Walmart facts for kids
Logo since June 29, 2008
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Walmart location in Onalaska, Wisconsin
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Formerly
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| Public | |
| Traded as | |
| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=US9311421039 US9311421039] |
| Industry | Retail |
| Predecessor | Walton's Five and Dime |
| Founded |
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| Founders | Sam Walton, Bud Walton |
| Headquarters |
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U.S.
36°21′56″N 94°13′03″W / 36.36556°N 94.21750°W |
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Number of locations
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10,586 stores worldwide (October 31, 2022) |
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Area served
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Worldwide |
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Key people
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| Products | Food, drinks, groceries, clothing, footwear, beauty products, jewelry, accessories, furniture, decor, bedding, bath, electronics, appliances, housewares, toys, games, books, movies, musical instruments, pet supplies, baby products, hygiene products, health products, school and office supplies, tools, gifts, garden center, pharmacy, photo center, sporting goods, and auto center |
| Services |
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| Revenue |  US$611.3 billion (FY2023) |
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Operating income
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 US$20.4 billion (FY2023) |
| US$11.29 billion (FY2023) |
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| Total assets | US$243.45 billion (FY2023) |
| Total equity | US$83.754 billion (FY2023) |
| Owner | Walton family (50.85%) |
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Number of employees
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2,300,000 (Jan. 2022) |
| Divisions |
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| Subsidiaries | List of subsidiaries |
Walmart Inc. (pronounced WAWL-mart) is a huge American company. It runs many types of stores, including large hypermarkets (like supercenters), discount department stores, and grocery stores. Its main office is in Bentonville, Arkansas.
Brothers Sam and James "Bud" Walton started the company in 1962 in Rogers, Arkansas. It officially became a company in 1969. Walmart also owns and runs Sam's Club stores, which are like warehouses where you can buy things in bulk.
As of October 2022, Walmart has over 10,500 stores and clubs in 24 different countries. It uses 46 different names for its stores around the world. For example, it's called Walmart in the United States and Canada. In Mexico and Central America, it's known as Walmart de México y Centroamérica. In India, it operates as Flipkart Wholesale.
Walmart is the world's largest company by how much money it makes, according to the Fortune Global 500 list in 2022. In 2023, Walmart announced its total sales were $611.3 billion. It's also the largest private employer in the world, with 2.2 million employees. The Walton family still owns more than half of Walmart. In 2019, Walmart was the biggest grocery seller in the U.S.
Walmart joined the New York Stock Exchange in 1972. By 1988, it was the most profitable retail company in the U.S. It became the largest by sales in 1989. At first, Walmart stores were mostly in the South and Midwest. But by the early 1990s, they had stores all over the country.
Walmart's efforts outside the U.S. have had mixed results. Stores in Canada, the United Kingdom (ASDA), Central America, South America, and China have done well. However, its stores didn't succeed in Germany, Japan, South Korea, Brazil, and Argentina.
Contents
Walmart's Journey: A Look at Its History
Early Days: 1945-1969
In 1945, Sam Walton, who used to work at J. C. Penney, bought a Ben Franklin store. His main goal was to sell products at very low prices. He wanted to sell many items with a small profit on each, calling it a "crusade for the consumer."
Even though his rent and store purchase were expensive, he found cheaper suppliers. This allowed him to sell items for less than his rivals. In his first year, sales grew by 45 percent to $105,000. Within five years, the store made $250,000 in sales. When his lease ended, he opened a new store called "Walton's Five and Dime" in Bentonville. This store is now The Walmart Museum.
On July 2, 1962, Walton opened the first Wal-Mart Discount City store in Rogers, Arkansas. He got the idea from other discount stores he visited. He liked the name "Wal-Mart" because it sounded like "FedMart," another discount chain. The original building is now a hardware store. Walmart's "Store #1" is now a much larger Supercenter nearby. Within five years, the company grew to 18 stores in Arkansas and made $9 million in sales. In 1968, it opened its first stores outside Arkansas in Sikeston, Missouri and Claremore, Oklahoma.
