It's time for a business breakdown! Welcome to WatchMojo, and today we’re tracing the history of the world’s largest company by revenue.
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00:00Known for its low prices and massive footprint, Walmart takes in more than one in four grocery dollars in the U.S.
00:06Welcome to WatchMojo, and today we're tracing the history of the world's largest company by revenue, Walmart.
00:12We have 4,700 locations across the U.S.
00:15And if the store acts like a fulfillment center, we can send those items the shortest distance in the fastest time.
00:24The 1960s.
00:26Walmart emerged in the 1960s as a modest but innovative retail player that would ultimately reshape American commerce.
00:32Founded by Sam Walton in 1962 in Rogers, Arkansas, the first Walmart was a discount variety store focused on low prices and customer service.
00:40In 1962, Sam opened his first large discount store under the Walmart name in Rogers, Arkansas.
00:47It was less than one-fifth the size of today's average Walmart and had only 25 employees.
00:52Walton targeted rural areas with limited discount options, trailblazing the concept of everyday low prices instead of periodic sales to foster customer loyalty and attract budget-conscious shoppers.
01:02By prioritizing efficiency and cost-cutting, Walmart maintained these low prices while expanding.
01:08Sam and his associates had proved the doubters wrong.
01:10A discounter who truly offered the consumer the assurance of low prices every day could be profitable in rural America.
01:17By the end of the decade, Walmart had grown to 32 stores and was experimenting with larger formats, setting the stage for its national expansion.
01:25The 1970s.
01:26Walmart's expansion accelerated in the 1970s as it opened larger stores and adopted emerging technologies to boost efficiency.
01:33The 1970s were a decade of intense growth for Walmart.
01:36In 1970, Walmart went public, and in 1972, the company was listed on the New York Stock Exchange.
01:43Becoming a publicly traded company allowed Walmart to raise capital, fueling its growth.
01:47Walmart's adoption of computerized inventory systems and a hub-and-spoke distribution model set industry standards, helping it achieve economies of scale.
01:55The 1970s saw Walmart grow in many ways, from its first distribution center to more stores to bigger stores, more merchandise and more employees, and of course, increased sales.
02:05By the decade's end, Walmart had expanded beyond Arkansas, operating over 270 stores across southern and midwestern states.
02:13The 1980s.
02:14In the 1980s, Walmart's growth reached new heights, transforming it into a national retail powerhouse.
02:20The 1980s ushered in a new accelerated expansion with the purchase of 91 Big K stores located primarily in the southeast.
02:27Walmart took a major step towards becoming a national discounter.
02:31The company expanded into the northeast and west, becoming a trailblazer in barcoding and electronic data interchange systems, which streamlined inventory management and cut costs.
02:41Walmart also began entering the grocery market with supercenters that combined general merchandise and groceries, positioning itself as a one-stop shopping destination.
02:50In Garland, Texas, Walmart opened its first combination grocery and general merchandise store, dubbed Hypermart USA.
02:57And while the Hypermart concept was exciting, with associates roller-skating around the enormous facility, it was a concept eventually modified to become Walmart Supercenters.
03:07By the end of the 1980s, Walmart was the largest retailer in the United States, with over 1,400 stores.
03:14The 1990s.
03:15The 1990s marked Walmart's expansion into international markets, including Mexico, Canada, and the UK, making it a global retail powerhouse.
03:24Everyday low prices went international with the opening of a store in Mexico, followed by Argentina, China, and others, again confirming Sam Walton's vision.
03:32Walmart diversified its store formats, introducing smaller neighborhood formats focused on groceries and pharmacy items to complement its supercenters and penetrate urban markets more effectively.
03:42Advanced satellite communication and data analytics helped optimize its operations.
03:47The company continued to experiment with new ideas, and in doing so, Walmart became the nation's top retailer, surpassing even Sears, and was recognized as an icon of American ingenuity.
03:59However, Walmart also faced criticism for its labor practices, environmental impact, and effects on local businesses.
04:06Despite these controversies, Walmart's global influence continued to grow, and by the end of the decade, it was the world's largest retailer.
04:14The 2000s.
04:15In the 2000s, Walmart's global presence expanded further, with new ventures in Asia and Latin America.
04:21The company took its everyday low prices concept around the globe, and Walmart International was created.
04:28The company faced lawsuits and criticism regarding labor practices and gender discrimination, sparking controversy.
04:34Walmart invested in IT, supply chain automation, and data analytics to enhance operational efficiency.
04:40The latter part of the decade saw Walmart beginning to embrace e-commerce to stay relevant as online retail surged.
04:54By the end of the 2000s, Walmart had cemented its position as a global retail leader, yet scrutiny around its labor practices persisted.
05:02The 2010s.
05:04During the 2010s, Walmart navigated a changing business landscape with e-commerce at the forefront.
05:09To compete with Amazon, Walmart acquired Jet.com in 2016 and other digital native brands to boost its online capabilities.
05:17Over the past few years, Walmart's built more than 30 warehouses like this, some with robots and people, entirely dedicated to fulfilling online orders.
05:25Sustainability also became a focus, with Walmart committing to zero waste and sustainable sourcing,
05:30while initiatives aimed at supporting local communities and small businesses helped align with consumer expectations for corporate responsibility.
05:37Labor practices, however, remained controversial.
05:41A group that does not represent Walmart associates, taking issue with the wages, hours, and benefits the company provides.
05:51Walmart introduced some reforms, but resistance to unionization in the U.S. and continued scrutiny from labor advocates
05:58underscored ongoing challenges in addressing fair wages and worker protections.
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06:18The 2020s
06:20In the 2020s, Walmart is navigating a retail landscape marked by shifts in consumer behavior and digital innovation.
06:27Customers trust us for food consumer rules, they trust us for general merchandise, but they're looking for every item that they could think of.
06:34We want to make sure that we're able to do that for them.
06:37Leveraging its brick-and-mortar presence to create an omnichannel experience, Walmart has expanded its digital infrastructure,
06:43automated fulfillment centers, and offers cashierless checkout options.
06:47Accelerated by the pandemic, Walmart's online focus grew, including new subscription services like Walmart Plus to compete with Amazon Prime.
06:55Walmart Plus. It's Walmart, plus free shipping, no order minimum.
06:58For all the things you wanted, plus the one thing you forgot.
07:01The company has further invested in data analytics and AI to understand consumer preferences and optimize inventory.
07:07In response to consumer demand for convenience, Walmart has explored smaller format stores and neighborhood fulfillment centers.
07:14As Walmart evolves, it remains to be seen if it will continue as a global retail leader.
07:19They're not going to catch up and be 50% market share next year, but if they continue to do the things that they're doing,
07:25gradually they will continue to eat more and more market share, I believe.
07:28What do you think of Walmart? Let us know in the comments below.
07:31Assortment is the linchpin to this plan, and then sellers are a means to get to assortment.
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07:58You