All Stocks

Products: Walmart Inc. (WMT)

Wal-Mart US(Wal-Mart US)
Wal-Mart International(Wal-Mart International)
Sam's Club(Sam's Club)
Membership & Other Income(Membership & Other Income)

Wal-Mart US

What is being offered?

Wal-Mart US stores offer a wide variety of merchandise as mentioned below.

  1. Grocery - Includes meat, produce, deli, bakery, frozen foods, floral and dry grocery as well as consumables such as health and beauty aids, household chemicals, paper goods and pet supplies. Groceries account for around half of Wal-Mart US revenue.
  2. Entertainment – Includes electronics, cameras and supplies, photo processing services, cellular phones, cellular service plan contracts and prepaid service as well as toys.
  3. Hardlines - Includes fabrics and crafts, stationary and books, automotive accessories, hardware and paint, horticulture, sporting goods, outdoor entertaining and seasonal merchandise.
  4. Apparel - Includes apparel, shoes and jewelry.
  5. Health & Wellness - Includes pharmacy and optical services.
  6. Home - Includes home furnishings, housewares and small appliances.

Who is buying?

US consumers

What buyers care about?

  1. A variety of brands and control over purchasing process
  2. Reasonable price and value for money
  3. Convenient Location
  4. Support & knowledge for discretionary products like electronics

Competitors

  1. Target
  2. Kmart
  3. Best Buy
  4. Sears
  5. Macy's
  6. Amazon/Whole Foods

Number of Wal-Mart US Stores

This refers to the number of Wal-Mart stores operating in the U.S. at the end of the fiscal' year. Wal-Mart has been the pioneer in introducing the big box format, offering a wide assortment of merchandise at low prices.

The Number of Wal-Mart US Stores have consistently risen, increasing from about 4,005 in 2012 to about 4,672 in 2016.

Chart: Number of Wal-Mart US Stores

US Square Footage per Store

This refers to the average retail space area per store measured in terms of square feet units and typically depends on store formats. Wal-Mart supercenter stores, for instance are larger than Wal-Mart discount stores, which in turn are larger compared to Wal-Mart neighborhood markets.

The US Square Footage per Store for Wal-Mart US has been increasing since 2015, due to the company's aggressive small store expansion.

Chart: US Square Footage per Store

US Revenue per Square Foot

This refers to the average annual revenue per square feet of retail store space for  Wal-Mart US stores. This is an important metric to measure retail sale success and a factor that drives operating margins.

US Revenue per Square Foot has seen steady growth in recent years, from $434 in 2013 to $445 in 2016 driven largely by small-format store growth, general economic improvement and higher consumer confidence, as well as a fast-growing e-commerce business.

Chart: US Revenue per Square Foot

Wal-Mart International

What is being offered?

Wal-Mart International stores offer a wide variety of merchandise as mentioned below.

  1. Groceries includes meat, produce, deli, bakery, frozen foods, floral and dry grocery, as well as consumables such as health and beauty aids, household chemicals, paper goods and pet supplies
  2. Entertainment includes electronics, cameras and supplies, photo processing services, cellular phones, cellular service plan contracts and prepaid service and toys
  3. Hardlines includes fabrics and crafts, stationary and books, automotive accessories, hardware and paint, horticulture, sporting goods, outdoor entertaining and seasonal merchandise
  4. Apparel includes apparel, shoes and jewelry
  5. Health & Wellness includes pharmacy and optical services
  6. Home includes home furnishings, housewares and small appliances

These merchandise are sold in several different type of store formats including supermarkets, supercenters, hypermarkets, discount stores, cash-n-carry stores, Sam's clubs, general merchandise stores and combination discount stores.

Who is buying?

Consumers across Asia, Africa, Latin America and Europe

What buyers care about?

  1. A variety of brands and control over purchasing process
  2. Reasonable price and value for money
  3. Convenient location
  4. Support & knowledge for discretionary products like electronics

Competitors

  1. Tesco
  2. Carrefour
  3. Metro

Number of Wal-Mart International Stores

This refers to the number of Wal-Mart stores operating internationally at the end of the fiscal year. Wal-Mart has been a pioneer in introducing the big box format, offering a wide assortment of merchandise at low prices.

The Number of Wal-Mart International Stores has increased from about 2,734 in 2006 to about 6,363 in 2016. The majority of growth has come from developing markets like Mexico, Brazil and China.

