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Wal

Sam Walton opened the first Wal-Mart store in 1962 in Arkansas and pursued a strategy of low prices. By 1990, Wal-Mart became the largest retailer in the US. While Wal-Mart faced challenges increasing profits due to its size, it also had labor issues but has since implemented a $2.7 billion turn-around plan to improve working conditions.

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22 views1 page

Wal

Sam Walton opened the first Wal-Mart store in 1962 in Arkansas and pursued a strategy of low prices. By 1990, Wal-Mart became the largest retailer in the US. While Wal-Mart faced challenges increasing profits due to its size, it also had labor issues but has since implemented a $2.7 billion turn-around plan to improve working conditions.

Uploaded by

Brian Prince
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Wal-Mart Background Information

Sam Walton opened his first Wal-Mart in 1962 in Arkansas. Sam's low price strategy for retailers
became an important model for all their stores across the globe. In the beginning, Wal-Mart majored its
operation in rural areas to avoid confrontation with established retailers such as Kmart. As it grows, the
company introduced new retail models such as Sam’s Club discount stores and Wal-Mart Supercenter.
By 1990, Wal-Mart becomes the largest retailer in the US.

Due to the size of Wal-Mart, it can be challenging to increase its profits through a measurable
degree. Labor issues are not new to Wal-Mart as a measure of reducing costs. The company has been
fighting with staff and labor unions since 1970. For instance, Wal-Mart ran into financial issues such as
unpaid overtime leading to an unhappy workforce. However, Wal-Mart made a turn-around plan for
creating a conducive work environment. Today, the company guarantees about $10 every hour as well
as paid vacations and efficient promotion opportunities. So far, the company has implemented about
$2.7 billion turn-around initiative, but the hourly rate has been cut.

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