Growing Big: 1969-1990
The company officially became Wal-Mart, Inc. on October 31, 1969. It changed its name to Wal-Mart Stores, Inc. in 1970. That same year, it opened its main office and first distribution center in Bentonville, Arkansas. It had 38 stores, 1,500 employees, and $44.2 million in sales.
Walmart started selling shares to the public on October 1, 1970. It was soon listed on the New York Stock Exchange. By 1975, Walmart had 125 stores, 7,500 employees, and sales of $340.3 million. It was operating in Arkansas, Kansas, Louisiana, Missouri, Oklahoma, Tennessee, Kentucky, Mississippi, and Texas.
In the 1980s, Walmart tried out a new store idea called Hyper-Mart. These stores combined discount items, groceries, pharmacies, and other services. Walmart grew quickly. By its 25th anniversary in 1987, there were 1,198 Wal-Mart stores with sales of $15.9 billion and 200,000 employees. Walmart's success was partly due to building new distribution centers near its stores.
In 1987, the company finished its satellite network. This $24 million investment connected all stores to the Bentonville office. It was the largest private satellite network at the time. It helped Walmart track sales and communicate with stores instantly. In 1988, David Glass took over as CEO, but Sam Walton remained chairman. The first Wal-Mart Supercenter opened in Washington, MO that year. By 1998, Walmart was selling more toys than Toys "R" Us.
Becoming a Global Company: 1990-2005
By the late 1980s, Walmart was the third-largest retailer in the U.S. but made more profit than its rivals, Kmart and Sears. By 1990, it became the largest U.S. retailer by sales.
Before 1990, Walmart had no stores on the West Coast or in the Northeast. But in July and October 1990, it opened its first stores in California and Pennsylvania. By the mid-1990s, it was the most powerful retailer in the U.S. It expanded into Mexico in 1991 and Canada in 1994. Vermont was the last U.S. state to get a Walmart store in 1995.
The company also opened stores outside North America. It entered South America in 1995 with stores in Argentina and Brazil. In July 1999, it entered Europe by buying Asda in the United Kingdom for $10 billion. In 1997, Wal-Mart was added to the Dow Jones Industrial Average, a list of important U.S. companies.
In 1998, Walmart started a new store idea called Neighborhood Market. By 2005, Walmart controlled about 20 percent of the retail grocery business. In 2000, H. Lee Scott became Walmart's CEO. Sales grew to $165 billion. In 2002, it was named America's largest company on the Fortune 500 list. It has stayed near the top of this list almost every year.
By 2005, Walmart had $312.4 billion in sales. It had over 6,200 stores worldwide, employing more than 1.6 million people. Walmart's U.S. presence grew so fast that most people lived within 60 miles of a store.
As Walmart became a huge company, some people worried about its effect on local communities. Studies showed that some small towns could lose almost half of their retail business after a Walmart opened. However, other studies found that small shop owners who adapted to the changes could still do well.
After Hurricane Katrina in 2005, Walmart used its strong delivery network to help quickly. It donated $20 million, 1,500 truckloads of supplies, and food for 100,000 meals. It also promised jobs to all its employees who were affected. Many praised Walmart for its fast help.
New Ideas and Changes: 2005-2010
Protecting the Environment
In November 2005, Walmart announced plans to become more environmentally friendly. Its goals included making its truck fleet more fuel-efficient and reducing greenhouse gas emissions. It also aimed to use less energy in stores and cut down on waste. CEO Lee Scott said Walmart wanted to be a "good steward of the environment." The company even designed experimental stores with wind turbines and solar panels. Walmart also became the biggest seller of organic milk and buyer of organic cotton.
New Look and Slogan
In 2006, Walmart started to redesign its U.S. stores to attract more shoppers. It opened a new store in Plano, Texas, with high-end electronics, jewelry, and a sushi bar.
