Wal-Mart International Essay example

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Wal-Mart International

Introduction

In 1993, Wal-Mart had become America’s leading retailer, with net sales of $67 billion from its Wal-Mart stores, Sam’s Clubs, and Wal-Mart Supercenters. The Company had grown at a rate of 25% per year since 1990, and it was clear that to continue at its current rate of growth, Wal-Mart would have to seriously consider continuing its recent international expansion.

During 1992, Wal-Mart had entered into a joint venture with CIFRA, Mexico’s largest retailer, which currently operated 24 stores in Mexico and had plans to open 70 new stores by 1995. The Company had also recently completed the acquisition of 122 Woolco department stores in Canada. Each of these expansions had presented unique
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This created an employee ownership that helped Walton to advance the Company’s emphasis on controlling costs and providing excellent customer service. Additionally, Wal-Mart established highly automated distribution centers and implemented a computerized inventory system, which allowed the Company to cut costs and speed up checkout.

In 1988, Sam Walton stepped down as CEO of Wal-Mart due to health reasons and David Glass assumed the management of the Company. Since then, Wal-Mart had acquired its own distribution division and had begun to expand internationally.

By 1993, Wal-Mart had five divisions: Wal-Mart Stores, Wal-Mart Supercenters, Sam’s Clubs, McLane Company, and Wal-Mart International.

1. Wal-Mart Stores represented the lion’s share of company sales and were the nation’s largest discount chain. They accounted for approximately 75% of the Company’s profit.
2. Wal-Mart Supercenters were the company’s fastest growing division and included Supercenters, Hypermarts, and Bud’s Warehouse. This segment provided the Company’s primary growth vehicle going forward, with units combining 110,000 square foot discount stores with 40,000 square foot grocery and 20,000 square foot strip mall merchandise.
3. Sam’s Clubs typically ran at 100,000 square feet and accounted for approximately 23% of total company sales and 14% of profits in 1993.
4. McLane Company was acquired by Wal-Mart in 1990 and comprised the world’s largest food and nonfood

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