Walmart Around The World

Walmart around the World
Section 2 | Retail Management | PGP 2015
History
On July 2, 1962, Sam Walton
opened the first Walmart store
in Rogers, Ark
In 1969, the company officially
incorporated as Wal-Mart Stores,
Inc
In 1991, through a joint venture with

Cifra, a Mexican retail company,
Walmart went global, opening a
Sams Club in Mexico City
In 1994, Walmart expanded into
Canada with the purchase of 122
Woolco stores, and in 1996 Walmart
opened its first stores in China
In 1970, Walmart became a

publicly traded company. The
first stock was sold at $16.50
per share
In the 1980s, the first Sam's Club opened,
serving small businesses and individuals,
and the first Walmart Supercenter
opened, combining a supermarket with
general merchandise
In 2002, Walmart entered the

Japanese market through its
investment in Seiyu
By 2014, The company employs 2.3
million associates worldwide and
serves more than 200 million
customers each week at more than
11,000 stores in 27 countries
Interesting Trivia
Walmart averages a profit of $1.8 million
every hour
37 million people shop at Wal-Mart every day;
thats more than the population of Canada
The Walton family is worth $152 billion, about as

much as Bill Gates, Warren Buffet, and Michael
Bloomberg combined
90% of the Americans live within 15 minutes of a
Wal-Mart
Wal-Marts top selling item in 2014 was the
banana
Mexico
Replicated EDLP (Every Day
Low Prices)
In the year 2000, Walmart
changed its name, in
Mexico, to Walmex
Focus on convenience and operational

efficiency
By the year 2013, Walmart

was operating more than
2000 stores catering to
consumers of different
economic strata
Cheap labour created lower

costs
Walmart controlled more

than 55% of Mexican Retail
market
Mishaps included creating

large parking lots in areas
where most consumers take
buses
Partnered w/ local trucking company

to perfect logistical challenges in
SCM system
Canada
Wal-Mart had sales of $1.4
billion but unprofitable due
to poor upper management
Wal-Mart re-branded all
stores and sales soared
265% between 1994-2000
Walmart Canada followed
similar operating model of
Walmart US stores
Constant marketing
through local
newspapers
Carried wide arrange of

furniture, consumer
electronics and pet supplies
Wal-Mart has a slogan of
Save Money. Live Better.
2009 onwards in Canada
On August 15, 2013, the Supreme
Court of Canada cleared the way for
Walmart employees in Weyburn,
Saskatchewan who voted 51-5 to
decertify United Food and Commercial
Workers as their representative union.
This left no unionized Wal-Mart stores in
the whole of Canada
Brazil
Entered Brazilian market in
1995 by launching stores
with US based
formats/operating strategy
Brought 118 Bompreco, and
140 Sonae SGPS SA stores
in 2004
Became 3rd largest retailer
by 2011 with sales of $11.5
billion a year
CarreFour was biggest
competitor
In 2013, Walmart launched

Toda-Dia, small discount
stores targeted to Middle
class
Low Prices geared
towards mainly towards
low income earners
EDLP model of low prices
altered to meet periodic
cycles of discounts which
was prevalent
As of June 2015, Wal-Mart
had 73,314 employees in
Brazil
Argentina
Wal-Mart entered in 1995
by opening up own stores
(organic growth)
Wal-Mart had 94 stores
across Argentina by 2013
Expanded through
Changomas
Express
Struggles included slow
expansion, lack of
partnering, and high
competition
Wal-Mart had 12,096

employees working in
Argentina in a total of 107
Retail Units
In 2014, Argentine President
Cristina Kirchner imposed
fines on retailers, including
Wal-Mart for failing to keep
in stock enough goods on
which she had imposed
price controls
In 2015, Wal-Mart
announced a series of
leadership moves in its
Latin American division
Central
America
Wal-Mart expanded to
Central America in 2005
Acquired 33.33% stake in
CARHCO, Central America's
largest retailer, with 363
supermarkets and other
stores in five countries
Walmart had sales of over
$4 billion dollars from
operations in Central
America
Walmart capitalized on
High localized nature of
stores
Walmart merged Mexico &
Central America operations
in 2010
The asset sales are part of
companys strategy of
focusing on its core
business as it seek to
double sales between 2014
and 2024
Chile
Wal-Mart entered Chile in
2009 by
acquiring/controlling stake
in Distribucion y Servico
(domestic player)
Wal-Mart was able to build
a large network in the
country
Credit Services- simulated
net growth for WalMart
By 2012, Wal-Mart held