On September 12, 2007, Walmart launched a new advertising slogan: "Save money. Live better.". This replaced its old slogan, "Always Low Prices, Always." Studies showed that Walmart's low prices saved customers billions of dollars each year.
On June 30, 2008, Walmart changed its logo. It removed the hyphen from "Wal-Mart" and added a "Spark" symbol. The stores became known as "Walmart." The new logo appeared on its website in July 2008 and in U.S. stores in late 2008.
Employee Benefits and Acquisitions
On March 20, 2009, Walmart announced it was paying over $933 million in bonuses to its hourly workers. This was on top of other benefits like profit sharing and discounts. Even during a recession, Walmart had strong sales of $401.2 billion for the year ending January 31, 2009.
On February 22, 2010, Walmart bought the video streaming company Vudu, Inc. for about $100 million.
Recent Growth: 2011-Present
Walmart's trucks travel millions of miles each year. The company aimed to make its truck fleet twice as efficient between 2005 and 2015. Some trucks at Walmart's Arizona center were changed to run on biofuel made from cooking grease from Walmart stores.
In November 2012, Walmart started a mail subscription service called Goodies. Customers paid $7 a month for food samples. This service closed in late 2013.
In June 2014, some Walmart employees went on strike in U.S. cities, asking for higher wages.
By 2015, Walmart was the largest U.S. company using solar power. It had solar panels on many rooftops and over parking lots.
On January 15, 2016, Walmart announced it would close 269 stores worldwide, affecting 16,000 workers. Most of these were in the U.S. and were close to other Walmart stores. Walmart wanted to focus on its larger Supercenters, Neighborhood Markets, and online business.
In August 2016, Walmart bought the e-commerce website Jet.com for $3.3 billion. Jet.com's co-founder, Marc Lore, stayed to run Walmart's U.S. online operations. In October 2016, Walmart partnered with IBM and Tsinghua University to track pork in China using blockchain technology. This helps Walmart save money and increase profits.
Walmart continued to buy other companies to grow its online presence. In February 2017, it bought Moosejaw, an online outdoor retailer. In June 2017, it bought Bonobos, a men's clothing company. In September 2017, it bought Parcel, a delivery company in Brooklyn. In 2018, Walmart started "Spark," a service that uses private drivers to deliver items to customers.
On December 6, 2017, Walmart announced it would change its corporate name to Walmart Inc. from Wal-Mart Stores, Inc., starting February 1, 2018.
In January 2018, Walmart announced it would close 63 Sam's Club stores. Some of these stores became e-commerce distribution centers. On the same day, Walmart said it would raise starting wages for workers and give bonuses due to a new tax law.
In May 2019, Walmart launched free one-day shipping on over 220,000 items with a minimum purchase. In September 2019, Walmart stopped selling all e-cigarettes due to "regulatory complexity." It also opened its first Health Center, offering low-cost medical services.
The coronavirus pandemic in 2020 caused many changes for Walmart. Stores adjusted hours for cleaning and stocking. Walmart offered unpaid leave for employees who felt unsafe working. Employees who got the virus received up to two weeks of pay. By July 2020, Walmart paid $428 million in bonuses to its staff. In July 2020, Walmart required all customers to wear masks in stores.
In early 2020, people shopped less often but bought more items. Walmart's sales increased by 10.5%, and online sales rose by 74%. In December 2020, Walmart launched a new service called Carrier Pickup for easy returns.
In January 2021, Walmart announced a new financial technology (fintech) company with Ribbit Capital. This company will offer financial products to customers and employees. In February 2021, Walmart bought technology from Thunder Industries to create digital ads. In May 2021, Walmart bought Zeekit, an Israeli company that uses artificial intelligence to let customers try on clothes virtually.
In August 2021, Walmart opened its Spark delivery service to other businesses. In August 2022, Walmart partnered with Paramount to offer Paramount+ content to its Walmart+ members. Also in August 2022, Walmart announced that most stores would no longer be open 24 hours.
