Wal-Mart Stores, Inc. is the world's largest retailer by revenue, with $482.1 billion in sales for 2016, primarily from its U.S. operations. The company operates in three main segments: Walmart U.S., Walmart International, and Sam's Club, and heavily relies on the U.S. market for its revenue. Challenges include increasing saturation in foreign markets and overdependence on U.S. sales.

1. WAL-MART STORES, INC.
SWOT ANALYSIS 2017

2. SLIDE | 2
ABOUT WALMART
Name Wal-Mart Stores, Inc.
Logo
Industries served Retail (discount department stores and warehouse stores)
Geographic areas served Worldwide (11,528 stores in 28 countries)
Headquarters Bentonville, Arkansas, U.S.
Current CEO C. Douglas McMillon
Revenue
US$482.130 billion (2016) decreased 0.7% over US$485.651 billion (2015)
(2015)
Profit US$14.694 billion (2016) decreased 10.1% over US$16.182 billion (2015)
Employees 2.3 million (2016)
Main Competitors
Costco Wholesale Corporation, Dollar General Corporation, Dollar Tree, Inc., Kohl's
Inc., Kohl's Corporation, Macy's, Inc., Sears Holdings Corporation, Target Corporation and
Corporation and many other retailers/wholesale companies

3. Wal-Mart business overview from the company’s financial report:
“Wal-Mart Stores, Inc. helps people around the world save money and
anywhere – in retail stores, online, and through their mobile devices. We
customers every day by providing a broad assortment of quality
everyday low prices ("EDLP"), while fostering a culture that rewards and
respect, integrity and diversity. EDLP is our pricing philosophy under
low price every day so our customers trust that our prices will not
promotional activity.”[1]
SLIDE | 3
BUSINESS DESCRIPTION (1/2)
“
”

4. “Our operations comprise three reportable business segments: Walmart U.S., Walmart
International and Sam's Club. During fiscal 2016, we generated total revenues of $482 billion,
which was primarily comprised of net sales of $479 billion. Walmart U.S. is our largest segment
and operates retail stores in various formats in all 50 states in the U.S., Washington D.C. and
Puerto Rico, as well as its online retail operations, walmart.com.
Walmart International consists of the Company's operations in 27 countries outside of the U.S.
and its operations include numerous formats of retail stores, wholesale clubs, including Sam's
Clubs, restaurants, banks and various retail websites.
Sam's Club consists of warehouse membership clubs and operates in 48 states in the U.S. and in
Puerto Rico, as well as its online operations, samsclub.com.”[1]
SLIDE | 4
BUSINESS DESCRIPTION (2/2)
“ ”

5. 1. Being the largest retailer in the world, with unmatched scale of operations
and strong market power over suppliers and competitors
SLIDE | 5
STRENGTHS
S W
O T
Wal-Mart is the
world’s largest
company by
revenue and the
largest retailer in
the world.[2]
Wal-Mart Carrefour Costco Tesco
Revenue
(US$
billions)
482.130 ~113.280 113.666 ~102.684
Locations 11,528 12,296 686 6,902
Countries
served
28 35 9 13
Employees 2.3 million 380,000 205,000 476,000
Retail space
(square feet)
1.149 billion - 98.7million -
Figure 1. Comparison of the top 4 retailers in the world in 2016
Source: The respective companies’ financial reports[1][3][4][5] (Carrefour and Tesco revenues
are rounded up due to revenue translation.)

6. What does ‘being the largest retailer in the world’ mean to Wal-Mart?
• economies of scale;
• efficient and effective use of resources;
• huge gains from implementing best practices;
• experimenting with less risk;
• market power over suppliers and competitors.
SLIDE | 6
STRENGTHS
S W
O T
Wal-Mart’s revenue reached
US$482 billion in 2016, more
than the Carrefour, Costco,
Tesco and Amazon.com
revenues combined.

7. 1. Overdependence on sales from the U.S. market
SLIDE | 7
WEAKNESSES
S W
O T
In 2016, 74.5%
of all company
revenue and
more than 85%
of its operating
income came
from the U.S.
Walmart U.S.
2016
Net sales 298.378
% share of total
revenue
62.3
% revenue growth 3.6
2015
Net sales 288.049
% share of total
revenue
59.8
% revenue growth 3.1
2014
Net sales 279.406
% share of total
revenue
59.0
% revenue growth 1.8
Figure 5. Wal-Mart’s revenue growth in 2014-2016 (in US$ billions)
Source: Wal-Mart’s financial report 2016[1]

8. 1. The e-commerce market is forecast to reach US$2.5 trillion by 2018, a
projected growth of 89.1% in 4 years
SLIDE | 8
OPPORTUNITIES
S W
O T
Figure 10. Total e-commerce sales worldwide (actual and forecast), 2013-2018
1.077
1.316
1.592
1.888
2.189
2.489
25.9% 22.2% 20.9% 18.6% 16.4% 13.3%
2013 2014 2015 2016 2017 2018
Total E-Commerce Sales (in trillions, US$) Change (%)
Source: eMarketer[22]

