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WalMart Stores, Inc'

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Walmart.com. Official website for Wal-Mart, Inc. Offers 24-hour online shopping ... KMART HOLDING CORP. (KMRT) FINANCIAL INDICATORS ... – PowerPoint PPT presentation

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Title: WalMart Stores, Inc'


1
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2
WAL?MART Stores, Inc.
  • Worlds largest retailer
  • 244.5 billion in sales in the fiscal year ending
    Jan. 31, 2003
  • Employs more than 1.3 million associates
    worldwide
  • More than 3,200 facilities in the United States
  • More than 100 million customers per week visit
    Wal-Mart stores worldwide.

3
Co-Founders Sam and Bud Walton
H. Lee Scott, Jr. President and Chief Executive
Officer
David D. Glass Chairman of the Executive
Committee of the Board of Directors
  • John T. Walton
  • Chairman of Board of Directors

4
Sam Waltons Three Basic Beliefs
(Established in 1962 with the first Wal-Mart in
Rogers, Ark.)
1 Respect the Individual Every customer and
employee deserves to be treated with respect and
dignity 2 Service to Our Customers Offer the
lowest prices with the best possible service 3
Strive for Excellence Find new and innovative
ways to constantly improve

5
CUSTOMER SERVICE "Let's be the most friendly
offer a smile of welcome and assistance to all
who do us a favor by entering our stores. Give
better service over and beyond what our
customers expect. Exceed your customers'
expectations If you do, they'll come back over
and over again." Sam Walton
Wal-Mart greeters have welcomed customers
into stores since 1980. Greeters show
customers that Wal-Mart is a friendly place to
shop. They make customers feel welcome
and help them enjoy their shopping experience.
Greeters also provide directions and answer
questions.
6
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
  • program to
    hire and promote Latinos.
  • 2000 No. 1 Corporate Citizen in America
    Cone/Roper Report
  • (an annual national survey
    regarding philanthropy and corporate citizenship)
  • 1999 Retailer of the Century Discount Store
    News and
  • Mass Market Retailers

7
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

8
  • SuperCenters
  • 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

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  • SAMS 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 restaurant-quality
  • food and wine

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  • 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

13
  • Wal-Mart International
  • Operates more than 1,300 units and employs more
    than 303,000 associates
  • in nine countries
  • Argentina China Mexico
  • Brazil Germany Puerto Rico
  • Canada Korea United Kingdom

14
Wal-Mart operates 11 Supercenters and one
distribution center and employs over 4,000
associates in Argentina
15
  • Wal-Mart has 31 stores in China employing more
    than 15,000 associates

16
  • Wal-Mart operates more
  • than 625 units in 59
  • cities and employs
  • 96,329 associates
  • Wal-Mart de Mexico is
  • the largest employer and
  • the most important
  • retailer in Mexico

17
Walmart.com
  • Official website for Wal-Mart, Inc.
  • Offers 24-hour online shopping
  • Provides company information to Internet users

18
  • 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
  • Sams Choice Food and Beverage

19
SPECIALTY DIVISIONS
  • Tire Lube Express
  • Wal-Mart Optical
  • Wal-Mart Pharmacy
  • Wal-Mart Vacations
  • Wal-Mart Connect
  • Wal-Marts Used
  • Fixture Auctions

20
COMPETITORS
Target Corp. Wal-Marts primary competitor and
the nations second largest retailer Kmart
Holding Corp. Wal-Marts secondary competitor and
the nations third largest retailer
21
WAL-MART STORES, INC. (WMT) STOCK PERFORMANCE
COMPARED TO TARGET CORP. (TGT) AND KMART
HOLDING CORP. (KMRT)
22
FINANCIAL INDICATORS
1,730 shares of WMT stock were purchased at
57.78 per share on September 17, 2003. On
November 28, 2003, WMT stock closed at 55.64.
As of November 28, 2003, 3,742.80 of the
100,000 invested was lost.
  • WAL-MART (WMT) COMPARED TO DOW JONES INDUSTRY
    INDEX- RETAILERS BROADLINE

23
  • Wal-Mart Stores, Inc. believes each Wal-Mart
    store,
  • SAM'S CLUB and distribution center has a
    responsibility to contribute to the well being of
    the local community.

Wal-Mart's Good.Works. community involvement
program is based on the philosophy of operating
globally and giving back locally.
24
Wal-Mart Stores, Inc. encourages its employees to
give back to their communities through the
Volunteerism Always Pays Program (VAP).Wal-Mart
makes donations to community non-profit
organizations where Wal-Mart employees volunteer.
In 2002, Wal-Mart associates volunteered more
than 1 million hours.
  • Wal-Mart gave 3.1 million to charitable
    community organizations through the Volunteerism
    Always Pays Program

25
  • In 2003 Wal-Mart will contribute more than
  • 1.7 million to local schools through
    Environmental Grants.
  • Every Wal-Mart and SAMS CLUB location awards an
    Environmental Grant of 500 to a local school for
    a project to clean up an area, landscape a
    community property, or beautify a portion of its
    community.
  • Wal-Mart has been awarding environmental grants
    since 1990.