In January 2023, Walmart raised its minimum wage for U.S. hourly workers from $12 to $14 an hour. This raise affected about 340,000 employees. The company also added more college degrees to its Live Better U program. In February 2023, Walmart reported $611.3 billion in sales for the previous financial year.
In April 2023, Walmart announced plans to add electric vehicle charging stations at thousands of stores by 2030. In January 2024, Walmart said it would open over 150 new stores in the U.S. over the next five years. It also plans to remodel 650 existing stores. In February 2024, Walmart announced that managers would receive stock grants of up to $20,000. It also announced a 3-for-1 stock split to make it easier for employees to buy company stock.
How Walmart Stores Are Organized
As of 2016, Walmart has four main parts: Walmart U.S., Walmart International, Sam's Club, and Global eCommerce. In the United States, Walmart has four types of stores: discount stores, Supercenters, Neighborhood Markets, and Sam's Club. Walmart International stores have even more types, like supermarkets and electronics stores. Kathryn McLay is the head of Walmart International.
Walmart U.S. Stores
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Walmart in Fajardo, Puerto Rico
Walmart U.S. is the biggest part of the company. It made $331.666 billion in sales in 2019, which was 65 percent of all Walmart sales. It includes Supercenters, Discount Stores, and Neighborhood Markets. Discount stores mainly sell non-grocery items. Supercenters also sell groceries. As of October 2022, there are 4,720 Walmart U.S. stores. About 90 percent of people in the United States live within 10 miles of a Walmart store. John Furner is the president and CEO of Walmart U.S.
Walmart Supercenter Stores
Walmart Supercenters are very large stores, usually around 178,000 square feet. They sell general items and a full range of groceries, like meat, baked goods, and fresh seafood. Many Supercenters also have a garden center, pet shop, pharmacy, tire and oil change service, and optical center. They often have small shops inside, like phone stores or hair salons.
Many Walmart Supercenters have McDonald's or Subway restaurants inside. Some Canadian stores have Tim Hortons. Some U.S. stores have Burger King, Wendy's, or Taco Bell. Some locations also have gas stations.
The first Supercenter opened in Washington, Missouri, in 1988. As of October 2022, there were 3,572 Walmart Supercenters in 49 U.S. states, Washington D.C., and Puerto Rico. Hawaii is the only state without a Supercenter. The largest Supercenter in the world is in Albany, New York, covering 260,000 square feet over two floors.
A typical Supercenter sells about 120,000 different items. The "Supercenter" name is no longer used in the U.S.; these stores are now just called "Walmart."
Walmart Discount Stores
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Walmart Discount Stores are also called "Walmart." They are discount department stores, usually around 105,000 square feet. They sell general items and some groceries. Many of these stores also have a garden center, pharmacy, and other services. Discount Stores were Walmart's first type of store.
At its busiest in 1996, there were 1,995 Walmart Discount Stores. By October 2022, that number had dropped to 365.
Walmart Neighborhood Market Stores
Walmart Neighborhood Market stores are smaller supermarkets, usually around 42,000 square feet. They are about one-fifth the size of a Supercenter. The first Neighborhood Market opened in 1998, but Walmart started focusing on these smaller grocery stores more in the 2010s.
These stores focus on groceries, pharmacy, and sometimes fuel. They sell fresh produce, bakery items, prepared foods, and cleaning supplies. Some stores offer wine and beer. Customers can also pick up online orders at these stores.
Prices at Neighborhood Market stores are the same as at larger Walmart Supercenters. An expert from Moody's Investors Service said this pricing gives Walmart an advantage over other grocery stores like Whole Foods Market and Trader Joe's.
As of October 2022, there were 682 Walmart Neighborhood Markets. Each store employs about 90 to 95 full-time and part-time workers.
Past Store Ideas
Walmart tried opening Supermercado de Walmart stores to serve Hispanic communities. The first one opened in Houston in 2009. Both locations closed in 2014.
