{"id":24988,"date":"2024-08-29T23:56:00","date_gmt":"2024-08-29T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=24988"},"modified":"2025-06-27T07:54:51","modified_gmt":"2025-06-26T23:54:51","slug":"walmart","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/","title":{"rendered":"Walmart, the real retail overlord, how it makes money?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Introduction\" >Introduction<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Founded\" >Founded<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#IPO\" >IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#One_of_the_largest_companies_in_US\" >One of the largest companies in US<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Important_history\" >Important history<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Current_operating_status\" >Current operating status<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Four_business_models\" >Four business models<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Global_layout\" >Global layout<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Main_operating_countries\" >Main operating countries<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#International_business_not_all_good\" >International business not all good<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#How_big_is_the_scale\" >How big is the scale?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Survived_from_e-commerce_trend\" >Survived from e-commerce trend<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Other_traditional_retail_peers\" >Other traditional retail peers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Can_compete_with_Amazon\" >Can compete with Amazon<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Walmart_e-commerce\" >Walmart e-commerce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Sams_Club\" >Sam&#8217;s Club<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Buffett_and_Walmart\" >Buffett and Walmart<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Competitors\" >Competitors<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Retailer_is_not_easy\" >Retailer is not easy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Profit_is_very_low\" >Profit is very low<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Customer_base_comparison\" >Customer base comparison<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Discount_stores\" >Discount stores<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Costco\" >Costco<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Home_Depot\" >Home Depot<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Lowes\" >Lowe&#8217;s<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Amazoncom\" >Amazon.com<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Walmart_family\" >Walmart family<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Operating_performance\" >Operating performance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Financial_report_of_Q4_2023\" >Financial report of Q4 2023<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Other_highlights_in_the_financial_report\" >Other highlights in the financial report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Outlook\" >Outlook<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Capital_market_performance\" >Capital market performance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Stock_split\" >Stock split<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Performance_over_the_past_five_years\" >Performance over the past five years<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Dividend\" >Dividend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Stock_buyback\" >Stock buyback<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Risks\" >Risks<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Share_price_at_all-time_highs\" >Share price at all-time highs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Geopolitics\" >Geopolitics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Capital_spending_squeezes_profits\" >Capital spending squeezes profits<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Founded\"><\/span>Founded<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 1962, brothers Sam Walton and James Walton, former employees of J.C. Penney (now listed), founded <a href=\"https:\/\/en.wikipedia.org\/wiki\/Walmart\" target=\"_blank\" rel=\"noreferrer noopener\">Walmart <\/a>(ticker: WMT), which was incorporated on October 31, 1969. .<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IPO\"><\/span>IPO<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Publicly traded on the New York Stock Exchange in 1972.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"One_of_the_largest_companies_in_US\"><\/span>One of the largest companies in US<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Walmart has been ranked at the top of the Fortune 500 list for eight consecutive years since 2014. According to the October 2022 Fortune Global 500 ranking, Walmart is the largest company in the world by total revenue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_history\"><\/span>Important history <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In 1987, the largest private satellite network system was established in the United States.<\/li>\n\n\n\n<li>In 1990, Walmart became the largest retailer in the United States.<\/li>\n\n\n\n<li>In August 1996, Walmart entered China by establishing a joint venture.<\/li>\n\n\n\n<li>In 1999, Walmart had 1.14 million employees, making it the world&#8217;s largest privately held company. In September, it entered the UK with the acquisition of 229 stores from ASDA Group for 6.7 billion pounds. Acquired 74 supermarket chains of Interspa in Germany.