Last update on 2024-03-05

Walmart (WMT) Explained

An Overview of WMT: Its Business Strategy, Core Products, Major Competitors, and Essential Insights into its Role in the Discount Stores Industry

Americas largest retailer by sales, Walmart operated over 10,500 stores under 46 banners at the end of fiscal 2022, selling a variety of general merchandise and grocery items. Its home market accounted for 82% of sales in fiscal 2022, with Mexico and Central America (6%) and Canada (4%) its largest external markets. In the United States at the namesake banner, around 56% of sales come from grocery, 32% from general merchandise, and 11% from health and wellness items. The company operates several e-commerce properties apart from its eponymous site, including Flipkart and shoes.com (it also owns a roughly 10% stake in Chinese online retailer JD.com). Combined, e-commerce accounted for about 13% of fiscal 2022 sales.

Current Business Strategy

As of my last update in early 2023, Walmart's strategy focuses on leveraging its massive brick-and-mortar presence while expanding its e-commerce and digital capabilities. This includes implementing advanced technology for inventory management, enhancing the online shopping experience, and expanding delivery and pickup options to increase convenience for customers. Walmart also emphasizes sustainability and the integration of ESG (environmental, social, and governance) principles into its operations.

Most known Products

Here is the list of the 5 most well-known products of Walmart (WMT):

• Great Value: A private label brand offering a wide range of affordable general merchandise and grocery items, from food products to household supplies.
• Equate: Walmart's health and personal care brand offering pharmacy, health, and beauty products like over-the-counter medications, first aid supplies, and hygiene products.
• Mainstays: A home goods brand providing a variety of products for decorating and furnishing living spaces, including bedding, kitchen appliances, and decor items.
• George: A fashion brand originally from the UK, now sold at Walmart, offering affordable clothing for men, women, and children, including outerwear, casual wear, and footwear.
• Ozark Trail: Walmart's brand for outdoor equipment and gear, such as tents, sleeping bags, and camping accessories, targeting casual campers and outdoor enthusiasts.

Competitors

Here is the list of the main 5 competitors of Walmart (WMT):

• AMZN: Amazon is a dominant competitor in the retail space, particularly in e-commerce. Its vast online marketplace and Prime membership program present strong competition to Walmart's online and physical stores.
• TGT: Target offers a similar mix of merchandise, including groceries, clothing, and home goods. Its focus on design and customer experience competes directly with Walmart's general merchandise and appeal to budget-conscious shoppers.
• COST: Costco Wholesale operates membership warehouses offering bulk quantities of merchandise at discount prices. Its business model competes with Walmart’s Sam’s Club, targeting both individual consumers and businesses.
• KR: Kroger is a leading supermarket chain in the United States, competing directly with Walmart's grocery segment. Both companies fight for market share in the grocery industry, emphasizing price, quality, and convenience.
• HD: Home Depot is the largest home improvement retailer in the U.S., competing with Walmart in categories such as home appliances, garden products, and DIY supplies. While their focus is more niche, they compete for the home improvement spending of Walmart's customer base.