Walmart Express stores were smaller discount stores. They offered groceries, check cashing, and gas. These stores were meant for small towns or big cities where space was limited. By 2014, all 22 Express stores were rebranded as Neighborhood Markets. In 2016, Walmart closed 102 of these smaller stores.
Between 2002 and 2022, Walmart owned the Amigo supermarkets in Puerto Rico. In 2022, Walmart sold its Amigo stores to focus on its larger Supercenter and Sam's Club stores there.
Special Programs and Services
In September 2006, Walmart started a program to sell generic drugs for $4 per prescription. This program expanded to all Florida stores by January 2007. Walmart says it can offer these low prices because of its efficient mass distribution. Many of these low-cost generic drugs come from India.
In 2015, Walmart began testing a free grocery pickup service. Customers order online and choose a pickup time. A Walmart employee then loads the groceries into the customer's car. As of December 2017, this service was available in 39 U.S. states.
In May 2016, Walmart changed its ShippingPass service to offer two-day delivery, like Amazon. Walmart priced it at $49 per year, compared to Amazon Prime's $99.
In June 2016, Walmart and Sam's Club started testing a grocery delivery service using companies like Uber and Lyft. Customers could order groceries online and have them delivered for a small fee. By March 2018, Walmart expanded online delivery to 100 U.S. cities.
In October 2019, Walmart announced that customers in 2,000 stores could use the grocery pickup service for alcoholic drinks. Walmart also delivers alcoholic drinks from nearly 200 stores in California and Florida.
In February 2020, Walmart announced a new membership program called "Walmart +."
Walmart Around the World
As of October 2022, Walmart's international business included 5,266 stores and 800,000 workers in 23 countries outside the United States. Walmart owns all its operations in Argentina, Brazil, Canada, and the UK. Walmart is the largest private employer in the U.S. and Mexico. In 2019, international sales were $120.824 billion, or 23.7 percent of total sales.
Central America
Walmart owns 51 percent of a company called Central American Retail Holding Company (CARHCO). As of October 2022, this company has 868 stores in five countries:
- 263 stores in Guatemala
- 102 stores in El Salvador
- 111 stores in Honduras
- 102 stores in Nicaragua
- 290 stores in Costa Rica
Chile
In January 2009, Walmart bought most of the largest grocery chain in Chile, Distribución y Servicio D&S SA. In 2010, it was renamed Walmart Chile. As of October 2022, Walmart Chile runs about 384 stores.
Mexico
Walmart opened its first international store in Mexico in 1991. As of October 2022, Walmart's Mexico division is the largest outside the U.S., with 2,804 stores. Walmart in Mexico runs stores like Walmart Supercenter, Sam's Club, and Bodega Aurrera.
Canada
Walmart has been in Canada since 1994, when it bought 122 Woolco stores. As of October 2022, it has 402 stores (including 343 Supercentres and 59 discount stores). In 2015, it employed 89,358 people. Walmart Canada's first Supercentres opened in November 2006 in Ontario.
Africa
On September 28, 2010, Walmart announced it would buy Massmart Holdings Ltd. in Johannesburg, South Africa. This $4 billion deal gave Walmart its first presence in Africa. As of October 2022, it has 411 stores in South Africa and other African countries like Botswana, Ghana, and Kenya.
China
Walmart has partnerships and owns many stores in China. As of October 2022, Walmart China runs 369 stores, including Walmart Supercenter and Sam's Club.
In February 2012, Walmart increased its ownership in the Chinese online supermarket Yihaodian. Walmart took full ownership in July 2015.
India
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In November 2006, Walmart announced a partnership with Bharti Enterprises to operate in India. Walmart runs stores in India under the name Best Price Modern Wholesale. The first store opened in Amritsar in May 2009.
On May 9, 2018, Walmart announced it would buy a 77% share in the Indian e-commerce company Flipkart for $16 billion. This deal was completed on August 18, 2018. As of October 2022, there are 28 Best Price Modern Wholesale locations.