<\/li>\n\n\n\n<li>In May 2009, Walmart opened its first store in India.<\/li>\n\n\n\n<li>In 2016, Walmart acquired Jet.com and increased its stake in JD.com (ticker: JD) to 12.1%.<\/li>\n\n\n\n<li>In May 2018, Walmart acquired 77% of Flipkart, India\u2019s largest online retailer.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Current_operating_status\"><\/span>Current operating status<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Four_business_models\"><\/span>Four business models<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Walmart operates under 46 different names around the world. Its business can be divided into four divisions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Walmart US<\/li>\n\n\n\n<li>Walmart International<\/li>\n\n\n\n<li>Sam&#8217;s Club<\/li>\n\n\n\n<li>Global e-commerce<\/li>\n<\/ul>\n\n\n\n<p>In the United States, Walmart stores have four business forms:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Discount store<\/li>\n\n\n\n<li>Super center<\/li>\n\n\n\n<li>Neighborhood market<\/li>\n\n\n\n<li>Sam&#8217;s Club<\/li>\n<\/ul>\n\n\n\n<p>Walmart international stores include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Supermarket<\/li>\n\n\n\n<li>Hypermarket<\/li>\n\n\n\n<li>Cash and carry store<\/li>\n\n\n\n<li>Home renovation<\/li>\n\n\n\n<li>Special electronic products<\/li>\n\n\n\n<li>Dining room<\/li>\n\n\n\n<li>Fashion store<\/li>\n\n\n\n<li>Pharmacy<\/li>\n\n\n\n<li>Convenience store<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Global_layout\"><\/span>Global layout<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Main_operating_countries\"><\/span>Main operating countries<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Walmart operates in all 50 states and Puerto Rico. 65% of Walmart&#8217;s sales come from its U.S. business.<\/li>\n\n\n\n<li>Operating Walmex in Mexico.<\/li>\n\n\n\n<li>ASDA operates in the UK.<\/li>\n\n\n\n<li>Operates Seiyu Department Store (including MUJI) in Japan.<\/li>\n\n\n\n<li>Massmart operates in many African countries.<\/li>\n\n\n\n<li>It jointly operates &#8220;Best Price Modern Wholesale&#8221; with India&#8217;s Bharti Enterprises.<\/li>\n\n\n\n<li>Wholly owns Walmart businesses in Argentina, Brazil and Canada.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"International_business_not_all_good\"><\/span>International business not all good<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Walmart&#8217;s investments outside the U.S. have had mixed results:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Successful operations and subsidiaries are located in Canada, the United Kingdom, Central America, South America and China.<\/li>\n\n\n\n<li>But operations in Germany, Japan and South Korea failed.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_big_is_the_scale\"><\/span>How big is the scale?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to the latest records on Walmart\u2019s website:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Walmart operates in 19 countries.<\/li>\n\n\n\n<li>As of October 31, 2022, Walmart had more than 10,500 stores worldwide and numerous e-commerce websites.<\/li>\n\n\n\n<li>It has 2.1 million employees worldwide, including nearly 1.6 million in the United States alone. Walmart is also the world&#8217;s largest private employer.<\/li>\n\n\n\n<li>90% of Americans live within 10 miles of a Walmart store.<\/li>\n\n\n\n<li>210 distribution centers, a transportation fleet of 9,000 tractors, 80,000 trailers and more than 11,000 drivers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Survived_from_e-commerce_trend\"><\/span>Survived from e-commerce trend<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_traditional_retail_peers\"><\/span>Other traditional retail peers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Kmart and Sears, competitors that were much larger than Walmart thirty years ago, have long since disappeared and collapsed. Macy&#8217;s (ticker: M) has also been rumored to be delisted, bankrupt, or sold due to the rise of e-commerce in recent years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_compete_with_Amazon\"><\/span>Can compete with Amazon<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Walmart is one of the few brick-and-mortar retailers that can keep up with Amazon.com (ticker: AMZN). Walmart accomplished this by upgrading its e-commerce and fulfillment capabilities, using physical stores to fulfill online orders, and closely matching Amazon&#8217;s prices.<\/p>\n\n\n\n<p>In an effort to block Amazon Prime&#8217;s grip on customers, Walmart has also expanded its own Walmart+ subscription program, which offers free shipping, discounts and a subscription to its streaming service Paramount+. It has acquired smart TV maker Vizio, just in time to help its offensive on Amazon&#8217;s Fire set-top boxes and smart TVs.<\/p>\n\n\n\n<p>In addition, Walmart relies on Sam&#8217;s Club to catch up with Costco (ticker: COST) in the warehouse membership market, and strengthens its overseas e-commerce business by acquiring India&#8217;s Flipkart and taking a stake in China&#8217;s JD.com. These bold moves will allow it to clearly differentiate its positioning from rival Target (ticker:TGT), which only operates in the United States and does not have a warehouse club chain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Walmart_e-commerce\"><\/span>Walmart e-commerce <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Walmart.com is the e-commerce arm of Walmart and provides the following diverse features:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Walmart App: From Walmart Pay to grocery orders for mobile express returns, prescription refills, and same-day pickup, we help you get more done at the touch of a button.