Overview In 1962, Sam Walton opened his first Wal-Mart store in Rogers, Arkansas, creating a low price approach to retail that soon became a model all of its stores would follow: "Sell brand merchandise at low prices.” Kmart and Target also started operations the same year. Sam Walton, founder of Wal-Mart, took advantage of the opportunity and established a discount retail company. In its beginning, the stores opened in small towns throughout the south, in areas where other large retailers did not even think to establish operations. Walton’s goal was to have an everyday low price discount store. Five years after opening business, Walton the need to expand before his competitors out ran him. During the 1970s, the retail industry became extremely competitive, and the economy became weak due to inflation. Sears was the leading retailer in the nation during the 1970s, however, the recession of 1974-1975 and inflation affected Sears negatively. While Sears targeted middle class families and expanded its overhead, Wal-Mart competed with its rivals and lowered overhead expenses.
Wal-Mart has grown at an alarming rate since their inception and has proven to be a retailer of the future. It is currently the largest retailer in the world. It has the highest gross profits of any company in the world as well as the highest net profits. Wal-Mart has also topped the Fortune 500 4 times. Wal-Mart is using the following Corporate strategies; broadening our appeal to all of our customers, becoming an even better place to work, improving business operations and efficiency, driving growth in our international business and making unique contributions to communities.
Issues:
While Wal-Mart has been very successful at establishing a global presence in several countries with over 1,587 stores and 500,000 employees by 2005. The company proved to be doing