Company COGS InventoriesAlbertsons 29038 3036

Costco 46347 4015Federated Dept. 13272 5459

Gap Inc. 10154 1696Kroger Co. 45565 4886

Sears Holdings Corp. 35505 9068Safeway Inc 27303 2766Target Corp 34927 5838

Wal-mart Stores 240391 32191

By 2006No. of stores worldwideNo. of employee worldwideNo. of employees in USOnly 500,000 employees outside US

Employees in Logistics divisionTruck driversNo. of distribution centers

Albertso

ns

Costco

Federa

ted Dep

t.

Gap In

c.

Kroge

r Co.

Sears

Holdings Corp

.

Safew

ay In

c

Targe

t Corp

Wal-

mart St

ores0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

Inventory Holding Period

Axis Title

No. of cases processed per yearAvg. distance btwn distribution center and storesAvg driving speed for truckstime taken to cover the distance

Inventory Turnover Ratio9.56 38.16

11.54 31.622.43 150.135.99 60.979.33 39.143.92 93.229.87 36.985.98 61.017.47 48.88

wal mart follows ELDP, Target does not

65001.8 million Segment1.3 million general merchandise

Specialty RetailersDepartment StoreGrocery Store

750007800

114

Inventory Holding Period

Average Industry inventory

Holding Period

Albertso

ns

Costco

Federa

ted Dep

t.

Gap In

c.

Kroge

r Co.

Sears

Holdings Corp

.

Safew

ay In

c

Targe

t Corp

Wal-

mart St

ores0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

Inventory Holding Period

Axis Title

5 billion130 miles65 miles2 hours

wal mart follows ELDP, Target does not

CompetitorsSears, TargetGap , LimitedDillard, Federated, JC PenneyKroger, Albertsons,Safeway

How is Wal-mart doing compared to industry average and relative to its competitors?

General merchandise store18%

Food and bev-erages18%

food services and drinking places14%

gasoline14%

building materials and gardening equip

11%

furniture, home furnish-ing,electronic appliances

7%

health and personal care7%

clothing and clothing ac-cessories

7%

sporting goods, hobby, book, music3%

Sales in 2005 (billion $)

1989

RetailerWal-mart 1.70%Kmart 3.50%Sears 5%No. of suppliers 90000

Distribution cost as a %age of cost of sales

General merchandise store18%

Food and bev-erages18%

food services and drinking places14%

gasoline14%

building materials and gardening equip

11%

furniture, home furnish-ing,electronic appliances

7%

health and personal care7%

clothing and clothing ac-cessories

7%

sporting goods, hobby, book, music3%

Sales in 2005 (billion $)

Analysis

Category Sales in 2005 (billion $)General merchandise store 525.7Food and beverages 519.3food services and drinking places 396.6gasoline 388.3building materials and gardening equip 327furniture, home furnishing,electronic applianc 211.7health and personal care 208.4clothing and clothing accessories 201.7sporting goods, hobby, book, music 81.9

General merchandise store18%

Food and beverages18%

food services and drinking places14%

gasoline14%

building materials and garden-ing equip

11%

furniture, home furnishing,electronic appliances

7%

health and personal care7%

clothing and clothing accessories7%

sporting goods, hobby, book, music3%

Sales in 2005 (billion $)

General merchandise store18%

Food and beverages18%

food services and drinking places14%

gasoline14%

building materials and garden-ing equip

11%

furniture, home furnishing,electronic appliances

7%

health and personal care7%

clothing and clothing accessories7%

sporting goods, hobby, book, music3%

Sales in 2005 (billion $)

General merchandise store18%

Food and beverages18%

food services and drinking places14%

gasoline14%

building materials and garden-ing equip

11%

furniture, home furnishing,electronic appliances

7%

health and personal care7%

clothing and clothing accessories7%

sporting goods, hobby, book, music3%

Sales in 2005 (billion $)