. Discrimination claims against Walmart have predominantly involved allegations under Title VII of the Civil Rights Act and the Americans with Disabilities Act, with the Equal Employment Opportunity Commission (EEOC) filing several suits. In the landmark Dukes v. Wal-Mart Stores, Inc. (2001–2011), female employees alleged systemic gender discrimination in pay and promotions affecting 1.5 million women; the U.S. Supreme Court ruled 5–4 against class certification, citing insufficient evidence of company-wide commonality in decision-making practices, effectively dismantling the case as a . Walmart settled individual gender discrimination claims in various cases, including a 2024 EEOC suit for $60,000 over refusal to promote a mother of young children, accompanied by anti-discrimination training commitments. Racial and discrimination allegations have also led to notable outcomes. In 2022, the EEOC sued Walmart for race and gender discrimination in job assignments and harassment at a Wisconsin facility, violating Title VII. cases include a 2021 federal jury verdict of $125 million (including ) against Walmart for firing a long-term employee with after 16 years, though such awards often face reduction on appeal; multiple 2024 EEOC settlements addressed failure to accommodate disabilities, totaling $250,000 across cases in for relief and injunctive measures like policy revisions. Walmart has attributed many claims to isolated incidents rather than policy failures, settling to resolve litigation while contesting broad patterns of bias. These disputes reflect ongoing tensions, with settlements providing monetary relief but courts frequently rejecting expansive class claims due to evidentiary hurdles.

Environmental and Ethical Criticisms

Walmart has been criticized for its substantial contribution to , with operational scope 1 and scope 2 emissions rising 1.1% year-over-year to nearly 16 million metric tons of CO2 equivalent in 2024. The company disclosed in December 2024 that it is likely to miss its 2025 target of a 35% absolute reduction and its 2030 target of a 65% reduction from a 2015 baseline, attributing shortfalls to uncertainties, infrastructure limitations, and technology constraints amid business expansion. Similarly, operational emissions grew 3.9% in 2023, driven by increased store operations and logistics. Critics have highlighted Walmart's role in plastic pollution, noting the company's generation of 2.1 million metric tons of in 2022, including significant non-recyclable portions. Walmart reported in February 2025 that it will not achieve its 2025 goals for reducing packaging or enhancing recyclability, with virgin usage rising 6% due to pressures and consumer demand for convenience. An investigation in April 2024 traced bags collected from Walmart U.S. recycling bins to waste-to-energy facilities in , where they contribute to rather than true . A June 2025 study further implicated Walmart among 56 corporations accounting for 50% of branded found on beaches, underscoring the retailer's scale in perpetuating single-use plastics despite pledges to phase them out. On ethical grounds, Walmart settled violations in June 2019 by paying $282 million to U.S. authorities, resolving probes into over $24 million in bribes paid by its subsidiary from 2002 to 2005 to local officials for building permits, zoning approvals, and other favors accelerating store expansions. The , first detailed in a 2012 New York Times report, involved internal cover-ups and extended to similar practices in , , and , prompting enhanced compliance measures but drawing accusations of systemic ethical lapses in global operations. Walmart's has drawn ethical scrutiny for enabling labor abuses, including forced labor, wage , and unsafe conditions among suppliers. A 2019 report documented such issues in garment factories sourcing for Walmart in , , and , where workers faced excessive hours, , and retaliation for complaints. In the sector, a 2015 Food Chain Workers Alliance analysis revealed Walmart's reliance on suppliers fined for violations and linked to slave labor, arguing that the retailer's pressure for low prices incentivizes corner-cutting on worker protections and environmental standards. These practices persist despite Walmart's supplier codes prohibiting involuntary labor, with critics contending that enforcement remains inadequate given the company's vast third-party network.

