Walmart Case Analysis
1. Company Overview
Income Statement Information
• Walmart’s Total Revenue January 31, 2014: 476,294,000
• Gross Profit January 31,2014: 118, 225,000
• Operating Income: 26,872,000
• Net Income: 16,022,000
• Net Income Applicable to Common Shares: 16,022,000
Walmart’s Growth Internationally
• Prior to 1990, Walmart focused its growth within the United States
• The Walmart International Division was created in 1993 as part of its expansion strategy
• By 2009, Walmart has expanded to over 15 countries outside the United States through new-store construction and acquisitions
• To name a few countries which Walmart operates; Argentina, Brazil, Canada, Child, China and Japan
• Overall, they serve over 200 million times per week to international clients
• Currently, Walmart’s grown within the United States borders is stalling. Thus, their strategy is to look for profits internationally.
• 8,000 retail units worldwide; 3,659 are outside the continental United States (46%)
• Employ 680,000 people outside the United States
• In 2005, Walmart acquired 545 new stores and 50,000 workers in Japan and South America.
• Walmart’s international division is responsible for 24.6% of Walmart’s sales.
• In 2009, Walmart’s international division showed an increase of sales from the 2008 by 9.1% ($98.6 billion).
• Walmart’s has had a hit-and-miss success rate internationally.
• Walmart’s Failure: Japan, United Kingdom, Germany, South Korea
Struggled in Japan to match consumer preferences and work successfully with suppliers.
Forced to withdraw from German and South Korean markets because they failed to generate profits.
• Walmart’s Success in Canada since 1994: through acquisition of 122 Woolco stores, 254 Walmart stores, 58 Supercenters, and strong partnerships with Canadian suppliers.
• Walmart’s Success in Mexico: 1,242 units include Sam’s Clubs, Bodegas, Walmart Supercenters, Superamas, Suburbias, VIP restaurants. Today Walmart is the largest
Income Statement Information
• Walmart’s Total Revenue January 31, 2014: 476,294,000
• Gross Profit January 31,2014: 118, 225,000
• Operating Income: 26,872,000
• Net Income: 16,022,000
• Net Income Applicable to Common Shares: 16,022,000
Walmart’s Growth Internationally
• Prior to 1990, Walmart focused its growth within the United States
• The Walmart International Division was created in 1993 as part of its expansion strategy
• By 2009, Walmart has expanded to over 15 countries outside the United States through new-store construction and acquisitions
• To name a few countries which Walmart operates; Argentina, Brazil, Canada, Child, China and Japan
• Overall, they serve over 200 million times per week to international clients
• Currently, Walmart’s grown within the United States borders is stalling. Thus, their strategy is to look for profits internationally.
• 8,000 retail units worldwide; 3,659 are outside the continental United States (46%)
• Employ 680,000 people outside the United States
• In 2005, Walmart acquired 545 new stores and 50,000 workers in Japan and South America.
• Walmart’s international division is responsible for 24.6% of Walmart’s sales.
• In 2009, Walmart’s international division showed an increase of sales from the 2008 by 9.1% ($98.6 billion).
• Walmart’s has had a hit-and-miss success rate internationally.
• Walmart’s Failure: Japan, United Kingdom, Germany, South Korea
Struggled in Japan to match consumer preferences and work successfully with suppliers.
Forced to withdraw from German and South Korean markets because they failed to generate profits.
• Walmart’s Success in Canada since 1994: through acquisition of 122 Woolco stores, 254 Walmart stores, 58 Supercenters, and strong partnerships with Canadian suppliers.
• Walmart’s Success in Mexico: 1,242 units include Sam’s Clubs, Bodegas, Walmart Supercenters, Superamas, Suburbias, VIP restaurants. Today Walmart is the largest