Walmart Frontline By Chakresh Jain

Sam Walton, Founder

“ My Dad created Wal-Mart to help people save money so they can have a better life. This mission remains as relevant now as it was in 1962.” Rob Walton, (Chairman of the Board)

WAL*MART $ The world’s largest public corporation by revenue $ The largest private employer in the world $ The largest grocery retailer in the USA $ The largest toy seller in America $ Each year 93% of the American households do shopping in some Wal-Mart store at least once $ In 2006 around 7,2 billions of people will enter some of the WalMart stores

Introduction Wal-Mart is a global retail organization, in the business of serving customers. In the United States, their operations are centered operating retail stores and membership warehouse clubs. International, they are centered on retail stores, warehouse clubs and restaurants. Their business is to offer customers quality merchandise at low prices. Wal-Mart mission is to be the place where prices are low and value and customer service are high everyday.

BOARD OF DIRECTORS

Co-Founders Sam and Bud Walton

S. Robson Walton Chairman of Board of Directors

H. Lee Scott, Jr. Chairman of the Executive Committee of the Board of Directors

Michael T. Duke President and Chief Executive Officer

History of Wal-Mart The company’s founder is Sam Walton. He was born in 1918 at Oklahoma. In 1940,he worked for the famous retailer,JC Penney. By 1969, Walton had established 18 Wal-Mart stores. • By late 1970s, the retail chain had established a pharmacy and an auto service center. In 1980s, Wal-Mart continued to grow due to huge customer demands in small towns. By 1984, there were 640 Wal-Mart stores in U.S. Wal-Mart suffered a setback in 1992, when Walton died.

History of Wal-Mart… •

But it continued its growth in the 1990s, focusing on overseas stores. • 1992, Mexico (joint venture with Cifra) • •

1994, Canada (acquired 122 Woolco stores from 1997, Woolworth)

Germany (acquired 21 store of Wertkauf) Korea, Brazil, and so on.

Wal-Mart

RETAIL DIVISIONS Wal-Mart Stores The flagship retail division of Wal-Mart Stores, Inc. 36 departments including family apparel, health & beauty aids, household needs, electronics, toys, fabrics & crafts, lawn & garden, jewelry and shoes Some include a pharmacy, Tire & Lube Express, garden center, snack bar or restaurant, Vision Center and One-Hour Photo Processing Operate on an "Every Day Low Price" philosophy and are able to maintain their low price structure through conscientious expense control.

Super Centers Wal-Mart stores with grocery departments that provide one-stop family shopping convenience Most include Wal-Mart Specialty Shops (Vision Center, Tire & Lube Express and One-Hour Photo Processing) Provide departmental directories, 24-hour service, and self-scanning registers for fast, efficient checkout service. Average between 100,000 and 220,000 square feet of retail space

SAM’S CLUB Country's largest membership warehouse club operating with a renewed focus on serving small business owners. More than 530 Clubs in the United States serving 46 million members Sells business items, personal items including designer-label apparel, electronics, jewelry, furniture, seasonal merchandise, and restaurantquality food and wine

Neighborhood Market Offer groceries, pharmaceuticals and general merchandise Include fresh produce, deli foods, fresh meat and dairy items, health and beauty aids, one-hour photo, drive-through pharmacies, pet supplies, and household chemicals

SPECIALTY DIVISIONS

Tire & Lube Express Wal-Mart Optical Wal-Mart Pharmacy Wal-Mart Vacations Wal-Mart Connect Wal-Mart’s Used

BRANDS Keepsake – Jewelry Faded Glory – Apparel No Boundaries – Accessories GEORGE – Ladies Apparel Mary-Kate and Ashley – Girls Department Equate – Health and Beauty One Source – Vitamins Ol’ Roy – Pet Food Puritan – Clothing Great Value – Food Sam’s Choice – Food and Beverage

SALES BY SEGMENT

Total Sales Net Sales

Percent of Total

Percent Increase

Wal-Mart U.S.

$255,745

63.7%

6.8%

International

98,645

24.6%

9.1%

Sam’s Club

46,854

11.7%

5.6%

Total net sales

$401,244

100.0%

7.2%

Financial Highlights(2009) Sales in billions

Except per share data

2009 Net sales

$401.2

Net sales increase

$7.2%

Operating income

$ 22.8

Earnings per share

$ 3.35

Dividend per share

$ 0.95

Financial Highlights Net sales(1)

2009

2008

2007

2006

2005

Net sales increase

$401.2

$374.3

$344.8 11.6%

$3087.9 9.8%

$281.5 11.4%

Operating income(1)

7.2%

8.6%

$20.5

$18.7

$17.3

Earnings per share(2)

$ 22.8

$22.0

$2.92

$2.72

$2.46

Dividend per share(3)

$ 3.35

$3.16

$0.67

$0.60

$0.52

(Amounts in millions)

$ 0.95

$0.88

Net cash provided by operating activities

January 31, 2009

January 31, 2008

Payments for property and equipment

$ 23,147

$ 20,642

Free cash flow

(11,499)

(14,937)

