The Best of the Century - Brief Article - Statistical Data Included

Wal-Mart: the World's Largest Retailer

in the three decades since it became a public company, Wal-Mart has established a record of expansion that is the envy of any company in any industry.

Already the world's largest retailer and in a short time to be the largest company, Wal-Mart finished its greatest in quantity recent fiscal year with annual sales of $165 billion and gin income of $5.6 billion. In doing in the way that it became the world's third-largest company, surpassing DaimlerChrysler AG with sales of $151 billion and Ford with sales of $163 billion. single General Motors with sales of $176 billion and ExxonMobil with sales of $186 billion are larger than Wal-Mart.

This past year also included the company's eleventh stock split, a heightened emphasis upon e-commerce and a $10.8 billion acquisition of Asda in the United Kingdom. In addition Wal-Mart uncloseed 157 supercenters, 31 discount stores, 19 Sam's cudgels 71 international units and three distribution centers

Looking back at the past decade, Wal-Mart's profits increased 300 percent and sales grew by the agency of $112 billion. It added almost $30 billion in sales during the last fiscal year alone.

As Wal-Mart marches steadily toward becoming the world's first $200 billion company, it is getting the piece of work done through a series of interlocking strategies and a belief a whole based on simple principles:

Supercenters

in truth the engine that drives the domestic development machine and a retail format popular with time-starved customers, supercenter have generated a intermix annual growth rate of 82 percent since 1992 significantly faster than the overall supercenter industry's average annual growing rate. With sales estimated to reach $80 billion through 2003 (up nearly 129 percent above FY 1999's $35 billion), within a not many years supercenters will surpass discount stores in sales and profits.

Discount Stores

These traditional stores bring the company on the map and allowed it to expand in markets large and small. Since the first individual opened in 1962 in Roger Ark., discount stores have provided the magnitude of the retailer's sates and profits. Last year discount stores accounted for an estimated $65 billion in domestic sales from approximately 1800 units on the outside of Wal-Mart's total sales of $165 billion. The discount store base--although slowly shrinking as Wal-Mart changes many units into supercenters--remains a core vehicle. With aliment becoming a critical part of Wal-Mart's overall retail strategy, it's clear the traditional discount store will hold fast evolving to meet consumers' needs

Sam's Club

The 17-year-old Sam's bludgeon division recently has taken membership retailing to of recent origin heights with a slew of added services and an upscale, of recent origin look that caters to a higher-income demographic. Because it caters to business customers as well as individual members who like buying in size to get wholesale prices, the division has base a profitable niche not serv through Wal-Mart's discount stores or supercenter With 463 bludgeons last year the division saw sales increase 84 percent to $248 billion and operating profit increase 168 percent to $759 million. Those figures don't take into account Sam's bludgeons in other countries, which attend to produce high volumes, on the other hand fall under the company's international division.

Internet

Wal-Mart was the first general merchandise retailer to commit to e-commerce launching its site in 1996 It continues to push toward its inaugural goal: to become the dominant retail force in the rapidly growing on-line world.

The company kicked not on 2000 with several initiatives to further its e-commerce goals. A revamped website first attempted in early January offering a broader assortment of merchandise and services. Wal-Mart also announced a wide-ranging strategic alliance with America Online that will include a co-branded Internet service as well as numerous cross-marketing and promotion initiatives. The company also announced it would create an independent company in conjunction with Silicon Valley, Calif.-based hazard capital firm Accel Partners to operate Wal-Mart.com. The of recent origin venture is eventually expected to be spun not upon in a public stock offering.

International

International acquisitions have helped Wal-Mart increase sales last year by the agency of 85 percent to $22.7 billion. There are now more than 1000 international stores in nine countries, including Argentina (13) Brazil (14) Canada (166) Germany (95) Mexico (462) Puerto Rico (15) and the United Kingdom (232) and, beneath joint venture agreements, in China (six) and Korea (five). Analysts await earnings and profits to benefit as Wal-Mart works to incorporate certain operational efficiencies into the international units. Longer mete expectations are Wal-Mart will expand its nearness in existing international markets as well as entering of recent origin countries.

Distribution and Logistics

Highly automated distribution center a devotion to technology and a private barter fleet have enabled Wal-Mart to obey its customers by getting the right productions on the shelves when they ne to be there. That dedication continues today as Wal-Mart embarks upon its most aggressive expansion of distribution capabilities by the agency of adding four general merchandise distribution center four aliment distribution centers and two perishables distribution center this year.