Challenges in Other Countries
In the 1990s, Walmart tried to enter the German and Indonesian retail markets.
Walmart entered Indonesia through a partnership but both stores closed due to the 1997 Asian financial crisis.
In 1997, Walmart bought the Wertkauf supermarket chain in Germany. The German market was very competitive, and Walmart's low-price strategy didn't give it an advantage. Walmart's company culture was also not well-received by employees and customers. In July 2006, Walmart left Germany due to ongoing losses.
In 2004, Walmart bought 118 stores in the Bompreço supermarket chain in Brazil. By 2010, Walmart was the third-largest supermarket chain in Brazil. Since August 2018, Walmart Inc. only owns a small part of Walmart Brazil, which was renamed Grupo Big in 2019.
Walmart Argentina started in 1995. On November 6, 2020, Walmart sold its Argentine operations to Grupo de Narváez.
Walmart's UK company, Asda, is based in Leeds. Asda is mainly a grocery chain but also sells many non-food items. In July 2015, Asda updated its logo to include the Walmart "Spark" symbol. In October 2020, Walmart announced it would sell most of its share in Asda to a group of buyers.
In Japan, Walmart owned 100 percent of Seiyu. On November 16, 2020, Walmart announced it would sell 65% of its shares in Seiyu.
Sam's Club Stores
Sam's Club is a chain of warehouse clubs. They sell groceries and general items, often in large quantities. Stores are usually around 134,000 square feet. The first Sam's Club opened in 1983 in Midwest City, Oklahoma. It was named after Walmart's founder, Sam Walton. As of October 31, 2022, Sam's Club had 600 stores. It made 11.3% of Walmart's revenue in 2019. Christopher Nicholas is the president and CEO of Sam's Club.
Global Online Shopping
Walmart's Global eCommerce division is based in San Bruno, California. It handles online shopping for Walmart, Sam's Club, Asda, and other international brands. It has offices in the U.S., China, the UK, and India.
Walmart's Own Brands
About 40 percent of products sold at Walmart are "private labels." These are brands made just for Walmart by other manufacturers. Walmart started offering its own brands in 1991 with Sam's Choice drinks. Sam's Choice quickly became very popular. Other Walmart brands include Great Value and Equate.
How Walmart is Run
Walmart's main office is in Bentonville, Arkansas. The company's business idea is to sell a wide range of items at low prices. Doug McMillon became Walmart's CEO on February 1, 2014. He used to lead Sam's Club and Walmart International. Walmart calls its employees "associates."
All Walmart stores in the U.S. and Canada have "greeters" at the entrance. This idea was started by Sam Walton. Greeters help shoppers find what they need and answer questions.
For many years, employees wore blue vests. This changed in 2007 to khaki pants and polo shirts. In 2014, the vest came back. It's navy blue for Supercenter employees, lime green for Neighborhood Market employees, and yellow for self-checkout and customer service staff. The vests say "Proud Walmart Associate."
Unlike many other stores, Walmart does not charge suppliers a fee to place their products in the store. Instead, it focuses on selling popular products.
Walmart started its Site-To-Store program in 2007. This allows customers to buy items online and have them shipped for free to the nearest store for pickup.
On September 15, 2017, Walmart announced it would build a new main office in Bentonville. This new building will replace its old one and bring together operations from 20 different buildings.
Walmart's Leaders
Walmart is run by an eleven-member board of directors. These directors are chosen by the company's owners each year. Gregory B. Penner, Sam Walton's grandson-in-law, is the chairman of the board. Doug McMillon is the president and CEO.
Some important people who have been on the board include Hillary Clinton (from 1985–1992).
After Sam Walton passed away in 1992, Don Soderquist, who was a top manager, became known as the "Keeper of the Culture."
