Walmart is the largest retailer in the world, operating over 2.1 million associates across 50 US states and 14 other countries. However, its dominance is threatened by Tesco, the fourth largest retailer that has been expanding internationally. To maintain its strength, Walmart plans to [1] increase smaller neighborhood market stores to reach more customers, [2] establish a permanent focus group to tailor stores to local needs, and [3] invest steadily over several years to continue growing its revenue and customer base while retaining its lead retailer status. However, these aggressive expansion plans also risk reducing Walmart's brand power and increasing accusations of anticompetitive behavior.

1. Maintaining the Strength of the Retail
Giant

2. Continued Success
● No. 1 Retailer in the world
● First discount store in 1962
● All 50 states & 14 other countries
● 2.1 million associates worldwide
● Revenue of $408 billion

3. Walmart Formats
NEIGHBOR
SUPERSTORE HOOD
MARKET
TRADITIONAL
DISCOUNT
WAREHOUSE STORE
STORE

4. Tesco on the Rise
● First store in 1929 in North London
● Currently No. 4 Retailer in the
world
● Holds 30% of the UK market
● Now exists in 14 countries
● £851 million international profit
● THREAT TO WALMART IN THE
US*

5. FORMATS
1. Extra
2. Home Plus
1. Superstore
1. Metro
1. Express* 6
3 4 5
6. One-Stop

6. Successes Failures
● Branding Name
● Rapid revenue
● Lack of research
growth
● Customer service
● Provide for
● Formatting
customers
issues
● International
Success
● Full U.S.
● Extensive research assimilation
● Rapid expansion ● No name
● International recognition
success ● Lack of variety
● Smaller stores ● Lack of name
brands

7. Shrink Size, Boost Buys
● Customers straying from large store formats
● Tesco expands small size most
● Only 4 exist; concentrated on the east coast
So…
● Increase number of marketside stores
● Build in new Walmart territories
● Reach neglected markets

8. Walmart Formats
SUPERSTORE NEIGHBORHOOD
MS MARKET
TRADITIONAL
DISCOUNT
WAREHOUSE STORE
STORE

9. a Walmart for All*Carts
● Answers are with consumers
● Specific store data gathered by focus groups
● Permanent focus group established
And…
● Different ethnicities in different areas
● Advisory board to tailor local needs
● Niche market created

10. Projected Endeavor
Investment
Percentage
increase
(in %)
Years of investment

11. Projected Growth
Years of Increase

12. Benefits Risks
● Keep lead retailer status ● Lose Brand Power
● Increase revenue ● Increase monopoly
● Gain new customers infamy
● Increase customer
retention
● New branding recognition