Finance Essay

2569 Words Dec 31st, 2011 11 Pages
Wal-Mart Stores, Inc was established in 1969 and it is a company that operates different formats of retail stores across the world. Wal-Mart offers a variety of general merchandise to its customers and this includes electronics, home furnishings, housewares, healthy and beauty aids, hardware, automotive products, jewelry and other products. Wal-Mart operations are classified into three business segments which include Wal-Mart U.S, Wal-Mart international and Sam’s club. The company has different retail formats that includes discount stores, supercenters, neighborhood markets, express stores, market side and also does business online through Walmart.com (Wal-Mart, 2011). Reuters (2011) provides that Wal-Mart has retail stores in 50 …show more content…
During the previous financial period the international business segment contributed 26.1% of net sales (Reuters, 2011). Sam’s Club business segment is membership club warehouse that offers various types of merchandise and services to its members. Sam’s Club operates locally and internationally whereby it has 609 locations in the country and over 100 Sam’s Clubs in countries such as Puerto Rico, Brazil, Mexico and China (Wal-Mart, 2011). Sam’s Club has a wide range of departments that include appliance, housewares, grocery, sports and fitness, books and music, and home furnishings. Sam’s Club contributed 11.8% of the company’s net sales. Wal-Mart’s strength includes the fact that the company has a reputation of offering quality and low cost products, and it is also a global company. Global presence and customer satisfaction enable the company to sustain growth. Wal-Mart also has an aggressive growth strategy which is evidenced by the number of retail stores it operates and also its internal presence. By having different types of store formats the company is able to attract a wide range of customers thus improving sales (Company Spotlight, 2006). In the financial year ending January 31, 2011 the company recorded total revenue amounting to $ 421, 849 million compared to $ 408, 085 million in financial year ended January 2010. Due to increased revenue the company’s operating and net income also

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