$11,648

$5,705

Twelvemonths Ended

Some present factor of wal-mart Today 7873 stores worldwide in countries like – Honduras,Japan,Mexico, Argentina , Costa- rica, Canada , China El- salvadore ,Guatemala and the U.K. & U.S.A. 1.3 million people working Sales for 2008 estimated to be more than $ 1billion per day

Wal-mart around the world United

States ★ 4,258 Stores Argentina ★ 28 Units Brazil ★ 345 Units Canada ★ 318 Units China ★ 243 Units Costa Rica ★ 164 Units Japan ★ 371 Units  Mexico ★ 1,197 Units United Kingdom ★ 358 Units

wal-mart as a International level Country

super markets Argentina — Brazil (1) 155 Canada (2) — Chile 46 China — Costa Rica 25 Guatemala 29 Honduras 7 Japan 264 Mexico (3) 163 Nicaragua 7 Puerto Rico 31 United Kingdom 37

Grand Total

1,064

discount super stores center — 22 — 34 256 56 76 — — 132 122 — 109 — 36 — — — 67 154 44 — 7 8 — 30

762

4 36

hyper markets — 71 — 75 103 6 6 1 106 — — — —

other 6 85 6 — 8 11 16 6 1 371 813 — 10 21

370

98

total 28 345 318 197 243 164 160 50 1,197 51 56 358

3,615

Overview of Wal-Mart • There are 4 different segments • Wal-Mart Stores- sales amounted to 64.3% – Discount Stores- 1,568 U.S – Supercenters- 1,258 U.S – Neighborhood Markets- 49 stores U.S • Sam’s Club- sales amounted to 13.0% – 525 stores U.S – Is a member only, cash and carry operations • International- sales amounted to 16.7% – Discount stores- 942 Sam’s Clubs- 71 – Supercenters- 238 19, 2008 Neighborhood Market- April 37 • Other- amounted to 6.1%

COMPETITORS Target Corp. Wal-Mart’s primary competitor and the nation’s second largest retailer

Kmart Holding Corp. Wal-Mart’s secondary competitor and The nation’s third largest retailer

INTRODUCTION OF S.C.M Supply chain “Consists of all parties involved, directly or indirectly, in the procurement of a product or raw material” Supply chain management (SCM) – “Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability”

Supply Chain

Supply Chain  All activities associated with the flow and transformation of goods and services from raw materials to the end user, the customer  A sequence of business activities from suppliers through customers that provide the products, services, and information to achieve customer satisfaction

The Supply Chain Information Suppliers

Producers

Distributors

Customers

Materials, parts, subassemblies, and services

Finished goods, end products and services

Package and delivery

Total satisfaction with quality, price, delivery, and service

Inventory

Products and Services

Products and Services

Inventory

Inventory

Cash

Products and Services

The Wal-Mart Supply Chain

Information in the Supply Chain  Consolidation of purchasing from all suppliers  Intercompany and intra company information access  Data interchange  Data acquisition at the point of origin and point of sale  Instantaneous updating of inventory levels

Supply Chain Processes

Importance of Supply Chain Management

Synchronization of activities required to achieve maximum competitive benefits Coordination, cooperation, and communication Rapid flow of information Vertical integration

Benefit of SCM to Wal-Mart

“It’s really all about service to our customers. Our investment in this technology helps our supplier partners and Wal-Mart buyers provide customers with what they want: the right product in the right store at the right price.” ---- Tom Coughlin, President and CEO of the Wal-Mart

AWARDS & RECOGNITION 2003 –Most admired company in America – FORTUNE magazine 2002 – Ron Brown Award for Corporate Leadership (recognizes companies for outstanding employee and community relations)No.1 on the FORTUNE 500 list 2001 – Hispanic Business Magazine named Wal-Mart one of the Top 25 Diversity Recruitment Programs for its aggressive. 2000 – No.1 Corporate Citizen in America – Cone/Roper Report (an annual national survey regarding corporate citizenship) 1999 –Retailer of the Century – Discount Store News and Mass Market Retailers

Future plans of wal-mart Wal-mart ended the year with more than 4,200 stores in 50 states. Between remodels and new stores, we plan to update approximately 700 stores this year to improve the customer experience and drive sales More Brands Than Ever: Wal-Mart (U.S.) continues to increase its offerings of top brands for less, including Sony®, Samsung®, Dell®, Nintendo®, Garmin®, Dyson®, Kitchen Aid®, Chicago Cutlery®, L.e.i.®, Dan skin Now® and Starter®.

Future plans of wal-mart Expanding in Asia: We opened a Hong Kong regional office to facilitate long-term opportunities in Asia, to support existing operations in Japan, China and India, and to further build our leadership team. New Market: Wal-Mart entered Chile through the acquisition of a controlling interest in Distribución y Servicio (D&S) , Chile’s largest food retailer. By 2011, our China stores expect to buy

Future plans of wal-mart Creating Jobs: Wal-Mart created approximately 63,000 jobs around the world in 2008, including more than 33,000 in the United States. We plan to create tens of thousands more jobs this year.

What it takes to be a • The Winning strategy- selling branded “WAL-MART products at low cost.

• Non dependence on any single vendor. • Reliability on its own distribution system. •Wal-Mart was offering low prices, customer satisfaction guaranteed, and hours that were realistic for the way people wanted to shop.