Wal MartCom
Walmart is the largest retailer
in the world and the second largest corporation in the world, behind
Exxon Mobil, based on revenue as of 2006.
For the fiscal year ending January 31,
2006, Wal-Mart reported net income of $11.2 billion on $316 billion of
sales revenue (3.5% profit margin). It is the largest private employer
in the United States and Mexico.
Wal-Mart is the largest grocery retailer in the United States, with an
estimated 20% of the retail grocery and consumables business, and is
also the largest toy seller in the United States, with an estimated 22
percent of the retail toy business, having surpassed Toys "R" Us in the
late-1990s.
Products
they sell include
Clothing,
footwear,
bedding,
furniture,
jewelry,
beauty products,
electronics and
housewares. |
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Wal-Mart has been widely criticized for
its policies and business practices by community groups, grassroots
organizations, labor unions, religious organizations, and environmental
groups. Specific concerns include the corporation's extensive foreign
product sourcing, treatment of employees and product suppliers,
environmental practices, the use of public subsidies, and the impact of
stores on the local economies of towns in which they operate.
Wal-Mart's business model is based on
selling a wide variety of general merchandise and marketing
"always low prices." The company refers to its employees as,
"associates." All Wal-Mart stores in the United States and Canada also
have designated "people greeters," whose general role is to welcome
shoppers at the store entrance, as well as playing a role in loss
prevention and security.
Unlike many other retailers, Wal-Mart
does not charge a slotting fee to suppliers for their products to appear
on the store. Alternatively, they focus on selling more popular
products, and often pressure store managers to drop unpopular products
in favor of more popular ones, as well as manufacturers to supply more
popular products.
In the United States, Wal-Mart's chief
competitors in low-end general merchandise include Sears Holdings
Corporation's Kmart chain and Target. Many smaller
regional chains, such as Meijer in the midwest, are also competitors.
Wal-Mart's move into the grocery business has also positioned it against
major grocery chains such as HEB, Kroger, Albertsons, Publix, Giant
Eagle, Safeway, Winn-Dixie, Ahold and many other regional chains and
independents.
A niche has been carved out of
Wal-Mart's dominance in the United States by several retail
corporations. By focusing on a small number of low-cost products, dollar
store retailers such as Family Dollar and Dollar General have
successfully competed head-to-head with Wal-Mart for home consumer
sales. In 2004, Wal-Mart responded by testing their own dollar store
concept, a subsection of some stores known as "Pennies-n-Cents."
Wal-Mart has been the subject of
criticism from community groups, grassroots organizations, trade unions,
and environmental groups. Specific concerns include the company's
extensive foreign product sourcing, treatment of employees and product
suppliers, environmental carelessness, use of public subsidies, and
store impacts on local communities and businesses. Additionally,
Wal-Mart has faced accusations of illegal activities, including
predatory pricing, discrimination and violation of
labor laws. |