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Company Analysis: Walmart, Inc. Research Paper

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Introduction

Mission and goals, ultimate goals.

Walmart, Inc. is a significant retail and wholesale distribution company. The company was founded in 1962 by Sam Walton to conduct convenient commerce at affordable prices close to wholesale (History, n.d.). As the number of stores and the quality of products grew, so did the number of customers. Walmart has more than 2 million employees and a turnover of nearly $600 billion (Walmart annual report, 2020). The company conducts its activities by its unique business model and forms its goals based on it.

Walmart supplies relatively cheap products, which is ensured by modern technology in supply chain organizations. A large customer base is a consequence of the company’s mission: making a difference in the lives of its customers (Purpose, n.d.). The corporate mission is also related to preserving people’s savings on necessities to improve their lives. The company’s primary goals are building trusting customer relationships and developing store loyalty. This shows the company’s potential to create long-term relationships with consumers and consider their desires for the sales organization. According to the company’s statement, the goal of saving consumers money is called a productivity loop, which allows them to save money on merchandise (Purpose, n.d.). Walmart also points out that they have a social responsibility to benefit the public by making it easier for them to shop.

The company is interested in preserving and developing the quality of its products, giving them all the features consumers need. Their ultimate goal is to distribute cheap and affordable food in their stores to achieve public goods. Data from corporate financial reports indicate an increase in profits while maintaining production and logistics costs ( Walmart annual report, 2022) . In addition, Walmart is interested in sustainability and tries to drive its business in a sustainable direction (Sustainability, n.d.). The company owns two main websites corporate.walmart.com for corporate goals and walmart.com for the customers.

History (n.d.). Corporate Walmart. Web.

Purpose (n.d.). Corporate Walmart. Web.

Sustainability . (n.d.). Corporate Walmart. Web.

Walmart annual report. (2022).Walmart. Web.

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Strategic Direction

ISSN : 0258-0543

Article publication date: 29 November 2021

Issue publication date: 3 January 2022

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

This research paper concentrates on Walmart's launch of the mobile app shopping delivery subscription service, Walmart Plus. Discounted gas gives it an edge over Amazon Prime, yet Walmart Plus lacks the streaming services of Amazon Prime. After a relatively slow start in consistently growing the service across all demographics, Walmart Plus leaders are advised to seriously consider going organic, leveraging the powerful reach of social media influencers, and integrating online with Walmart-owned Sam's Club.

Originality/value

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

• Walmart Plus
• Subscription service
• Subscription strategy
• Communication strategy
• Customer value model
• Online shopping

(2022), "Customer reactions to growing Walmart Plus: Exploring the challenges of Walmart’s online shopping subscription service going head-to-head with Amazon Prime", Strategic Direction , Vol. 38 No. 1, pp. 29-31. https://doi.org/10.1108/SD-11-2021-0137

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Your Complete Guide to Walmart‘s Research and Development Strategy for 2024

Hey friend! With new technologies and competitors emerging every day in retail, you may be wondering – how does Walmart manage to keep their edge? What is Walmart doing to continue leading retail innovation into the future?

After digging into their research and development (R&D) strategy, let me walk you through what I learned. I‘ll explain what Walmart‘s R&D involves, where they are investing, key innovations they‘ve introduced, and the benefits it brings.

Whether you are a bargain hunter, convenience seeker, tech enthusiast or someone just plain curious about how the world‘s largest company stays on top, this inside look will give you a new appreciation for Walmart‘s relentless innovation. Let‘s dive in!

How much does Walmart invest in research and development?

Walmart spends billions each year on R&D – exact amounts aren‘t disclosed publicly but we can see evidence of massive investments across the board.

Here are some of Walmart‘s major innovation investments:

Customer insights team – Walmart employs over 200 researchers focused solely on understanding global consumers through surveys, focus groups, interviews and data analysis.

@WalmartLabs – Acquired in 2011 for over $300 million, this division builds new technologies for Walmart‘s e-commerce, operations and logistics.

Store No. 8 – Founded in 2018, this Walmart incubator develops proprietary technologies in areas like VR, AI, robotics, drones and autonomous vehicles. They‘ve produced cool in-store concepts like Intelligent Retail Lab – an AI-powered store that senses customers as they shop.

Startup acquisitions – Walmart has acquired numerous startups valued from $50 million to over $16 billion to gain access to innovative capabilities. For example, they acquired Jet.com for $3 billion in 2016 to supercharge their ecommerce logistics network.

Sustainability research – Walmart funds extensive research at universities and institutions focused on supply chain sustainability and environmental impact reduction. They donated $25 million to the University of Arkansas in 2018.

