Did you know that the world’s biggest retailer started out as a humble small-town store less than 70 years ago? Here, we will explore the visionary leadership of Sam Walton, the founder of Walmart, and the strategies he employed to build an empire.
From learning from established retailers to overcoming challenges in the digital age, Walmart's journey is a testament to the power of innovation and perseverance.
What is Walmart and What Do They Do?
Walmart is a multinational retail corporation that operates a chain of discount department stores and warehouses.
They provide customers with a wide range of products at affordable prices, making everyday items accessible to millions of people worldwide.
Walmart's added value lies in its commitment to offering discounts, exceptional service, and value-driven offerings.
How Walmart Started
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Sam Walton, the visionary behind Walmart, drew inspiration from his experiences working at JCPenney and managing five & dime stores.
Recognizing the potential of low-margin prices, he applied his learnings and transformed small-town stores into thriving businesses.
Walton's emphasis on cost-effective operations and efficient supply chains laid the foundation for Walmart's future success.
"Most everything I've done, I've copied from somebody else".
-Sam Walton
Becoming the Biggest Retail Store in the World
Walmart's growth strategy included aggressive expansion, both domestically and internationally.
By opening stores in strategic locations and leveraging economies of scale, Walmart rapidly expanded its footprint across the United States.
Additionally, innovative practices such as the use of technology, efficient inventory management, and a focus on customer satisfaction propelled Walmart to become the largest retailer in the world.
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How Online Shopping Posed a Challenge
As the retail landscape evolved, online shopping emerged as a formidable challenge for traditional brick-and-mortar retailers. Walmart, a 40-year-old company, faced the task of adapting to the digital age.
In 2015, for the first time since 1970, Walmart suffered its first decline in sales, which led them to take online sales even more seriously and heavily invested in acquiring several eCommerce businesses including:
- Jet.com for $3 billion in 2016
- Bonobos for $310 million in 2017
- Eloquii for $100 million in 2018
- ModCloth for between $50 million to $75 million in 2017
In addition, Walmart utilized its existing infrastructure and extensive network to its advantage.
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