COMPANIES EXPLAINED

1. History and Founding

Walmart was founded by Sam Walton in Rogers, Arkansas, in 1962. Its mission was simple: offer lower prices to help people live better. With a strong focus on cost-cutting and logistics, Walmart grew rapidly throughout the U.S. in the 1970s and 1980s.

By the 1990s, Walmart had become the largest retailer in the U.S. and began its international expansion. Today, Walmart operates thousands of stores across the globe and is one of the world’s largest companies by revenue.

2. Sector and Industry

Walmart operates in the retail sector, particularly:

• Discount Retail (Supercenters, Neighborhood Markets)
• Wholesale Clubs (Sam’s Club)
• eCommerce (Walmart.com and international platforms)

It competes with Amazon, Costco, Target, and regional retailers worldwide.

3. Revenue Streams – How Walmart Makes Money

a) Retail Sales (Primary Revenue Driver)

• Grocery and Consumables – A huge portion of U.S. revenue
• Apparel, Electronics, and Home Goods
• Private Label Brands – High-margin product lines

b) Membership & Services

• Sam’s Club – Membership-based wholesale club
• Walmart+ – Subscription service (free delivery, fuel discounts, etc.)
• Financial Services – Walmart MoneyCard, check cashing, etc.

c) eCommerce Growth

• Online Marketplace – Competing with Amazon
• Click-and-collect & same-day delivery options

4. Competitive Advantage & Strengths

• Scale & Supply Chain Efficiency – Huge buyer power and low prices
• Brand Recognition – Trusted household name
• Omni-channel Strategy – Strong physical and digital presence
• Technology Investment – Logistics automation and data analysis
• Strong Cash Flow – Allows continuous reinvestment and price leadership

5. Risks & Challenges for Investors

• Thin Margins – Price wars and inflation pressure profits
• Labor Costs – Rising wages and employee satisfaction issues
• International Complexity – Mixed success overseas (e.g., China)
• Amazon & eCommerce Competition – Aggressive digital rivals

6. Future Growth Opportunities

• eCommerce Expansion – Competing with Amazon on logistics and delivery
• Advertising – Building its own retail media network (Walmart Connect)
• Healthcare Services – In-store clinics and telehealth
• Fintech – Walmart-backed financial technology ventures

7. Conclusion – Why Investors Care

Walmart’s consistent performance, scale, and adaptability make it a core holding for many long-term investors. Its push into digital, advertising, and healthcare offers new revenue channels while it remains a dominant force in global retail.