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The Development of Walmart Inc. The Largest International Discount Department Stores

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Words: 900 |

Pages: 2|

5 min read

Published: Mar 19, 2020

Words: 900|Pages: 2|5 min read

Published: Mar 19, 2020

Table of contents

  1. Discounted Goods
  2. Online Grocery Delivery/Pickup
    Revenues
    Revenue Conclusions
    Net Income
    Net Income Conclusions
    Changes to The Company (Walmart)
    Current Events
  3. References:

Walmart Inc. is one of the largest international discount department stores. Walmart offers affordable products to its consumers in a cost-effective and convenient manner. Based out of Bentonville, Arkansas, US (Walmart, 2018), the mega-corporation operates internationally with over 11,700 stores in 28 countries (Walmart, 2018). The majority of its business, however, is conducted within The United States, wherein 76% of its revenues were generated this past fiscal year (Walmart, 2018). Target, Costco, and Amazon are Walmart’s main competitors within the retail industry (Walmart, 2018).

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Founded in 1962 by Sam Walters (Walmart, 2018), the major shareholders of Walmart now include his three children Jim Walton, Alice Walton, and S. Robson Walton. Walmart Inc. has now grown to a multi-billion-dollar department store and is expanding its business into the online grocery delivery market by doubling the number of stores with access to the service (Walmart, 2018). During this fiscal year, they have also expanded their eCommerce site to Canada and Mexico (Walmart, 2018), providing new customers access to their convenient shopping tool.

Discounted Goods

Walmart aims to provide its customers with quality goods at a low cost. The company’s main product line is the discounted goods from their department stores. These are quality goods that customers want, provided with the feature of a discounted price. This gives customers the benefit of reduced expenditure on necessities, allowing them to be more flexible with their budget.

Online Grocery Delivery/Pickup

Walmart has expanded its operations to make the customer experience more convenient by offering a new online grocery service. This service provides customers with a personal shopper, along with Walmart’s iconic saving feature and new 2-day free-delivery (Walmart, 2018). This new service provides customers with the benefit of saving time, and the convenience to buy groceries from home. The company continues to beat its competitors by offering countless discounts and benefits to its customers, such as price match and constantly updated deals.

Revenues

During the 2018 fiscal period, the company experienced their all-time highest revenue of $503 billion, which featured a 44% increase in sales generated by eCommerce (Walmart, 2018). This peak matches the general increase in revenue over the last 5 years, with the largest jump of $15 billion occurring in the 2018 fiscal period

Revenue Conclusions

Using the data provided in the annual report, it is clear that the increase in revenue resulted from increases in membership and net sales, and from the growth of their eCommerce website. A $1 billion increase in membership sales in 2017 and 2018. A $14 billion increase in net sales for the 2018 fiscal year, which accounts for the large jump in total revenues. Furthermore, the recorded 44% increase in eCommerce revenue (Walmart, 2018) resulted from doubling the number of products on Walmart.com (Walmart, 2018). The increase in membership and eCommerce sales correlates with Walmart’s effort into expanding their online retail operations.

Net Income

Walmart’s net income has increased over the last 2 years (Walmart, 2018), after a decrease in net income over the 2014-2016 period (Walmart, 2016).

Net Income Conclusions

It can be concluded that the decreased net income generated in the 2016 fiscal period is the result of a $2 billion drop in consolidated net income (Walmart, 2016). This drop could be attributed to an increase in costs and expenses incurred by Walmart, as well as a decrease in net sales for the period (Walmart, 2016). Furthermore, the growth of net income within the 2017 and 2018 periods reflects the recent expansions of Walmart Inc. operations. As the company grows into the market for online grocery services and expands its prominent eCommerce website, their products and services are becoming more accessible to consumers internationally, thus increasing revenues and net income.

Changes to The Company (Walmart)

Within the 2018 fiscal year, Walmart had made numerous changes to their company, including the decision to change its business name to Walmart Inc. (Walmart, 2018). Changes regarding operations include the introduction of 2-day free shipping, the expansion of eCommerce in Florida, one-hour grocery delivery in China, and the acquisition of the businesses ModCloth and Bonobos. Furthermore, Walmart Canada will purchase 30 more Tesla trucks in an effort to convert its entire fleet into vehicles powered by alternate energy by 2028 (Marowits R., 2018).

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Current Events

During the 2016 Alberta wildfire, a local Walmart was accused of stocking and selling contaminated food. This past week, a district loss prevention manager and Walmart Canada have been convicted and fined $20,000 each (Thurton D., 2018). The incident puts Walmart Inc. under a negative view by the public, potentially reducing the number of consumers who shop at their stores. Walmart Inc. has also recently publicized its interest in acquiring the online-store ELOQUII, a trendy women’s plus size clothing brand (Dunn A., 2018). By doing this, the company hopes to expand its own online-store and cater to new customers by providing a new line of products. Furthermore, it is clear that Walmart is hoping to keep up with their other online-store competitors, by increasing their variety of products.

References:

  1. Dunn, A. (2018, October 02). The Magic of ELOQUII. Retrieved October 02, 2018, from https://news.walmart.com/2018/10/02/the-magic-of-eloquii
  2. Marowits, R. (2018, September 06). Walmart Canada Orders 30 More Tesla Semi-Trucks, Aims to Shed Diesel. Retrieved October 01, 2018, from https://www.ctvnews.ca/business/walmart-canada-orders-30-more-tesla-semi-trucks-aims-to-shed-diesel-1.4081966
  3. Thurton, D. (2018, October 01). Walmart, Manager Fined $40,000 for Selling Contaminated Food After Fort McMurray Wildfire. Retrieved October 01, 2018, from https://www.cbc.ca/news/canada/edmonton/walmart-pleads-guilty-to-selling-contaminated-food-after-fort-mcmurray-wildfire-1.4845486
  4. Walmart Inc. (2016). 2016 Annual Report of Walmart Inc. Retrieved from https://s2.q4cdn.com/056532643/files/doc_financials/2016/annual/2016-Annual-Report-PDF.pdf
  5. Walmart Inc. (2018). 2018 Annual Report of Walmart Inc. Retrieved from http://s2.q4cdn.com/056532643/files/doc_financials/2018/annual/WMT-2018_Annual-Report.pdf
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The Development of Walmart Inc. the Largest International Discount Department Stores. (2020, March 16). GradesFixer. Retrieved March 29, 2024, from https://gradesfixer.com/free-essay-examples/the-development-of-walmart-inc-the-largest-international-discount-department-stores/
“The Development of Walmart Inc. the Largest International Discount Department Stores.” GradesFixer, 16 Mar. 2020, gradesfixer.com/free-essay-examples/the-development-of-walmart-inc-the-largest-international-discount-department-stores/
The Development of Walmart Inc. the Largest International Discount Department Stores. [online]. Available at: <https://gradesfixer.com/free-essay-examples/the-development-of-walmart-inc-the-largest-international-discount-department-stores/> [Accessed 29 Mar. 2024].
The Development of Walmart Inc. the Largest International Discount Department Stores [Internet]. GradesFixer. 2020 Mar 16 [cited 2024 Mar 29]. Available from: https://gradesfixer.com/free-essay-examples/the-development-of-walmart-inc-the-largest-international-discount-department-stores/
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