<\/li>\n\n\n\n<li>Mobile Scan &amp; Go: Shop and check out in-store using your mobile phone.<\/li>\n\n\n\n<li>Curbside Pickup: Order online and pick up in store.<\/li>\n\n\n\n<li>Next Day Shipping: In many markets, customers can enjoy fast, free shipping on qualifying orders over $35.<\/li>\n\n\n\n<li>Walmart+: A membership program that brings together in-store and online deals.<\/li>\n\n\n\n<li>Walmart GoLocal: Walmart\u2019s delivery-as-a-service business that provides delivery services to customers at businesses of all sizes.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sams_Club\"><\/span>Sam&#8217;s Club<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The company opened its first Sam&#8217;s Club in 1983 to help small and medium-sized business owners save money when buying goods in bulk. It is a membership-based division of Walmart that operates independently, similar to Costco.<\/p>\n\n\n\n<p>Since then, Sam&#8217;s Club has grown rapidly, serving families and entrepreneurs through nearly 600 clubs in the U.S., more than 200 clubs internationally, SamsClub.com and mobile apps.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffett_and_Walmart\"><\/span>Buffett and Walmart<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Buffett also invested in Walmart, but Buffett made a big mistake in Walmart, resulting in a loss of billions of dollars. For details, see my two previous posts:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/13\/investment-mistakes\/\">Investment mistakes Buffett made in his first 25 years<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/07\/mistakes-of-omission\/\">Mistakes of omission and mistakes of commission<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Competitors\"><\/span>Competitors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Retailer_is_not_easy\"><\/span>Retailer is not easy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Walmart is located in the most difficult retail industry to operate. This industry has low profit margins, huge labor costs, and high inventory pressure. All of WalmMart&#8217;s competing manufacturers are not ordinary people, because none of the peers that can survive at present are simple.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Profit_is_very_low\"><\/span>Profit is very low<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In its fiscal second quarter of 2024, the most recent quarter ended February 18, Costco&#8217;s gross margin on merchandise sales was below 11%. By comparison, Walmart and Target have gross margins of 24% and 28%, respectively.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Customer_base_comparison\"><\/span>Customer base comparison<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A typical Walmart user usually owns his or her own home, has an annual income of between US$40,000 and US$80,000, and is a middle-income earner. The number of high-income customers with an annual income of more than $100,000 also continues to increase.<\/p>\n\n\n\n<p>Walmart has the highest customer loyalty. In 2023, more than 95% of shoppers have visited Walmart twice or more. The typical customer shops at Walmart at least once a week, about 67 times a year, spending about $54 each time, and annual spending of $3,578, and the website and app account for an increasing proportion of these transactions.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Discount_stores\"><\/span>Discount stores<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Among stores such as dollar discount stores, Dollar General and Dollar Tree are typical representatives. For details, see my post of: &#8220;&#8221;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/\">Dollar General vs. Dollar Tree<\/a>&#8220;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Costco\"><\/span>Costco<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Costco\u2019s biggest fans are Asians, who are nearly twice as likely to shop at Costco as the average U.S. consumer. And Costco members are more likely to be homeowners who love organic food and actively manage their health.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Home_Depot\"><\/span>Home Depot<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Home Depot (ticker: HD) mainly serves two core customer groups, DIY customer group and professional customer group. After DIY customers purchase the goods, they will go home and do their own handicrafts. Professionals are usually electricians, plumbers, painters and other people with professional needs. The typical user of Home Depot earns more than $80,000 per year.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lowes\"><\/span>Lowe&#8217;s <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Lowe&#8217;s Company (ticker: LOW) mainly serves the DIY customer base, but Home Depot&#8217;s users are closer to the city. Lowe&#8217;s Company&#8217;s users are mostly in rural areas, with incomes between US$40,000 and US$80,000.<\/p>\n\n\n\n<p>In terms of shopping behavior, the typical Costco user visits Costco about once every two weeks, about 30 times per year, spending about $100 each time, for an annual expenditure of $3,018.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amazoncom\"><\/span>Amazon.com<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>But Amazon\u2019s typical users shop more online, with about one-fifth of their purchases occurring online. The typical Amazon customer places 72 orders on Amazon per year, spends an average of about $37, and has an annual spend of $2,662.