Chart: Number of Wal-Mart International Stores

International Square Footage per Store

This refers to the average retail space area per store measured in terms of square feet units. This typically depends on store formats.

The International Square Footage per Store historically for Wal-Mart International has declined from 74,500 square feet per store in 2006 to around 58k-59k in the past few years. This decline came as Wal-Mart fueled the expansion of its discount and other smaller format stores.

Chart: International Square Footage per Store

Wal-Mart's International Revenue per Square Foot

This refers to the average annual revenue per square feet of retail store space for Wal-Mart International stores. This is an important metric to measure retail sale success and a factor that drives operating margins.

Wal-Mart's International Revenue per Square Foot has been declining over recent years, from $391 in 2013 to $310 in 2016. This has been driven by slowing economic growth in emerging markets, mixed traffic trends and growing competition, especially from e-commerce players.

Chart: Wal-Mart's International Revenue per Square Foot

Sam's Club

What is being offered?

Sam's Club offers bulk displays of brand name merchandise, including hard goods, some soft goods, institutional-sized grocery items, and selected private-label items under the "MEMBER'S MARK", "BAKERS & CHEFS" and "SAM's CLUB" brands in warehouse club format.

A warehouse club charges a membership fee to its customers and gives them an opportunity to buy goods at the lowest prices in the market. Since the company offers discounts on its merchandise, it attempts to make up for it via a membership fee. However, warehouse club's true value lies in their ability to attract bulk purchasers. Thus, despite low margins, these clubs generate a significant amount of absolute profits due to the rapid turnover of inventory as a result of bulk purchases.

Such a value proposition is lucrative to customers who tend to buy large amounts of merchandise and thus, despite paying a membership fee, save money due to discounts. The merchandise categories are as follows:

  1. Sundries - Includes snacks, tobacco, alcoholic and non-alcoholic beverages, paper goods, laundry and home care and other consumables
  2. Food' Includes dairy, meat, bakery, deli, produce, dry, chilled and frozen packaged foods
  3. Hard goods - Includes home improvement, electronics, office supplies, outdoor living, grills, gardening and furniture
  4. Service - Includes photo processing, pharmacy and optical services, floral, tire and battery centers as well as gasoline stations
  5. Soft goods - Includes apparel, jewelry, housewares, mattresses and small appliances

Who is buying?

Small business owners and individual customers in US

What buyers care about?

  1. A variety of brands and control over purchasing process
  2. Reasonable price and value for money
  3. Convenient location
  4. Support & knowledge for discretionary products like electronics

Competitors

  1. Costco
  2. BJ's wholesale club

Number of Sam's Clubs

This refers to the number of Sam's Clubs operating in US at the end of the fiscal year. These stores offer membership for a fee, which allows consumers to shop in bulk at attractive discounts.

The number of Sam's Club stores in the U.S. has increased from about 579 in 2006 to about 660 in December 2016.

Chart: Number of Sam's Clubs

Sam's Club Revenue per Square Foot

This refers to the average annual revenue per square feet of retail store space for US Sam's Club stores. This is an important metric to measure retail sale success and a factor that drives operating margins.

Sam's Club has seen a consistent increase in the Sam's Club Revenue per Square Foot in recent years. It increased from $584 in 2006 to $687 in 2013. However, this figure declined thereafter to $683 in 2013, and reached $652 in 2016, mainly on account of an industry wide pull back in consumer spending.

Chart: Sam's Club Revenue per Square Foot

Membership & Other Income

What is being offered?

Membership & Other Income includes a variety of income categories such as Sam's Club membership fee revenues, tenant income and financial services income.

Members include both business owners and individual consumers. Individual consumers are referred to as Advantage Members. The annual membership fee for individual Advantage Member and Business Members is $35 and $40 respectively for the primary membership card.

Who is buying?

US consumers

What buyers care about?

  1. A variety of brands and control over purchasing process
  2. Reasonable price and value for money
  3. Convenient location
  4. Support & knowledge for discretionary products like electronics

Competitors

  1. Tesco
  2. Carrefour
  3. Metro
  4. Costco

Membership and Other Income

This refers to the Membership & Other Income that primarily comprises of Sam's club membership fee, tenant revenues and financial services revenues.

Membership and Other Income for Wal-Mart is quite small compared to store revenues and has remained in the range of $3-5 billion, but increased consistently over the past few years driven by new signups and expanded revenue streams.

Chart: Membership and Other Income