Philanthropy and Sustainability Efforts

Walmart Foundation and Charitable Initiatives

The Walmart Foundation, established in 1979 by Walmart founder as the company's charitable arm, channels philanthropic efforts through financial grants to qualified public charities, excluding individuals, product donations, athletic sponsorships, or political causes. Its grants emphasize areas where Walmart's operational scale can amplify outcomes, such as local community support, hunger alleviation, , and workforce opportunity programs. The foundation maintains an grantee database listing awards exceeding $25,000 over the prior two years, promoting transparency in allocation. In fiscal year 2023, Walmart and the Walmart Foundation disbursed more than $1.7 billion in cash and in-kind contributions worldwide, representing approximately 1-2% of pretax profits consistent with Walton's early directives for corporate giving. By fiscal year 2025, total contributions reached $2 billion, directed toward high-impact interventions like —reaching 1.1 million individuals in fiscal year 2022 alone—and food insecurity reduction efforts ongoing since 2006. Local grants, administered via Walmart stores, Sam's Clubs, and distribution centers, range from $250 to $5,000 per award to address community-specific needs such as disaster relief or . Key initiatives include the Spark Good platform, which facilitates and direct funding for nonprofits, and targeted programs advancing environmental and social standards in global supply chains, such as a $37 million from 2011 onward to empower over 175,000 women smallholder farmers through aggregation and . Program evaluations, such as those for grants in , document measurable gains in farmer incomes and supply efficiency, though broader systemic impacts remain tied to specific grantee outcomes rather than comprehensive independent audits. Eligibility requires alignment with focus areas, with applications processed online for financial support only.

ESG Commitments and Measurable Outcomes

Walmart's ESG framework emphasizes through priorities in opportunity, , community, and and integrity, integrating environmental protection, social advancement, and governance accountability into its operations. The company has set science-based targets aligned with initiatives like the (SBTi), though progress reports indicate shortfalls in several environmental metrics relative to interim goals. In the environmental domain, Walmart committed to reducing Scope 1 and 2 greenhouse gas emissions by 35% by 2025 and 65% by 2030 from a 2015 baseline, achieving absolute zero emissions by 2040, sourcing 50% of global electricity from renewables by 2025 and 100% by 2035, diverting 90% of operational waste from landfills in the U.S., Canada, and Mexico by 2025, and reducing global food loss and waste intensity by 50% by 2030 versus 2016. Measurable outcomes in fiscal year 2025 (FY2025) show Scope 1 and 2 emissions at 15.65 million metric tons of CO2 equivalent in calendar year 2024, a 18.1% reduction from 2015 but below the 35% target, with a 1.1% year-over-year increase attributed to operational growth. Renewable energy supplied 48.5% of global electricity needs, nearing but missing the 2025 goal; waste diversion reached 83.5% globally (84.4% in the U.S.), short of 90%; and food loss/waste intensity declined 12.1% from 2016, far from the 2030 target. Project Gigaton, aimed at supplier emissions reductions, avoided 1.19 billion metric tons of CO2 equivalent since 2017, while clean energy projects enabled 1,886 megawatts in 2024 toward a 10 gigawatts goal by 2030. Packaging goals lagged, with only 66.1% of private brand packaging recyclable, reusable, or compostable (target: 100% by 2025) and virgin plastic use up 5.4% from 2020 (target: 15% reduction). Social commitments center on workforce opportunity and community support, including raising average U.S. hourly wages to $18 by mid-FY2026, investing $1 billion in associate training and education by FY2026, sourcing 75% of U.S. salaried managers from hourly roles, doubling U.S. locally grown produce sales to $1.86 billion by FY2026 from a FY2017 baseline, and donating food from 97.7% of U.S. stores. In FY2025, average hourly wages exceeded $18 ahead of schedule (up 28% since FY2021), 75% of U.S. salaried managers originated from hourly positions, and $803 million was invested in training, with 41,000 associates enrolling in Live Better U programs. U.S. diversity included 51.0% women and 20.1% African American/ associates, with at 43.9% women and 11.5% African American/; 100,400 U.S. associates received promotions. efforts yielded $2 billion in global cash and in-kind donations, 855 million pounds of food donated (752 million in the U.S.), and $1.49 billion in U.S. local produce sales; included $24.3 million in aid for events like Hurricanes Helene and Milton. Responsible sourcing audited 13,300 supplier facilities across 77 countries, with 87.3% rated compliant (green/yellow), and advanced to 76.5% antibiotic-free Member's Mark . Governance efforts prioritize , compliance, , and transparency, with commitments to robust supplier auditing, measures, and data aligned with themes of and trust. Outcomes include high supplier audit compliance rates under social sourcing (87.3% green/yellow) and investments in training, though specific quantitative metrics for like violation rates or board diversity are not detailed in the FY2025 report beyond integrated social audits. The framework supports systemic risk management in supply chains, emphasizing verifiable progress over aspirational claims.

References

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