9. • Wal-Mart currently
operates in 6 of the 10
largest e-commerce
markets in the world,
including China, the
U.S., the U.K., Japan,
Canada and Brazil.
• The company could
expand its e-commerce
operations in other
countries as well.
SLIDE | 9
OPPORTUNITIES
Countries 2014 2015 2016 2017 2018
1. China 315.75 426.26 562.66 871.79 1,011.28
2. U.S. 264.28 305.65 349.06 442.55 493.89
3. UK 70.39 82.00 93.89 114.64 124.96
4. Japan 62.13 70.83 79.33 96.87 106.07
5. Germany 51.91 63.38 73.46 91.97 99.33
6. France 34.21 38.36 42.62 49.71 53.26
7. South Korea 29.30 33.11 36.76 44.07 47.82
8. Canada 20.98 24.63 28.77 37.61 42.67
9. Russia 15.06 17.47 20.30 26.88 30.91
10. Brazil 13.34 16.28 18.80 23.79 26.17
Figure 11. Top 10 countries ranked by total e-commerce sales worldwide (actual and forecast, 2014-2018 (in US$ billions)
Source: eMarketer[30]
S W
O T

10. 1. Slowing growth of the China, Canada, Brazil, Japan and Chile retail markets
SLIDE | 10
THREATS
S W
O T
2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016 Jan
China 14.7 12.2 11.8 10.7 10.2
Canada 0.2 0.9 0.9 - 2
Brazil 7.3 5.9 6.2 0.6 (10.6)
Japan 1.5 (1.1) 4.4 (1.1) (0.1)
Chile 6.8 9.5 6 1.8 3.4
Figure 17. Retail sales growth in China, Canada, Brazil, Japan and Chile in 2010-2015 (in percentages)
Source: Trading Economics [31][32][33][34][35]
Wal-Mart’s foreign retail
markets are becoming
increasingly saturated
each year and their
growth is slowing.

11. 1. Wal-Mart Stores, Inc. (2016). 2016 Annual Report. Available at: http://s2.q4cdn.com/056532643/files/doc_financials/2016/annual/2016-
Annual-Report-PDF.pdf Accessed January 8, 2017
2. Fortune (2016). Global 500. Available at: http://fortune.com/global500/ Accessed January 8, 2017
3. Carrefour (2016). Annual Reports. Available at: http://www.carrefour.com/sites/default/files/2015_consolidated_financial_statements_0.pdf
Accessed January 8, 2017
4. Costco Wholesale (2016). Financial Reports. Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-reportsannual Accessed
January 8, 2017
5. Tesco PLC (2016). 2015 Annual Report. Available at: https://www.tescoplc.com/media/1426/tescoar15.pdf Accessed January 8, 2017
6. Forbes (2016). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed January 8, 2017
7. Whole Foods Market (2016). 2016 Annual Report. Available at: http://s21.q4cdn.com/118642233/files/doc_financials/2015/Annual/2015-WFM-
10K.pdf Accessed January 8, 2017
8. Yahoo! Finance (2016). Form 10-K for FRESH MARKET, INC. Available at: https://biz.yahoo.com/e/160323/tfm10-k.html Accessed January 8,
2017
9. Amazon.com, Inc. (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at: http://phx.corporate-
ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual Accessed January 8, 2017
10. Lundberg, A. (2002). Wal-Mart: IT Inside the World's Biggest Company. Available at: http://www.cio.com/article/2440726/it-organization/wal-
mart--it-inside-the-world-s-biggest-company.html Accessed January 8, 2017
11. Walmart (2016). History Timeline. Available at: http://corporate.walmart.com/our-story/history/history-timeline Accessed January 8, 2017
12. Walmart (2015). Annual Report 2015. Available at: http://s2.q4cdn.com/056532643/files/doc_financials/2015/annual/2015-annual-report.pdf
Accessed January 8, 2017
13. Perez, S. (2016). Walmart expands its curbside grocery pickup service in the US. Available at: http://techcrunch.com/2016/04/13/walmart-
expands-its-curbside-grocery-pickup-service-in-the-u-s/ Accessed January 8, 2017
14. Boomerang Commerce (2015). Introduction to Price Perception Index (PPI). Available at: http://www.boomerangcommerce.com/ppi-
whitepaper-rboomerang/ Accessed January 8, 2017
SLIDE | 11
SOURCES (1/3)