<\/p>\n\n\n\n<p>In comparison, typical customer spending at Home Depot and Lowe&#8217;s is much lower. A typical Home Depot user purchases about 10 times a year, spending about $85 each time, and the annual expenditure is $856. A typical Lowe&#8217;s customer purchases at Lowe&#8217;s nine times a year, spending about $90 each time, for a total of $809.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Walmart_family\"><\/span>Walmart family<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Walmart family has the most successful wealth management method for heirs of wealthy American families, and can be said to be the most successful example of family financial management. Not only do they still control Walmart, but the descendants of the founder are also working hard to accumulate wealth and run businesses.<\/p>\n\n\n\n<p>In fact, Walmart is still a family business to this day. The actual controlling shareholder is the Walton family, which owns 48% of Walmart&#8217;s shares.<\/p>\n\n\n\n<p>But this part is beyond the scope of this article. If I have the chance, I will find time to write a special introduction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Operating_performance\"><\/span>Operating performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Financial_report_of_Q4_2023\"><\/span>Financial report of Q4 2023<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Revenue in the fourth quarter of 2023 was US$173.4 billion, an increase of 6% from the previous year. Its full-year sales also reached US$648.1 billion, an annual increase of 6%.<\/p>\n\n\n\n<p>The company expects revenue to continue to grow in 2024, with net sales increasing by at least 3% over the previous year. Walmart&#8217;s net sales in 2023 (excluding some revenue such as Sam&#8217;s Club membership fees) totaled US$642.6 billion.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_highlights_in_the_financial_report\"><\/span>Other highlights in the financial report<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>E-commerce revenue increased by 23% year-on-year, exceeding US$100 billion for the whole year. Its advertising business is booming, with fourth-quarter sales rising 33% annually and fiscal 2024 sales reaching $3.4 billion, up nearly 30% from the same period last year.<\/p>\n\n\n\n<p>Walmart also has a booming international business. This part of the business generated $114.6 billion in revenue in 2023, up more than 13% from 2022.<\/p>\n\n\n\n<p>In addition to revenue growth, Walmart&#8217;s free cash flow also grew, increasing $3.1 billion from fiscal 2023 to $15.1 billion. FCF provides insight into the cash Walmart has available to invest in its business, pay debt, buy back stock, and fund dividends. Walmart&#8217;s healthy growth in free cash flow allowed it to raise its dividend for the 51st consecutive year and its largest increase in more than a decade.<\/p>\n\n\n\n<p>The company is also well-positioned to invest in its business, as part of which it acquired TV maker Vizio for about $2.3 billion. Walmart&#8217;s Vizio deal isn&#8217;t just about selling more TVs in its stores. MacMillan said: This acquisition accelerates the expansion of our advertising platform into connected TV business.<\/p>\n\n\n\n<p>Connected TV (CTV) is one of the fastest-growing areas in advertising, with global revenue expected to grow from $25.9 billion in 2023 to $42.5 billion in 2028. Vizio TVs are built with technology that powers CTV advertising. In fact, Vizio&#8217;s advertising revenue increased 36% year over year in the fourth quarter. Additionally, its advertising revenue has accounted for the majority of Vizio&#8217;s sales growth over the past five years, according to Walmart.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Outlook\"><\/span>Outlook<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The company ranks second in U.S. e-commerce sales, behind Amazon. Walmart is rapidly expanding its advertising business, and acquiring Vizio could help further strengthen that revenue stream.<\/p>\n\n\n\n<p>From fiscal 2024 to fiscal 2026, analysts expect Walmart&#8217;s revenue to grow at a compound annual growth rate of 4%, while its earnings per share will grow at a compound annual growth rate of 35%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_market_performance\"><\/span>Capital market performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_split\"><\/span>Stock split<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On February 26, 2024, Walmart executed its first stock split in more than 20 years, and as of February 26, shares were trading following the split. The company&#8217;s decision to pursue a 3-for-1 split was motivated in part by a desire to ensure the stock was affordable for employees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Performance_over_the_past_five_years\"><\/span>Performance over the past five years<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>From 2019 to 2023, Walmart&#8217;s annual revenue will grow at a compound annual growth rate of 5%, while earnings per share will grow at a compound annual growth rate of 21%.<\/p>\n\n\n\n<p>Walmart&#8217;s stock price is up 85% over the past five years, resulting in a total return of 101% after dividends are reinvested.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dividend\"><\/span>Dividend<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Its stock trades at 26 times forward earnings, the dividend offers a decent forward yield of 1.4%, and management has raised the dividend annually for 51 consecutive years. A long history of dividends is the icing on the cake, providing a source of passive income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_buyback\"><\/span>Stock buyback<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Over the past two decades, the company has repurchased nearly 40% of its outstanding shares.