Who Owns Walmart
Walmart Inc. is a company registered in Delaware. As of March 2017, it had over 3.2 billion shares. Most of these shares are owned by the Walton family. Large investment groups and funds also own parts of the company.
Who Walmart Competes With
In North America, Walmart competes with grocery stores and department stores like Target and Kroger. In Canada, it competes with Loblaw and Sobeys. In Mexico, it competes with Comercial Mexicana. Sam's Club competes with Costco and BJ's Wholesale Club.
Studies often show that Walmart's prices are much lower than its competitors. Walmart's presence can lead to lower food prices for families. When Walmart Supercenters open, other supermarkets might see their profits go down.
While some believe Walmart harms small businesses, research suggests it has little effect on "Mom and Pop" stores. Small stores might struggle if they sell the exact same products as Walmart or try to sell at lower prices. A better approach for small stores is to offer different products or specialize in certain areas.
Walmart has also faced tough competition in other countries. In Germany, it only had 2 percent of the food market. In May 2006, Walmart sold all its stores in South Korea because it struggled to compete there.
Walmart learned that it needs to adapt to local cultures to succeed in other countries. For example, in China, Walmart found that customers preferred to pick their own live fish. So, stores started displaying fish uncovered and added fish tanks, which led to higher sales.
Walmart Customers
In the U.S., Walmart first grew in the Southeast and Midwest. Now, it has expanded across the country. Walmart customers are very loyal and say low prices are the main reason they shop there. Walmart describes its shoppers in three groups: those who need low prices, those with lower incomes who buy well-known brands, and wealthier shoppers looking for deals. As of 2022, the average U.S. Walmart customer earned about $80,000 per year. When prices go up, more upper-income shoppers also look for bargains at Walmart.
Walmart has also tried to appeal to more diverse customers. In 2006, it changed its strategy to fit different groups, like African-Americans, Hispanic people, and suburban residents.
Guns and Ammunition Sales
Walmart stopped selling handguns in all U.S. states except Alaska in 1993.
In 2018, Walmart stopped selling guns and ammunition to people under 21. It also stopped selling military-style rifles often used in mass shootings.
As of 2019, Walmart was a major seller of firearms and ammunition. In 2019, Walmart announced it would stop selling all handgun ammunition and certain rifle ammunition. It also stopped selling handguns in Alaska. Walmart also asked customers not to openly carry weapons in its stores, unless they were law enforcement officers.
In October 2020, Walmart temporarily removed gun and ammunition displays from sales floors in thousands of U.S. stores. This was done as a safety measure due to concerns about civil unrest.
Technology at Walmart
Open Source Software
Many of Walmart's technology projects are open source. This means their code is available for others to use and improve. These projects can be found on Walmart Labs' GitHub page. For example, the Electrode project was created to power Walmart's online shopping platform.
Using Big Data
As the largest retailer in the U.S., Walmart collects a lot of customer information. This "big data" is used to predict what customers will buy. This helps the company run its stores better. Walmart's data center is sometimes called Area 71.
In April 2011, Walmart bought Kosmix to help analyze real-time data. In August 2012, Walmart launched its Polaris search engine.
Walmart's Charity Work
Sam Walton believed Walmart helped society by offering low prices, which lowered the cost of living for customers. He felt the company itself was a "powerful force for good." He didn't want the company to focus on giving cash to charity.
However, after Sam Walton passed away in 1992, Walmart and the Walmart Foundation greatly increased their charitable giving. For example, in 2005, Walmart donated $20 million in cash and supplies for Hurricane Katrina relief. In 2020, they gave $25 million to groups helping with the COVID-19 pandemic. Today, Walmart donates almost $1 billion each year.
COVID-19 Efforts
As of January 2021, Walmart helped healthcare workers get vaccines in New Mexico and Arkansas. Walmart planned to offer vaccines in many other states and Puerto Rico. They aimed to deliver between 10 million and 13 million doses per month.
In May 2021, Walmart announced that fully vaccinated employees could stop wearing masks at work. This followed guidance from the U.S. Centers for Disease Control and Prevention.
