Maintaining the Strength of the Retail Giant

● No. 1 Retailer in the world● First discount store in 1962● All 50 states & 14 other countries● 2.1 million associates worldwide● Revenue of $408 billion

Continued Success

WAREHOUSESTORE

NEIGHBORHOOD

MARKETSUPERSTORE

TRADITIONAL DISCOUNT STORE

Walmart Formats

● First store in 1929 in North London● Currently No. 4 Retailer in the

world● Holds 30% of the UK market● Now exists in 14 countries● £851 million international profit ● THREAT TO WALMART IN THE

US*

Tesco on the Rise

46

3 5

FORMATS

1. Extra

2. Home Plus

1. Superstore

1. Metro

1. Express*

6. One-Stop

Successes Failures

● Branding Name● Rapid revenue

growth● Provide for

customers● International

Success

● Lack of research● Customer service● Formatting

issues

● Extensive research● Rapid expansion● International

success● Smaller stores

● Full U.S. assimilation

● No name recognition

● Lack of variety● Lack of name

brands

● Customers straying from large store formats ● Tesco expands small size most● Only 4 exist; concentrated on the east coast

So…

● Increase number of marketside stores● Build in new Walmart territories● Reach neglected markets

Shrink Size, Boost Buys

Walmart Formats

WAREHOUSESTORE

NEIGHBORHOODMARKET

SUPERSTORE

TRADITIONAL DISCOUNT STORE

MS

● Answers are with consumers ● Specific store data gathered by focus groups● Permanent focus group established

And…

● Different ethnicities in different areas● Advisory board to tailor local needs● Niche market created

a Walmart for All*Carts

Projected Endeavor Investment

Percentage increase

(in %)

Years of investment

Projected Growth

Years of Increase

Benefits Risks● Keep lead retailer status● Increase revenue● Gain new customers● Increase customer

retention● New branding recognition

● Lose Brand Power● Increase monopoly

infamy