With this extensive investment in identifying trends, building proprietary tech, partnering with startups and more, it‘s no wonder Walmart is able to roll out groundbreaking innovations year after year!

Next, let‘s look at the types of activities Walmart‘s R&D strategy involves day-to-day.

What does Walmart‘s innovation process look like?

Walmart‘s research and development strategy involves a broad range of activities aimed at fueling innovation across the enterprise:

Idea generation – Walmart gathers ideas from employees, vendors, shoppers, focus groups, startups, and partners. Internal collaboration tools like Walmart 2.0 facilitate idea sharing.

Market research – They conduct extensive research to identify customer needs, shopping habits, retail trends, sustainability opportunities, and competitive threats.

Concept testing – New concepts are tested through focus groups, surveys, beta tests in stores, and analyzing customer feedback.

Prototype development – Walmart Labs builds functional prototypes of new technologies like checkout apps, delivery drones, virtual reality shopping, and more.

Pilot testing – Promising innovations are piloted in a small number of stores/regions to gauge customer response and business impact before scaling.

Implementation – Successful innovations are refined and rolled out across stores, websites or supply chain facilities.

Performance monitoring – Key metrics are monitored to assess the impact of new innovations on sales, costs, efficiency, and the customer experience.

Strategic partnerships – Walmart partners with tech companies, universities, and startups to co-develop and test cutting edge tech.

Acquisitions – They identify high-potential startups to acquire, integrating their innovations into operations.

Iterative improvement – Existing innovations are continually refined based on customer feedback and performance data.

This extensive innovation funnel allows Walmart to sustainably develop breakthrough innovations that keep them ahead of the competition. Now, let‘s explore some of the key innovations Walmart has introduced over the years to enhance the customer experience.

How has innovation changed the Walmart shopping experience?

Here are some of the key ways Walmart‘s R&D has transformed the shopping experience for customers like you and me:

Faster checkout – Walmart has heavily invested in tech to speed up checkout lines, saving us time. Options include:

• Scan & Go app – Scan items with your phone as you shop
• AI-powered Pickup Towers – Order online, pickup from secure towers in-store
• Mobile Express Returns – Return items without waiting in line

New delivery options – Walmart‘s research into delivery logistics has opened up new convenient ways to get your items. You can now:

• Get groceries delivered same-day with Express Delivery
• Receive next-day delivery on over 160,000 items with Walmart+ membership
• Get in-home delivery with InHome service where they stock your fridge!

Omnichannel experiences – Walmart‘s quest to integrate digital and physical shopping means you can now:

• Enjoy an easy click & collect process buying online and picking up in-store
• Receive location-based alerts about in-store deals when you‘re nearby a store
• Enjoy voice-activated grocery shopping through Walmart Voice Order

Personalization – By leveraging data analytics and AI, Walmart provides personalized promotions and recommendations making it easier to discover relevant products.

New store concepts – format innovations like Walmart Health clinics provide low-cost medical services, while new Supercenters have more self-checkout options.

Sustainability – Efforts like the Eden Reforestation Project use blockchain to trace mangoes ensuring sustainable sourcing. New commitments aim to become emission neutral by 2040.

As you can see, Walmart‘s R&D has introduced many innovations that improve convenience, selection, affordability and the overall retail experience for many shopper types ranging from bargain hunters to technophiles.

Next let‘s explore the key benefits Walmart sees from its massive R&D investments.

What is the impact and benefits of Walmart‘s innovation focus?

Walmart‘s substantial investments in R&D generate significant benefits:

Enhanced competitiveness – Continuous innovation allows Walmart to stay ahead of rivals in meeting customer needs

Improved customer experience – Leveraging emerging tech enhances convenience through services like voice shopping and pickup towers

Greater e-commerce capabilities – Acquisitions and investments in logistics propelled e-commerce sales to over $77 billion in 2022, growing nearly 30% from the previous year.

Increased efficiency – Initiatives like blockchain food traceability and AI lower costs while improving productivity

Sustainability – Innovation allows Walmart to reduce emissions across its supply chain and enhance environmental practices

Business diversification – R&D results in new revenue streams like digital ads, financial services, healthcare clinics and business data services.

Talent retention – Leading-edge innovation helps attract and retain top technical talent to sustain capabilities.

Based on these substantial benefits, it‘s clear that Walmart‘s long-term R&D focus provides excellent ROI and is central to its continued market leadership.

What technology areas is Walmart focused on with R&D?