26
Wal-Mart has given 80 million in scholarships
since 1979 Every store and club awards a 1,000
Sam Walton Community Scholarship to two
college-bound high school seniors. In addition,
the Wal-Mart offers scholarships to associates
and their dependents.
  • Talia Glover
  • Recipient of the
  • Higher Reach
  • Scholarship

27
  • Wal-Mart has donated more than
  • 184 million in 19 years to United Way chapters
  • In 2002, Wal-Mart and its associates contributed
    more than 19 million dollars through employee
    and company contributions to support local United
    Way chapters across the country.
  • At each Wal-Mart or SAM'S CLUB
  • grand opening, a check is presented to a local
    United Way.

28
Wal-Mart raised more than 265 million in 15
years for Children's Miracle Network In 2002,
Wal-Mart Stores, Inc. raised more than 34
million for Children's Miracle Network, which is
the highest amount contributed by all Children's
Miracle Network corporate sponsors. Every
dollar raised is distributed to a local
CMN-affiliated hospital. Children's Miracle
Network hospitals treat millions of children like
Nicole Takemura and Calum Ahmed each year.
29
Wal-Mart donated 100,000 to the Fort Campbell
Army Emergency Relief fund, which provides
financial help to soldiers and their families in
times of need.
Community Bike Giveaway Wal-Mart donated 75
bicycles with minor imperfections to the Boston
Society of Vulcans (an organization of
firefighters), who repaired the bikes and gave
them to children in their community.
  • Wal-Mart expects to provide 20 million in
  • funding to charitable organizations across
  • the country this year to match the 20 million
  • raised during the 2002 holidays.

30
STRENGTHS
  • Family Orientated
  • Edited CDs
  • No Playboy
  • Generous
  • Americas largest corporate cash giver
  • Gave 150 million in 2002 to support communities
    and non-profit organizations
  • Diverse staff
  • Many job opportunities for communities
  • Employs the highest number of African Americans
    and Hispanics in the United States
  • Convenient
  • Everything customers need in one place
  • Many locations worldwide
  • Inexpensive
  • Always low prices. Always.

31
WEAKNESSES
  • Lower quality products
  • Compared to stores like Target that sell products
    at a slightly higher price
  • Hurts smaller businesses
  • Local shops cant compete
  • Stores are too big, disorienting
  • Customers cant find what they need
  • Some employees do not speak English
  • Not helpful to customers
  • Lower average pay
  • Sales clerks average only 14,000 a year
  • Fewer health benefits
  • Pays 30 less for health care coverage than
    industry average
  • Sells many foreign-made products

32
OPPORTUNITIES
  • Publicize higher quality products that the stores
    sell at a low cost
  • Increase concentration on the elderly and the
    Hispanic population,
  • two of Wal-Mart growing customer bases
  • Gain support from people who have neutral
    feelings about Wal-Mart in their community
  • Publicize the new fashionable clothing options
    Wal-Mart has for women
  • GEORGE new brand of fashionable business
    apparel for women
  • Use celebrities with name brand products at
    Wal-Mart to publicize those products
  • An example is Mary-Kate and Ashley Olsen
  • Publicize philanthropic efforts

33
THREATS
  • Employing illegal aliens and paying them unfair
    wages
  • Pending lawsuit involving discrimination against
    women
  • People questioning if Wal-Mart is too powerful
  • Anti-Wal-Mart sentiments
  • Community campaigns to keep Wal-Mart out of towns
  • Government complaints
  • At least 60 government complaints concerning
    possible Wal-Mart anti-union activities

34
RECOMMEDATION
  • Publics
  • People who are opposed to Wal-Mart
  • People who support Wal-Mart
  • People who have neutral feelings towards Wal-Mart
  • Objective
  • Increase support for Wal-Mart in communities
    where
  • Wal-Mart stores are currently present or may
    eventually
  • be present by 15 before December 31, 2004

35
STRATEGY
  • Begin a nationwide campaign to create
  • positive sentiments within communities
  • about the presence of Wal-Mart stores
  • using face-to-face communication

36
  • TACTICS
  • Town meetings
  • Wal-Mart Representatives attend meetings to gage
    the sentiments towards Wal-Mart in communities
    and build positive relationships with all publics
    in each community
  • Discuss benefits of Wal-Marts presence in
    communities
  • Discover communities concerns regarding the
    presence of Wal-Mart and discuss mutually
    beneficial solutions
  • Community events
  • Sponsor local events to strengthen relationships
    and create positive attitudes towards Wal-Mart
  • Use these philanthropic events to show how
    Wal-Mart positively contributes to communities
  • Continue current philanthropic programs

37
STRATEGY
  • Use one-way communication to publicize
  • local philanthropy and inform publics of
  • the benefits that Wal-Mart provides in
  • communities

38
  • TACTICS
  • Printed Media
  • Distribute press releases to newspapers and other
    local publications about Wal-Marts participation
    in local events and community contributions
  • Use newspaper inserts to publicize philanthropic
    programs
  • Utilize opinion leaders who support Wal-Mart
  • such as governors, mayors and other local leaders
  • to influence their followers

39
EVALUATION
  • Distribute surveys at town meetings and conduct
    focus groups comprised of randomly selected
    members of each community to gauge local
    sentiments towards the presence of Wal-Mart
  • Use surveys at town meetings to ascertain public
    sentiment before and after the campaign
  • Focus groups will be held before the campaign
    (December 2003), during the campaign (June 2004),
    and after the campaign (January 2005) to
    determine the progress and success of the
    campaign
  • Keep records of opinions voiced at town meetings
    or in the local media concerning Wal-Mart to
    follow public opinion regarding the presence of
    Wal-Mart in communities

40
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