SAEDNEWS: Walmart is one of the most successful companies in the world and undoubtedly one of the most famous and profitable retailers in history. In this article, we explore the story of the Walmart brand and the retail stores that employ more people than any other company across the globe. Join us as we dive into its fascinating journey.
According to SaedNews’ Success World service, Walmart is the largest retailer in the world, operating over 11,000 stores globally. The company is also recognized as the highest-earning company worldwide. Walmart is an American retail corporation founded in 1962 by Sam Walton. It operates the largest network of discount department stores, hypermarkets, and grocery stores. With more than 11,000 branches across 28 countries, Walmart is considered the largest company in the world by revenue. It is a family-run business, with the Walton family holding the majority of its shares. Walmart employs approximately 2.3 million people worldwide, making it the largest employer globally. The company went public on the New York Stock Exchange in 1972 and was recognized as the most profitable retailer in the U.S. by 1988.
In 1945, Sam Walton, a former J.C. Penney employee and entrepreneur, leased a Ben Franklin store from the Butler brothers. His goal was to sell more products at lower prices. Early in his career, Walton faced numerous setbacks due to high rental and supply costs. However, he found alternative suppliers offering lower prices, reduced product margins, and ultimately increased overall sales by 45%. Sales continued to grow steadily over the next five years. When his lease ended, he could not reach an agreement to renew it, so he opened a new store named Walton's Five and Dime, which today has been turned into the Walmart Museum.
On July 2, 1962, Walton opened the first Walmart discount store in Rogers, Arkansas. Within five years, Walmart expanded to 24 stores across Arkansas. In 1968, the first store outside Arkansas opened in Oklahoma. Walmart was officially incorporated on October 31, 1969, and its first distribution center was opened in Arkansas in 1970, employing 1,500 staff across 38 stores. Walmart experienced rapid growth during the 1980s, and by its 25th anniversary in 1987, the company had 1,198 employees and $16 billion in revenue.
In 1987, Walmart completed the construction of its private satellite network, a $24 billion project that allowed the headquarters to transmit data, audio, and one-way video communications to all operational units. At the time, it was the largest private satellite network in the world, enabling headquarters to monitor inventory and sales at every store.
In 1988, Walton appointed David Glass as CEO while he remained chairman. Walmart’s rapid growth raised concerns about its impact on local communities. Kenneth Stone, an economics professor at Iowa State University, conducted studies showing that some small towns lost over half their retail revenue within ten years of a Walmart opening. Other research highlighted positive effects such as rail development, new shopping centers, and retail market growth. A separate study at the University of Mississippi found that Walmart’s presence had both positive and negative effects on local businesses.
In September 2005, after Hurricane Katrina, Walmart provided $20 million in cash, 1,500 trucks of goods, 100,000 meals, and promised employment to displaced workers. Independent research by Steven Horwitz showed that Walmart leveraged its local supply chain knowledge to deliver aid faster than FEMA. While the company was widely praised, some criticisms regarding labor practices persisted.
In 2005, Walmart announced sustainability initiatives aimed at increasing energy efficiency, including a $500 million annual investment to improve truck fuel efficiency. A three-year plan aimed to reduce greenhouse gas emissions by 25%, energy use by 30%, and solid waste by 25%. CEO Lee Scott emphasized Walmart’s goal to eventually rely solely on renewable energy and achieve zero waste. Pilot stores incorporated wind turbines, solar panels, biofuel steam boilers, chilled-water refrigerators, and irrigation-free gardens. These initiatives also made Walmart the world’s largest buyer of cotton and natural milk while reducing packaging and energy costs. The company recently built its own power plant in Texas to supply affordable electricity to stores, expecting to save $15 million annually.
Samuel Moore Walton was born on March 29, 1918, in Kingfisher, Oklahoma, to farming parents. The family moved to Missouri in 1923. Walton started working at a young age, milking cows, delivering newspapers, and selling magazine subscriptions. He attended the University of Missouri as an ROTC student, earning a degree in economics in 1940.
Walton married Helen Robson in 1943 and had four children. He briefly worked at J.C. Penney before serving in World War II as a security supervisor for aviation plants and military camps. In 1945, Walton opened his first store at age 26 by leasing a Ben Franklin franchise with $20,000 borrowed from his father-in-law and $5,000 of his own savings. His innovative practices, including fully stocked shelves, helped drive sales. After a series of negotiations, Walton opened Walton’s Five and Dime in Bentonville on May 9, 1950. Revenue grew from $72,000 to $175,000 within three years.
The first official Walmart store opened in 1962. Walton promoted American-made products at lower prices to compete effectively. He passed away from leukemia on April 5, 1992, leaving the company to his family, with two sons, Rob and John Walton, playing key management roles. The Walton family remained among America’s five wealthiest families until 2005, dedicating a portion of their wealth to charitable causes.
Walmart Express Failures: Launched in 2011, Walmart Express stores were smaller (1,000–1,400 m²) than traditional stores (16,000 m²). Despite expectations of high profit, all 102 branches closed due to limited food offerings and poor brand positioning.
International Failures: Walmart faced significant obstacles in India, Russia, Germany, and South Korea. Regulatory barriers, cultural differences, and consumer preferences hindered expansion, demonstrating that even the world’s largest retailer cannot succeed everywhere.
Commit to Your Business – Believe in your work more than anyone else.
Share Profits with Colleagues – Treat employees as partners.
Motivate Your Team – Set ambitious goals and encourage healthy competition.
Build Strong Relationships – Keep employees informed for better engagement.
Appreciate Employees – Express sincere gratitude to boost morale.
Celebrate Successes – Enjoy your achievements.
Listen to Employees – Gather ideas and feedback regularly.
Exceed Customer Expectations – Deliver slightly more than customers ask for and apologize for mistakes.
Manage Costs Better than Competitors – Effective cost management drives competitive advantage.
Go Against the Flow – Challenge conventional methods to gain an edge.
Walmart started with the motto “more sales, less profit,” aiming to help people live better through affordable products. Today, it is the world’s largest retailer, serving 260 million customers weekly across physical and online stores. Walmart sells electronics, films, home appliances, clothing, shoes, jewelry, toys, health and beauty products, sports equipment, pet supplies, automotive products, industrial goods, and groceries. The original Walton’s Five and Dime store is now a museum where visitors can explore the history of Walmart and the Walton family.
The Walton family, owning 48% of the company, remains the primary shareholder. As of January 31, 2017, Walmart operated 11,695 stores in 28 countries, using different brand names such as Asda in the UK and Seiyu Group in Japan. Analysts suggest that if Walmart were a country, it would rank as the 28th-largest economy in the world.