Looking at Walmart‘s patents, acquisitions, and research initiatives, we can see the key technology areas they are betting on for the future:

AI Applications – Walmart is aggressively adopting AI across operations in areas like pricing optimization, inventory management, autonomous delivery, cashier-less stores and more.

VR/AR Shopping – Virtual reality and augmented reality allow Walmart to prototype next-gen store concepts. For example, VR headsets enable immersive virtual showrooming experiences.

Blockchain – Walmart is using blockchain ledger technology to enhance food traceability, supply chain transparency and efficiency in logistics coordination.

Robotics & Automation – Walmart is piloting robots for inventory scanning, warehouse logistics automation and self-driving cars for delivery.

Sustainability – R&D focused on reducing emissions, food waste and packaging is helping Walmart enhance its environmental footprint and meet societal expectations.

Internet of Things – In-store sensors provide data to improve inventory management, maintenance, energy efficiency and loss prevention.

Mobile Commerce – Walmart is innovating in mobile apps, social commerce, messaging commerce and other channels beyond its website. Over three-quarters of Walmart‘s e-commerce sales now come from mobile channels.

Prioritizing these high-potential technologies of the future ensures Walmart retains its industryleading position for years to come.

The Bottom Line on Walmart‘s Research and Development

In closing, I hope this overview gave you a deeper look into how Walmart leverages R&D and innovation to transform the retail landscape!

Key takeaways include:

Walmart spends billions annually on R&D activities like customer insights, emerging technology incubation, startup acquisitions and more.

This enables them to continually roll out groundbreaking innovations that enhance omnichannel experiences, convenience, personalization, sustainability and value across physical and digital retail.

Focus areas like AI, blockchain, robotics and mobile commerce provide proprietary edge in meeting the trends of future.

The substantial investments in research and development are key strategic pillars of Walmart‘s market leadership and continued growth.

The next time you shop at Walmart in-store or online, you can better appreciate the relentless drive for innovation happening behind the scenes! Let me know if you have any other retail tech topics you‘d like me to explore.

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• Brian Jones Ph.D. 5  

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Retail ; Shopping ; Superstores ; Supply chains

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http://walmartstores.com/AboutUs/

Introduction

Wal-Mart Stores, Inc. or simply Walmart as it is more often known is one of the world’s largest retailers with stores – retail units – in 15 countries. As one of the world’s largest corporations, it has been the focus of much CSR discussion. Its business operations, processes, and practices have been subject to much scrutiny, which has resulted in both praise and criticism.

Brief History

Sam Walton founded Walmart in 1962. Its core business is a chain of large supermarkets that sources, distributes, supplies, and sells a vast range of products to consumers in a number of countries across the world. Today it is one of the largest companies in the world. Founded in and registered as a business in the USA, today its chain of supermarkets and business operations span the globe. Walmart’s business philosophy of...

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References and Readings

(The) Financial Times (2012). Walmart’s woes, 25 Apr 2012, p. 10.

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Jopson, B. (2012b) Walmart chair pledges probity. The Financial Times , 2 June 2012, p. 19.

Jopson, B., & Scannell, K. (2012). Walmart hit by claims of bribery in Mexico. The Financial Times , 24 Apr 2012, p. 15.

Smith, N. C., & Crawford, R. J. (2009). The Wal-Mart supply chain controversy. In N. C. Smith, & G. Lenssen (Eds.), Mainstreaming corporate responsibility (pp. 554–572). Wiley. Chichester, West Susser

Walmart (2010a). http://walmartstores.com/AboutUs/ . Accessed 10 Sept 2010.

Walmart (2010b). Annual report http://cdn.walmartstores.com/sites/AnnualReport/2010/PDF/WMT_2010AR_FINAL.pdf . Accessed 10 Sept 2010.

Walmart (2012a). http://www.walmartstores.com/AboutUs/9538.aspx . Accessed 7 June 2012.

Walmart (2012b). http://investors.walmartstores.com/phoenix.zhtml?c=112761&p=irol-govhome . Accessed 7 June 2012.