12. 15. Osterndorf, C. (2015). 10 reasons Walmart is the worst company in America. Available at: http://www.dailydot.com/opinion/walmart-labor-unions-bad-
company/ Accessed January 8, 2017
16. PBS (N.A.). STORE WARS: When Wal-Mart Comes To Town. Available at: http://www.pbs.org/itvs/storewars/stores3.html Accessed January 8, 2017
17. Weber, L. (2015). One Reason Wal-Mart Is Raising Pay: Turnover. Available at: http://blogs.wsj.com/atwork/2015/02/19/one-reason-wal-mart-is-raising-
pay-turnover/ Accessed January 8, 2017
18. O'Donnell, J. and McElhaney, A. (2014). Costco pays more ... because it can. Available at:
http://www.usatoday.com/story/money/business/2014/01/29/costco-wages-walmart-federal-minimum-wage-obama/5029211/ Accessed January 8, 2017
19. Ziobro, P. and Morath, E. (2015). Wal-Mart Raising Wages as Market Gets Tighter. Available at: http://www.wsj.com/articles/wal-mart-plans-to-boost-pay-
of-u-s-workers-1424353742?mod=WSJ_hp_LEFTTopStories Accessed January 8, 2017
20. American Customer Satisfaction Index (2015). Available at: http://www.theacsi.org/the-american-customer-satisfaction-index Accessed January 8, 2017
21. Interbrand (2015). Best Retail Brands 2014. Available at: http://www.interbrand.com/assets/uploads/Interbrand-Best-Retail-Brands-2014-3.pdf Accessed
January 8, 2017
22. eMarketer (2014). Retail Sales Worldwide Will Top $22 Trillion This Year. Available at: http://www.emarketer.com/Article/Retail-Sales-Worldwide-Will-Top-
22-Trillion-This-Year/1011765 Accessed January 8, 2017
23. Bahn, C. (2015). Wal-Mart focus on grocery sales. Available at: http://www.arkansasonline.com/news/2015/mar/05/wal-mart-focus-on-grocery-sales-
2015030/ Accessed January 8, 2017
24. Goodfellow, P. (2015). Walmart's $7 Billion 'Gift' To Kohl's. Available at: http://www.forbes.com/sites/forbesinsights/2015/02/24/walmarts-7-billion-gift-to-
kohls/ Accessed January 8, 2017
25. IBIS World (2016). Supermarkets & Grocery Stores in the US: Market Research Report. Available at:
http://www.ibisworld.com/industry/default.aspx?indid=1040 Accessed January 8, 2017
26. Packaged Facts (2012). Private Label Foods & Beverages in the U.S., 7th Edition. Available at: http://www.packagedfacts.com/Private-Label-Food-
7165114/ Accessed January 8, 2017
27. Packaged Facts (2014). Private Label Foods & Beverages in the U.S., 8th Edition. Available at: http://www.packagedfacts.com/Private-Label-Foods-
8358109/ Accessed January 8, 2017
SLIDE | 12
SOURCES (2/3)

13. 28. IRi (2013). Private Label & National Brands: Paving the Path to Growth Together. Available at:
http://www.iriworldwide.com/Portals/0/T_T%20December%202013%20Private%20Label.pdf Accessed January 8, 2017
29. Progressive Grocer (2013). 1 in 3 Grocery Shoppers Use Mobile Devices in Store: Study. Available at: http://www.progressivegrocer.com/1-3-grocery-
shoppers-use-mobile-devices-store-study Accessed January 8, 2017
30. eMarketer (2014). Mobile Draws in Deal-Seeking Grocery Shoppers. Available at: http://www.emarketer.com/Article/Mobile-Draws-Deal-Seeking-Grocery-
Shoppers/1010778 Accessed January 8, 2017
31. Trading Economics (2015). China Retail Sales YoY. Available at: http://www.tradingeconomics.com/china/retail-sales-annual Accessed January 8, 2017
32. Trading Economics (2015). Canada Retail Sales YoY. Available at: http://www.tradingeconomics.com/canada/retail-sales/forecast Accessed January 8,
2017
33. Trading Economics (2015). Brazil Retail Sales YoY. Available at: http://www.tradingeconomics.com/brazil/retail-sales-annual Accessed January 8, 2017
34. Trading Economics (2015). Japan Retail Sales YoY. Available at: http://www.tradingeconomics.com/japan/retail-sales-annual Accessed January 8, 2017
35. Trading Economics (2015). Chile Retail Sales YoY. Available at: http://www.tradingeconomics.com/chile/retail-sales-annual Accessed January 8, 2017
36. Identity Theft Resource Center (2016). Identity Theft Resource Center Breach Report Hits Near Record High in 2015. Available at:
http://www.idtheftcenter.org/ITRC-Surveys-Studies/2015databreaches.html Accessed January 8, 2017
37. Ibis World (2015). Online Grocery Sales in the US: Market Research Report. Available at: http://www.ibisworld.com/industry/online-grocery-sales.html
Accessed January 8, 2017
38. Bishop, B. (2014). Ready or not, here comes online grocery. Available at: http://supermarketnews.com/online-retail/ready-or-not-here-comes-online-
grocery Accessed January 8, 2017
39. Nielsen (2015). The Future of Grocery. Available at: http://www.nielsen.com/us/en/insights/reports/2015/the-future-of-grocery.html Accessed January 8,
2017
SLIDE | 13
SOURCES (3/3)

14. SLIDE | 14
GET THE FULL
PRESENTATION
BUY WAL-MART
STORES, INC. SWOT
2017