Walmart's Impact on the Economy
Effects on Customers
A 2005 report said that Walmart's low food prices save American shoppers at least $50 billion each year. A study in 2005 found that the poorest people benefit the most from discount stores like Walmart. In 2006, a columnist said Walmart saves shoppers over $200 billion a year.
Effects on Other Stores
A study in 1997 found that some small towns can lose almost half of their retail business within ten years of a Walmart opening. This happens as people choose to shop in towns with Walmart stores. However, the study also said that small shop owners who adapt can still do well.
More recent studies show that Walmart Supercenters can cause sales to drop at other large stores nearby. While Walmart is often blamed for closing small businesses, research suggests it has little effect on "Mom and Pop" stores. A 2008 study said Walmart had no long-term impact on the overall size of small businesses in the U.S.
The impact depends on what goods are sold. Small stores that specialize in certain products can compete well against Walmart.
Effects on Jobs
A 2022 review found that Walmart usually causes a small increase in local retail jobs. For example, one study found a new store increased retail jobs by 100 in the short term.
Walmart tends to hire local employees for jobs that pay lower wages and offer fewer benefits. This can make employees rely more on public assistance programs. Studies on wages after Walmart arrives have mixed results. Some show lower wages, others no effect, and some even show an increase.
In broader terms, one group estimated that between 2001 and 2006, Walmart's trade with China led to a loss of nearly 200,000 U.S. jobs, mostly in manufacturing.
However, in 2014, Walmart pledged to buy $250 billion worth of American-made products over the next decade. By 2020, nearly two-thirds of Walmart's products were made or grown in the U.S. As of March 2021, Walmart promised to buy an additional $350 billion in American-made items.
Effects on How Efficient Businesses Are
A 2001 study found that Walmart directly and indirectly caused most of the improvement in how efficient general merchandise stores were between 1995 and 2000.
Walmart's use of technology, especially in managing its supply chain, is a big reason for its impact. For every dollar Walmart spent on its own technology, suppliers spent an estimated ten dollars on their systems. Walmart's new ideas have also been copied by its competitors, making the whole retail industry more efficient.
Walmart and Its Employees
Walmart has over 2.3 million employees worldwide. It has faced some issues regarding its workforce, including wages and working conditions. In November 2013, a labor board found that Walmart had pressured employees not to strike and had disciplined workers who did. Critics point to Walmart's high employee turnover as a sign of unhappy workers. About 70 percent of its employees leave within the first year.
Walmart is the largest private employer in the United States, with 1.6 million employees. It employs almost five times as many people as IBM. Walmart employs more African Americans than any other private employer in the U.S.
While some retail workers belong to unions, Walmart does not have unionized labor. It actively discourages employees from forming unions.
In March 2019, Walmart launched "Live Better U." This program helps employees get an education. It includes a $1-a-day college program, free high school education, and discounts on other college programs.
In April 2019, Walmart announced it would use more robots in stores. These robots will help with inventory, cleaning floors, and unloading trucks. This is part of the company's effort to lower labor costs.
In June 2019, Walmart expanded its education benefits to attract high school students. These benefits include flexible work schedules, free SAT and ACT prep courses, and a debt-free college degree in certain fields.
Gender and Employment
In 2007, a lawsuit claimed that Walmart discriminated against female employees in pay and promotions. The case was very large, covering 1.5 million past and current employees. In 2011, the U.S. Supreme Court ruled in Walmart's favor, saying the plaintiffs didn't have enough in common for a group lawsuit. However, some plaintiffs planned to file individual lawsuits. In 2020, Walmart agreed to pay $20 million and change its hiring tests to settle a sex-based hiring discrimination lawsuit.
According to a consultant for the lawsuit, in 2001, female employees made up 65 percent of Walmart's hourly workforce but only 33 percent of its management. Walmart said these comparisons were unfair because it classifies employees differently.
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