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risks\"><\/span>Risks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Share_price_at_all-time_highs\"><\/span>Share price at all-time highs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Walmart&#8217;s stock is now at all-time highs &#8212; for much of the 2010s, it traded at less than 20 times earnings and was more expensive than most of its peers. Target, for example, trades at a price-to-earnings ratio of just 18 times.<\/p>\n\n\n\n<p>Walmart insiders actually sold 86 times more shares than they bought in the last 12 months. In the past three months, they sold 64 times more shares than they bought. This cold internal sentiment is a strong indication that its valuation is outpacing its growth rate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Geopolitics\"><\/span>Geopolitics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Walmart operates nearly 400 physical stores and multiple e-commerce platforms in China, and its stores in the United States and other markets rely heavily on Chinese suppliers to provide cheap products. As a result, new trade restrictions and tariffs against China could disrupt its overseas operations and squeeze its gross margins.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_spending_squeezes_profits\"><\/span>Capital spending squeezes profits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Walmart&#8217;s expansion of its e-commerce, delivery and digital media ecosystem to counter Amazon could further squeeze its operating profits. Amazon can rely on its high-margin cloud platform Amazon Web Services to subsidize its low-margin retail and digital media businesses. Walmart doesn&#8217;t have a similar profit engine.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"253\" height=\"68\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/03\/WMT-1600x1200-1.jpg\" alt=\"walmart\" class=\"wp-image-25019\"\/><figcaption class=\"wp-element-caption\">credit: walmart<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/29\/walmart\/\" target=\"_blank\" rel=\"noreferrer noopener\">Walmart, the real retail overlord, how it makes money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/06\/26\/costcos-valuation\/\">Why is Costco\u2019s valuation so staggering? <\/a>&#8220;<\/li>\n\n\n\n<li> &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/27\/costco-moats-difference\/\" target=\"_blank\" rel=\"noreferrer noopener\">Costco&#8217;s moats, and the Differences from Other Competitors<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/02\/02\/how-costco-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Costco make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/09\/williams-sonoma-surged\/\">Upscale retailer Williams-Sonoma, stock surged in recent years, What\u2019s special?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/\">Dollar General vs. Dollar Tree<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/16\/amazon-vs-alibaba\/\" target=\"_blank\" rel=\"noreferrer noopener\">Amazon vs. Alibaba<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/21\/why-shopify-is-so-killing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Shopify is so killing?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/26\/shopify-the-only-rival-admitted-by-the-founder-of-amazon-how-does-it-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">Shopify, the only rival admitted by the founder of Amazon, how does it make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/14\/discover-shopify-early\/\">Why is it difficult for investors to discover Shopify potential early?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/23\/sea-shopee-southeast-asia-most-valuable-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sea, the parent company of Shopee, the most valuable company in Southeast Asia<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/02\/mercadolibre-introduction\/\" target=\"_blank\" rel=\"noreferrer noopener\">Latin America&#8217;s e-commerce dominant MercadoLibre<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/12\/mercadolibre-keeps-delivery\/\" target=\"_blank\" rel=\"noreferrer noopener\">MercadoLibre that Amazon cannot beat. Why it keeps delivery?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/13\/investment-mistakes\/\">Investment mistakes Buffett made in his first 25 years<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/07\/mistakes-of-omission\/\">Mistakes of omission and mistakes of commission<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Walmart has been ranked at the top of the Fortune 500 list for eight consecutive years since 2014. According to the October 2022 Fortune Global 500 ranking, Walmart is the largest company in the world by total revenue.<\/p>\n","protected":false},"author":1,"featured_media":25019,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[128,130,11],"tags":[227,158,215,274,1326,1322,217,219],"class_list":["post-24988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail","category-ecommerce","category-buffett","tag-amzn","tag-baba","tag-cost","tag-jd","tag-lo","tag-m","tag-tgt","tag-wmt"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/24988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=24988"}],"version-history":[{"count":32,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/24988\/revisions"}],"predecessor-version":[{"id":37114,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/24988\/revisions\/37114"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/25019"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=24988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=24988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=24988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}