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Jones, B. (2013). Wal-Mart. In: Idowu, S.O., Capaldi, N., Zu, L., Gupta, A.D. (eds) Encyclopedia of Corporate Social Responsibility. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-28036-8_468

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Walmart - Statistics & Facts

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Walmart: net sales worldwide FY2006-FY2024

Walmart's net sales worldwide from fiscal year 2006 to 2024 (in billion U.S. dollars)

Walmart: growth in net sales worldwide FY2006-FY2023

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Walmart: gross profit margin worldwide FY2006-FY2023

Walmart's gross profit margin worldwide from fiscal year 2006 to 2023

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Walmart: estimated net sales 2017-2027, by channel

Estimated net sales of Walmart from 2017 to 2021, with a forecast to 2027 (in billion U.S. dollars), by channel

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Walmart's net sales worldwide from fiscal year 2008 to 2024, by division (in billion U.S. dollars)

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Estimated net sales of Walmart in 2022 and 2027, by category (in billion U.S. dollars)

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Walmart International's net sales from fiscal year 2019 to 2024, by country (in million U.S. dollars)

Walmart: net sales share in the U.S. in FY2023, by product category

Net sales share of Walmart U.S. in the United States in fiscal year 2023, by merchandise category

Sam's Club: net sales share in the U.S. FY2023, by product category

Net sales share of Sam's Club in the United States in fiscal year 2023, by merchandise category

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Online sales of Walmart worldwide from fiscal year 2019 to 2023, by division (in billion U.S. dollars)

Walmart online grocery sales in the U.S. 2020-2024

Walmart Inc. grocery e-commerce sales in the United States from 2019 to 2024 (in billion U.S. dollars)

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E-commerce share of sales of Walmart 2022, by country

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• Basic Statistic Walmart International: total number of stores FY2016-FY2023, by type
• Basic Statistic Walmart: number of stores in 2023, by country
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Walmart: number of stores globally FY2008-FY2023

Number of Walmart stores worldwide from fiscal year 2008 to 2023

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Number of Walmart stores worldwide from fiscal year 2006 to 2023, by division

Walmart: number of stores worldwide 2022-2027, by banner

Number of Walmart stores worldwide in 2022 with a forecast for 2027, by banner

Walmart International: total number of stores FY2016-FY2023, by type

Total number of stores of Walmart International from fiscal year 2016 to 2023, by type

Walmart: number of stores in 2023, by country

Number of stores of Walmart International as of January 2023, by country

Walmart: number of stores in the U.S. 2012-2023, by type

Number of Walmart U.S. stores in the United States from fiscal year 2012 to 2023, by type

Competitors

• Basic Statistic Annual net sales of Amazon 2004-2023
• Premium Statistic Net sales revenue of Amazon from 2006-2023, by segment
• Premium Statistic Costco: net sales worldwide 2011-2023
• Premium Statistic Costco: global revenue 2017-2023, by region
• Premium Statistic Kroger's sales in the U.S. 2007-2022
• Premium Statistic Kroger's sales revenue 2022, by category

Annual net sales of Amazon 2004-2023

Annual net sales revenue of Amazon from 2004 to 2023 (in billion U.S. dollars)

Net sales revenue of Amazon from 2006-2023, by segment

Annual net sales revenue of Amazon from 2006 to 2023, by segment (in billion U.S. dollars)

Costco: net sales worldwide 2011-2023

Net sales of Costco worldwide from 2011 to 2023 (in million U.S. dollars)

Costco: global revenue 2017-2023, by region

Revenue of Costco worldwide from 2017 to 2023, by region (in million U.S. dollars)

Kroger's sales in the U.S. 2007-2022

Kroger's total sales in the United States from 2007 to 2022 (in billion U.S. dollars)

Kroger's sales revenue 2022, by category

Kroger's sales revenue in 2022, by category (in billion U.S. dollars)

Consumer behavior

• Basic Statistic Walmart: weekly customer visits to stores worldwide FY2017-FY2024
• Premium Statistic Walmart: global brand value 2016-2023
• Premium Statistic Walmart brand profile in the United States 2023
• Premium Statistic U.S. department and discount store consumer satisfaction: Walmart 2008-2023
• Premium Statistic People who shopped at Walmart in the United States in 2023, by age

Walmart: weekly customer visits to stores worldwide FY2017-FY2024

Number of weekly customer visits to Walmart stores worldwide from fiscal year 2017 to 2024 (in millions of customer visits)

Walmart: global brand value 2016-2023

Walmart's brand value worldwide from 2016 to 2023 (in million U.S. dollars)

Walmart brand profile in the United States 2023

Walmart brand awareness, usage, popularity, loyalty, and buzz among grocery store customers in the United States as of September 2023

Walmart brand awareness, usage, popularity, loyalty, and buzz among online grocery delivery users in the United States in 2023

U.S. department and discount store consumer satisfaction: Walmart 2008-2023

Department and discount store consumer satisfaction with Walmart in the United States from 2008 to 2023

People who shopped at Walmart in the United States in 2023, by age

Share of people who bought groceries at Walmart in the United States as of December 2023, by age

Further reports

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