Last Update On: 03/08/2010:

Wal-Mart is the world’s largest retailer, with $401 billion in sales expected by the end of fiscal 2009. It operates three segments: Wal-Mart Stores, which accounted for about 64% of revenue Sam’s Clubs, a membership warehouse chain (12% of revenue) and the International segment, with 24% of sales. The company ended 2009 with 803 Wal-Mart discount stores, 2,746 supercenters, 605 Sam’s Clubs, and 152 Neighborhood Markets in the United States. Internationally, it had 4,109 stores. The company’s floor space totaled about 945 million square feet worldwide. While its sheer size suggests that the level of growth enjoyed in earlier years would be difficult today, there is, at present, no major change in the ongoing economics of the firm’s business model. That said, the efficiency with which Wal-Mart offers products for its customers bespeaks of a secure and well-run operation that is scarcely likely to introduce troublesome surprises. Its financial strength, dominant market position, and low cost structure make for a favorable risk/reward balance. Also, the firm has high real estate ownership and over $10 billion in cash. The U.S. division is the largest supermarket operator in the country, with more than a 25% market share of the $500+ billion industry.