34% of market share with
300 stores
Wal-Mart Chiles consumer
research group, which tracks
shoppers perception of prices and
shopping habits, is one of the
companys most sophisticated
Chilean consumers are convinced
that the price gap between WalMarts Lider and its competitors is
twice what it actually is the
largest in any of its operations
China
Entered China in 1996,
partnering w/ local investor
to open Walmart Super
center and Sam's Club
Chinese regulations
required joint ventures,
hence Wal-Mart could not
go on its own
Wal-Mart began targeting
middle class with EDLP
mode
Wal-Mart struggled
replicating in China the
success they had elsewhere
Landscape of China highly
fragmented and had thousands of
moment and pop stores
Many instances caused
them to have limited
success, and Walmart
operations yielded profit in
2008, 12 years after they
entered the market
China
South
Korea
Wal-Mart entered the

country in 1998 by
acquiring handful of Marko
stores
EDLP model poor fit for
South Korea because of
their luxurious, service
oriented shopping habits
Local consumers wanted
diversity amongst products
Wal-Mart faced Stiff

competition from local
stores
8 years of disappointment
results in a loss of 9.9 billion
dollars in 2005
In 2006, Wal-Mart said that
it had agreed to sell all 16
of its South Korean outlets
to Shinsegae, a local
retailer, for $882 million
Japan
Wal-Mart entered Japan in
2002 acquiring 6% share in
Seiyu, struggling
supermarket chain
Created to Seiyu
into a whole new
subsidiary
Once again struggled to
replicate EDLP model
Japanese consumers
associated low prices with
low quality
As of June 2015, Wal-Mart

had 35,328 employees
working in Japan in a total
of 343 Retail Units
By 2016, Walmart expects its
Japan business to focus on
remodelling existing stores
rather than opening new ones
this year, citing fierce
competition and consumer
reluctance to spend freely
amid uncertain economic
times
Europe
In Germany, Wal-Mart
acquired 2 companies:
Wertkauf & Interspar
Walmart failed because of
cultural reasons, and they
learned a hard lesson: "This
is Not America"
Struggled to cooperate with
labour unions, local laws
and regulations
Wal-Mart withdrew from the
country in 2006, abandoning
Germany's lucrative $370
billion retail market
In 1999 , Wal-Mart acquired

ASDA to enter UK
Its strategy included
EDLP Model and
extensive growth to
add new customers
Wal-Mart lobbied new
governments in UK as part
of its strategy
By 2016, Walmart's U.K. division, Asda, has
continued to lose market share in Britain as
it faces fierce competition from low-cost
competitors while the country's largest
supermarket Tesco gained
Africa
Wal-Mart helped suppliers
streamline operations
Wal-Mart entered
Africa in May 2011
by acquiring
Massmart Holdings
Wal-Mart faced rejections
from Labor Unions, and also
a point to note is that it
acquired only 51% of
Massmart
However, Wal-Mart had
learned its lessons from the
past
Wal-Mart adopted a low price
strategy in the under-developed
market
Massmart is the second-largest distributor of

consumer goods in Africa, the leading
retailer of general merchandise, liquor and
home improvement equipment and supplies,
and the leading wholesaler of basic foods
Wal-Marts initiatives in Africa are wide
ranging and extend from integrating small
holder farmers into the supply chain,
rationalizing private label product packaging
and improving store energy efficiency to
championing black economic empowerment
and increasing employee access to
affordable private healthcare benefits
Acquisitions over Greenfield

In past, Wal-Mart has shown higher success through
acquisitions
Related acquisitions are known to help company
enter through increased market power and avoid
certain barriers of entry
Acquisitions help in increased diversification and
speed of market
Greenfield investments are likely to cost more and
competition can be difficult to overcome.
In Greenfield, the entry process may take years; however in
acquisitions, you instantly acquire the target companys
technology, clients and vendors
Thank You

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Section 2 | Retail Management | PGP 2015

In 1991, through a joint venture with

In 1970, Walmart became a

In 2002, Walmart entered the

The Walton family is worth $152 billion, about as

Focus on convenience and operational

By the year 2013, Walmart

Cheap labour created lower

Walmart controlled more

Mishaps included creating

Partnered w/ local trucking company

Carried wide arrange of

In 2013, Walmart launched

Wal-Mart had 12,096

By 2012, Wal-Mart held

Wal-Mart entered the

Wal-Mart faced Stiff

As of June 2015, Wal-Mart

In 1999 , Wal-Mart acquired

Massmart is the second-largest distributor of

Acquisitions over Greenfield

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