Pest Analysis For Walmart

1125 Words 5 Pages
Overview of the Company Wal-Mart Stores, Inc. operates retail stores throughout the U.S. and international markets in twenty six countries under the names Wal-Mart and Sam’s Club (Reuters). In 2013, the U.S. segment of operations generated 59 percent of net sales, the international segment accounted for 29 percent of net sales, and sales from Sam’s Club represented approximately 12 percent of net sales (Reuters). Wal-Mart is famous for helping to invent the concept of the “superstore”. Wal-Mart’s supercenters range between 70,000 and 260,000 square feet (Reuters). Wal-Mart also operates smaller retail stores, that range anywhere from 1,000 to 66,000 square feet (Reuters). Currently, Wal-Mart operates retail operations through its “supercenters, …show more content…
and in international countries, like Germany for instance, “there was been a backlash against Wal-Mart,” particularly by those who live in smaller communities because they view Wal-Mart as posing “a threat to local retailers” (Hill, Jones, & Schilling, 2013, p. 3). Because of local opposition, Wal-Mart has had difficulty in purchasing land and getting development permits in some communities (Hill, Jones, & Schilling, 2013, p. 3). This is a situation in which the negative public perception of Wal-Mart is impacting its ability to open new retail stores, reach new consumers, and is therefore directly limiting its growth. This represents a serious critique faced by the entire discount retailing sector, but Wal-Mart has become the largest, most public face of this problem, likely due to films such as “Wal-Mart: The High Cost of Low Price,” a documentary film that argues that Wal-Mart has harmed the retailing sector, and small communities themselves, by posing such steep competition that smaller competitors simply cannot keep up in the battle toward offering increasingly low prices. Just as McDonald’s became the face of public criticism of fast food companies in general, so Wal-Mart has become the face of the public criticisms aimed at the discount retail sector. This problem must be resolved in order for Wal-Mart to continue seeing the kind of growth it expects to see in the

Related Documents